Quebecor World suspends dividend payments on preferreds

By Lisa Kerner

Charlotte, N.C., Nov. 26 - Quebecor World Inc. is suspending dividend payments on its series 3 and series 5 preferred shares because it may fail to satisfy the capital adequacy test under the Canada Business Corporations Act and not due to lack of funds.

Because the dividends are cumulative, holders will be entitled to receive unpaid dividends when the company is permitted to resume the payments.

The suspension was on the advice of counsel, according to a company news release.

Quebecor said it will ask its shareholders to approve a reduction of stated capital as allowed under the Canada Business Corporations Act at its annual meeting in May. The move should enable the company to resume dividend payments.

Robert Coallier, a Quebecor director, resigned from the company's board for personal reasons not related to the dividend payment matter, the company also announced on Monday.

Quebecor World is a Montreal-based marketing firm.

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