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Published on 4/24/2008 in the Prospect News Distressed Debt Daily.

Quebecor seeks to keep former division head from operating rival company

By Jennifer Lanning Drey

Portland, Ore., April 24 - Quebecor World (USA) Inc. asked the U.S. Bankruptcy Court for the Southern District of New York to restrain a former Quebecor World Premedia president from competing against the company or soliciting its employees until Jan. 10, 2009, in a Thursday court filing.

Quebecor claims former Quebecor World Premedia president Joseph S. Cha has started a rival business and has been working with Richard Waltman, former vice president of operations East for Quebecor World Premedia, and Robert Hartmann, who interviewed for the position of vice president of sales for Quebecor Premedia last fall.

Quebecor alleges Waltman downloaded the company's five-year plan and a confidential spreadsheet to his personal email account. The documents contain highly sensitive business information including the identities of top customers, Quebecor's contracts with those customers, the expiration dates of the contracts and a breakdown of the company's costs and expenses.

Quebecor believes Hartmann is working with Cha to recruit Quebecor employees to the rival company.

According to Quebecor, Cha has violated his non-compete and non-solicit clauses contained in his employment agreement with Quebecor, which has caused Quebecor to suffer irreparable harm.

Quebecor wants to be awarded costs and disbursements of the action. The company also seeks an order that would restrain Waltman from disclosing trade secrets and force the defendants to return property and confidential information to Quebecor.

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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