Canwest Global Communications Corp. has won an extension of bankruptcy protection until June 30 for its newspaper division. This will allow the company to complete an auction for the publications, Bloomberg reported.

The extension was granted by Ontario Superior Court Judge Sarah Pepall Tuesday in Toronto. The bankruptcy protection was first granted on Jan. 8, and due to expire on April 14.

According to court documents, Canwest Global are willing to sell the newspaper division to a group of banks for $828 million of debt in return, unless there is a higher cash bid or an offer acceptable to the lenders. Qualified bidders are now under research process, according to court documents.

Canwest lawyer Lyndon Barnes said at today's hearing that "at this stage, we don't know whether the company will get a better offer", Bloomberg reported.