Quebecor World, creditors agree in principle on key restructuring terms; company eyes mid-July exit

By Caroline Salls

Pittsburgh, April 8 - Quebecor World Inc. has reached an agreement in principle on the key terms of a consolidated restructuring plan that will allow the company to successfully emerge from creditor protection, according to a company news release.

Quebecor World said the agreement in principle, which is the product of extensive negotiations with its major creditor constituencies, will form the basis of a comprehensive plan of reorganization that will recapitalize and substantially deleverage the company from its pre-filing levels.

In connection with the restructuring, Quebecor World said it expects to have to arrange exit financing at levels below its current debtor-in-possession financing facility.

The company said it is continuing to work with its major creditor constituencies, and Quebecor expects that it will be in a position to file a plan of reorganization, arrangement or compromise in Canada and a complementary plan of reorganization in the United States by the end of April.

According to the release, this plan formulation and confirmation process should allow the company to emerge from creditor protection by mid-July.

Quebecor World, a Montreal-based printing and marketing company, filed for Chapter 11 bankruptcy on Jan. 21, 2008 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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