Report: Quebecor World Wants to Pay Bonuses
MONTREAL—Quebecor World has asked for approval from bankruptcy court to pay managers $4.6 million in performance bonuses earned prior to its Chapter 11 filing, according to a report in the Lincoln (NE) Journal Star.
The struggling printer filed the request with the U.S. Bankruptcy Court in New York in order to dole out incentive-based bonuses that 376 managers earned for their performance in the second half of 2007, the paper reported. The move comes on the heels of Quebecor World’s failure to negotiate new terms for a $1 billion loan for financing operations during the bankruptcy period.
U.S. Bankruptcy Judge James Peck gave Quebecor World a 30-day extension before hearing its request for the debtor-in-possession financing.
As for the bonuses, the Journal Star reported that they range from $700 to nearly $132,000. Should Quebecor World be unable to reward the key managers, the fear is they might choose to find employment elsewhere, the paper said.