Quebecor World cross-border insolvency protocol approved

By Caroline Salls

Pittsburgh, April 9 - Quebecor World (USA) Inc. received bankruptcy court approval of a cross-border insolvency protocol for its Chapter 11 bankruptcy case and Canadian Companies' Creditors Arrangement Act proceeding, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

According to the order, the protocol is designed to coordinate activities between the U.S. and Canadian courts, maximize efficiency, reduce costs and implement a framework for handling issues arising from administering the separate cases.

Under the protocol, only the U.S. court has jurisdiction over the Chapter 11 case and only the Canadian court has jurisdiction over the CCAA case. In addition, the monitors appointed by the court for the CCAA case will only be subject to the laws of the Canadian court.

However, the protocol also includes provisions for cooperation among the U.S. and Canadian courts and allows the courts to hold joint hearings when appropriate.

Under the protocol, both courts have agreed to recognize the stay of proceedings granted in the other's jurisdiction.

Quebecor, a Montreal-based printing and marketing company, filed for Chapter 11 bankruptcy on Jan. 21 in the U.S. Bankruptcy Court for the Southern District of New York and filed for protection under the Companies' Creditors Arrangement Act in Canada. Its Chapter 11 case number is 08-10152.

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