Quebecor asks for court approval of aircraft sale expected to generate $9.4 million profit

By Jennifer Lanning Drey

Portland, Ore., May 13 - Quebecor World Inc. requested court approval to purchase a Bombardier aircraft currently leased by Quebecor debtor Quebecor Printing Aviation Inc. and subsequently sell the aircraft to Key Equipment Finance Canada Ltd., according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Based on three purchase offers submitted to Quebecor for the aircraft, the company believes the transaction would result in a pretax profit of $9.4 million.

According to the motion, Quebecor would purchase the aircraft from Wachovia Financial Services, Inc. through an early termination clause included in the lease.

Under the purchase agreement with Key Equipment, Key Equipment will pay a deposit of $500,000 and $20.3 million upon closing of the sale.

Additionally, the sale must close by June 13.

A hearing has been scheduled for May 22.

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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