The U.S. government has asked a New York bankruptcy court to deny Quebecor World’s plan of reorganization because it releases third parties from environmental penalties and because the company owes unpaid taxes.

The government’s motion, filed Wednesday, said Quebecor’s plan would release a “panopoly of non-debtors from a broad swath of potential liability,” including $150 million in Clean Air Act penalties, according to a Canadian Press news report [1]. It also alleges that Quebecor owes more than $10 million in unpaid taxes.

The third part non-debtors include the creditors’ committee, the syndicate committee, noteholders, debtor-in-possession lenders, directors, financial advisers and investment bankers. Other groups, including the Graphic Communications Conference and the International Brotherhood of Teamsters, also are said to have filed objections to Quebecor’s plan.

“Quebecor World received overwhelming support in the vote by creditors to approve the plan of reorganization,” the company said in a statement e-mailed to FOLIO:. “Objections to confirmation are not unusual and are typically addressed at the hearing on confirmation.”

Earlier this week, Quebecor’s creditors approved the company’s plans of reorganization in the U.S. and Canada. Creditors also approved the members of Quebecor’s new board of directors, and named former R.R. Donnelley CEO Mark Angelson as chairman.

Quebecor said it expects “many of the objections” to be settled before the company’s joint confirmation hearing, scheduled for June 30 in New York and Quebec's Superior Court. The company said it also still expects to emerge from bankruptcy in mid-July.