Quebecor World receives rescue financing proposal from controlling shareholder, Brookfield fund

By Lisa Kerner

Charlotte, N.C., Jan. 11 - Quebecor Inc. and Tricap Partners Ltd. jointly submitted a binding proposal to Quebecor World Inc. for a C$400 million rescue financing facility designed to meet the company's "liquidity challenges" and recapitalize Quebecor World.

Tricap, a private equity fund managed by Brookfield Asset Management, and Quebecor Inc. are equal investors in the facility, a news release stated.

Quebecor Inc. is the controlling shareholder of Quebecor World, with some 84.5% of the voting interests and 35.5% of the equity interests in the company.

If Quebecor World accepts the proposal and the required consents are obtained, C$200 million would be made immediately available to the company for sufficient liquidity to the facility closing date slated for March 31.

After a preliminary review, Quebecor World management determined that the proposal is "meaningful and serious in light of the circumstances and the company's current financial situation."

The board of directors of Quebecor World formed a special committee of independent directors to review the proposal and consider its terms with financial and legal advisers.

Montreal-based Quebecor World provides marketing and advertising solutions to retailers, catalogers, branded-goods companies and other businesses, as well as complete, full-service print solutions for publishers.

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