 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
Quebecor set to emerge
from bankruptcy
Published Sunday, July 12
By Jebb Johnston
Staff Writer
Quebecor World is poised to emerge from bankruptcy in mid-July following recent court approval of its reorganization plan.
Hearings held jointly in Quebec Superior Court and U.S. Bankruptcy Court in New York on June 30 were favorable for the company, which published reports say is on the verge of a name change. Creditors approved the plan on June 22.
Alliance President Gary Chandler sees cause for optimism for Corinth's longtime printing plant.
"They had shunned a couple of offers by their main competitor, Donnelley, to buy them out," said Chandler. "I think this scenario versus a Donnelley buyout is the best scenario for Corinth."
Rival RR Donnelley, which made its offer in May, is a 144-year-old company based in Chicago.
Chandler noted it is a tough time for the industry.
"There are probably going to be some tough times as we navigate through the early stages of their reemergence," he said.
But the company could be well-positioned to succeed as the economy recovers, said Chandler.
A court hearing is scheduled Monday for the company and stakeholders to report on the status of any issues that remain outstanding relating to the terms of the new securities to be issued by Quebecor under the plans.
The company says its timetable remains on track.
"We look forward to exiting creditor protection in mid-July and moving forward with the implementation of our business plans as a strong competitor in the industry," CEO Jacques Mallette said in a news release.
Published reports have said the company will change its name to Novink, although Quebecor has made no announcement of such plans. Former RR Donnelley CEO Mark Angelson was recently named chairman of the company's new independent directors.
Including predecessors, the Corinth facility on South Harper Road has a history of more than 30 years in printing and as one of the city's largest employers. It became home to Quebecor in 1999 when World Color Press merged with Quebecor World, which employs about 20,000 in approximately 90 facilities. The company's products include advertising inserts and circulars, catalogs, direct mail products, magazines, books and directories. Quebecor had first quarter revenues of $752 million, down from $1 billion compared to the previous year. The company attributed the decrease to the economic recession.
