Quebecor to Emerge From Chapter 11 by Mid-July
Quebecor World Inc. announced that, after negotiations with its major creditors, it has reached an agreement in principle on key terms that will allow it to emerge from Chapter 11 bankruptcy. According to the company, these terms "will form the basis of a comprehensive plan of reorganization, arrangement or compromise that will recapitalize and substantially deleverage the company from its pre-filing levels. In connection with this restructuring, the company also anticipates having to arrange exit financing at levels below its current debtor-in-possession financing facility."
Quebecor said it will be in a position to file this comprehensive plan by the end of April, together with associated disclosure documents that will provide detailed information regarding the recapitalization of the company, the recoveries that will be available to creditors, and the company's reorganized business plan. Quebecor anticipates emerging from creditor protection by mid-July.
Quebecor also noted that it is highly unlikely that the company's existing multiple voting shares, redeemable first preferred shares and subordinate voting shares will have any value following the implementation of a reorganization plan.