Quebecor to Emerge from Bankruptcy Protection
Printer reaches agreement with creditors on restructuring plan.
Quebecor World, one of the world’s largest printers, has reached an agreement with its creditors that it says will allow the company to emerge from bankruptcy protection.
The agreement, Quebecor said, is based on the terms of a consolidated restructuring plan that is intended to recapitalize and “substantially deleverage” the company from its pre-filing levels. Quebecor filed for bankruptcy protection in January 2008. The announcement came one day after Quebecor World’s deadline for $400 million (Canadian) in a rescue financing deal with Tricap Partners passed without an agreement.
Quebecor said it plans to file an official plan of reorganization in Canada and in the U.S. by the end of April. The company also said it hopes to exit creditor protection as early as mid-July.
"This is very positive, especially because it is a concensus agreement by all the creditors committees and is an important step in the company’s progress to exit creditor protection in July with a strong balance sheet—and as a strong player in our industry," spokesperson Tony Ross told FOLIO:.
In connection with the restructuring, Quebecor said it anticipates having to arrange exit financing at levels below its current debtor-in-possession financing facility.
Last month, Quebecor reported a net loss from continuing operations of $943.9 million for 2008 compared to a net loss from continuing operations of $1.8 billion in 2007. The results included $165.9 million in taxes.