Quebecor World Files for Protection
MONTREAL—Quebecor World, at one time the crown jewel in the Quebecor Inc. empire, filed for creditor protection in the United States and Canada while simultaneously securing $1 billion in new financing that will allow it to meet all current operating needs.
North America’s second-largest printer quickly secured protection under the Companies’ Creditors Arrangement Act (CCAA) in Canada and Chapter 11 of the U.S. bankruptcy code. Ernst & Young will serve as the court-appointed monitor under the CCAA process and will assist Quebecor World in formulating its restructuring plan. The decision to file for creditor protection was unanimously approved by Quebecor World’s board of directors.
The company received a much-needed boost when it secured $1 billion in new financing from Credit Suisse and Morgan Stanley. The funds will enable Quebecor World to address its operating needs such as wages, benefits and other operating expenses.