Quebecor World Wins Court BattleJanuary 2009
MONTREAL—Quebecor Inc. was unsuccessful in its recent bid with the Quebec Superior Court to stop its former printing subsidiary, Quebecor World, from purchasing a press to produce advertising inserts, according to Canadian Press (CP). A U.S. bankruptcy court also gave the green light for the purchase of two other presses, for a total investment of US$50 million.
CP reported that Quebecor World and Quebecor Media were both Quebecor Inc. properties in 2005, when a press was installed at Media’s Mirabel, Quebec, facility to print several newspapers. As part of a verbal agreement, Quebecor World would use 90 percent of the press’ excess capacity. A deal was drafted that would see the printer pay C$29 million for the first three years of the agreement, but it was never signed by Quebecor World, according to CP.
Quebecor Inc. severed all ties with Quebecor World in January 2008, when the printer filed for bankruptcy protection.
Two wide-web manroland presses, equipped with quality control and delivery systems, were ordered for installation within its U.S. retail insert platform. A third, similar press will address the needs of Canadian retail insert customers.
“This investment is another clear demonstration of our commitment to provide customers with the most flexible and efficient platform available in the retail market today,” said Jacques Mallette, president and CEO of Quebecor World, in a release. “We continue to make the necessary investments in process, people and equipment, as we work toward our stated goal of exiting creditor protection as a strong participant in our industry.”