Grafikom Is Now in Receivership
TORONTO—Grafikom, the sheetfed, digital and specialty printing company that spun off from Quebecor World in November of 2005, has ceased operations and is in receivership, according to the Edmonton Journal. The move leaves more than 500 employees in eight facilities out of work. The paper, citing documents filed with Ontario Superior Court, said the privately held company owes banks $49 million. The company currently has three facilities in Toronto and single plants in Edmonton, Alberta; Calgary, Alberta; Sherbrooke, Quebec; Montreal; and Mexico.
The Journal reported that the printer began breaking financial and reporting covenants with lenders in late 2007. While lenders agreed to some waivers and changes to the agreement, a default was declared in July of 2008, the report said.
The paper reported that as recently as October, Grafikom unsuccessfully proposed to restructure itself through the sale of plants and by investing in new digital technology.
Grafikom and another entity, The MATLET Group, were created in 2005 following a pair of management-led buyouts. The Grafikom group—led by Aivars Beikmanis—paid roughly US$44.4 million for what was then six facilities in Canada, Mexico and the United States.