Quebecor Cuts Salaries 10 Percent
Cuts come after printer said it will emerge from bankruptcy protection.
Less than a week after announcing plans to emerge from bankruptcy protection this summer, magazine printer Quebecor World has reduced employee salaries company-wide by 10 percent, and cut one week of paid vacation time.
The reductions are part of the company’s overall cost-cutting initiatives, spokesperson Tony Ross told FOLIO:.
On Wednesday, the Montreal-based company said the Toronto Stock Exchange is suspending trading all of Quebecor’s outstanding classes and series of securities.
Last week, Quebecor said it reached an agreement with its creditors on a plan of reorganization that will is intended to recapitalize and “substantially deleverage” the company from its pre-filing levels. Quebecor filed for bankruptcy protection in January 2008.
Quebecor has said that it would be “highly unlikely” that its multiple voting shares, redeemable first preferred shares and subordinate voting shares “will have any value” following the implementation of a reorganization plan.