Montreal-based magazine printing giant Quebecor World said Friday a New York bankruptcy court and Quebec’s Superior Court approved its plans of reorganization.

The U.S. approval, however, hinges on whether the Internal Revenue Service approves the company’s proposed settlement of approximately $22.5 million in
unpaid taxes, the court said. Both courts agreed that Quebecor’s
noteholders, debtors and creditors committee also must reach an
“acceptable compromise” on the definitive terms of the plan.

The courts will hold a joint hearing on July 13 to determine if all terms have been satisfied, Quebecor said.

The approvals come about a week after the U.S. government objected to Quebecor’s reorganization plan because of the company's unpaid taxes and because it released third parties from environmental penalties. Other groups, including the Graphic Communications Conference and the International Brotherhood of Teamsters, also are said to have filed objections.

“This is a major milestone in successfully restructuring our company to benefit all stakeholders,” Quebecor’s president and CEO Jacques Mallette said in a statement. “We look forward to exiting creditor protection in mid-July and moving forward with the implementation of our business plan as a strong competitor in the industry.”
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