Quebecor World trustee files $18.8 million claim against Catalyst

By Caroline Salls

Pittsburgh, Jan. 22 - Quebecor World (USA), Inc.'s litigation trustee has filed an $18.8 million preferential transfer claim against Catalyst Paper, according to a Catalyst news release.

Catalyst said the claim seeks the return of payments made by Quebecor World to Catalyst in the ordinary course of their trade relationship in the 90 days before Quebecor World's Chapter 11 bankruptcy filing in December 2007.

According to the release, Catalyst is one of 1,700 Quebecor World vendors who received a total of $390 million in payments during the preference period in which the litigation trustee has sought recovery.

Catalyst said it intends to defend the claim and has been advised that it has a number of defenses available that are expected to eliminate or significantly reduce its financial exposure.

As a result, Catalyst said it does not expect to incur any significant liability in connection with the Quebecor World claim.

Quebecor World, a Montreal-based printing and marketing company, emerged from Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York and its Companies' Creditors Arrangement Act case on July 21, 2009.

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