Quebecor World Beats Former Parent in Court
MONTREAL—Quebecor Inc. was unsuccessful in its 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 the printing arm in January when Quebecor World filed for bankruptcy protection.