Business News
Quebecor World Announces Filing of Amended Plan of Reorganization and Disclosure Statement With U.S. Bankruptcy Court
Thursday 07. May 2009 - A Filing of Motion With Quebec Superior Court Relating to Creditors' Meeting Under Canadian CCAA Proceedings Was Also Deposited
Quebecor World Inc. announces that, as contemplated by its press release of April 20, 2009, Quebecor World has filed an Amended Plan of Reorganization and Disclosure Statement for its U.S. subsidiaries currently subject to Chapter 11 proceedings in the United States (the “Chapter 11 Proceedings”) providing further details on the Company’s Plan of Reorganization. The U.S. Court hearing on the approval of the Disclosure Statement, which will form the basis on which creditors will vote on the U.S. Plan of Reorganization, is currently scheduled to be held before the U.S. Bankruptcy Court on May 15, 2009.
In furtherance of its reorganization efforts, Quebecor World intends to file shortly with the Quebec Superior Court a motion to authorize the convening of a creditors’ meeting relating to the proceedings currently pending in Canada under the Companies’ Creditors Arrangement Act (Canada) (the “CCAA Proceedings”) as well as to establish certain procedures and rules that will apply to the Canadian creditors’ meeting. The motion relating to the Canadian creditors’ meeting is currently scheduled to be heard by the Quebec Superior Court on May 14, 2009.
In the event the U.S. Court and the Quebec Superior Court grant the requested orders, Quebecor World expects to distribute to (1) affected creditors under the U.S. Chapter 11 Proceedings the Amended Disclosure Statement, to which will be attached a Plan of Reorganization and Compromise, in order to provide such creditors certain information relating to the creditors’ anticipated distributions under the Chapter 11 Proceedings and (2) affected creditors under the CCAA Proceedings an information circular, to which will be attached a Plan of Reorganization and Compromise, in order to provide such creditors certain information relating to the creditors’ meeting and their anticipated distributions under the CCAA Proceedings.
If approved by the required majorities of votes and subsequently confirmed or sanctioned by the U.S. Court and the Quebec Superior Court, the U.S. and Canadian Plans of Reorganization would implement the recapitalization and deleveraging of the Company contemplated in the previously announced agreement in principle reached with the Company’s major creditor constituencies. Although there can be no assurance as to the ultimate confirmation of the Plans of Reorganization, this plan formulation and confirmation process is anticipated to allow the Company to emerge from creditor protection with a strong balance sheet by mid-July.
As previously disclosed, the plans do not anticipate any recovery for the holders of the Company’s existing Multiple Voting Shares, Subordinate Voting Shares and Redeemable First Preferred Shares.