Quebecor World Inc. has reached agreement regarding on the key terms that will enable it to emerge from creditor protection.
Quebecor and its major creditors have agreed on the major tenets of a consolidated restructuring plan that will form the basis of a comprehensive plan of reorganization. The plan will allow the company to recapitalize and substantially “deleverage from its pre-filing levels”, according to a company statement.
In connection with this restructuring, the Company also anticipates having to arrange exit financing at levels below its current debtor-in-possession financing facility.
Quebecor is working with its major creditor constituencies, and anticipates that it will be in a position to file its reorganization plans in Canada and the U.S. by the end of April. The plans will offer information regarding the recapitalization of the company, the recoveries that will be available to creditors and the going forward business plan of the reorganized company. This process is anticipated to allow for Quebecor’s emergence from creditor protection by mid-July.
According to Quebecor, it is highly unlikely that the Company's existing Multiple Voting Shares, Redeemable First Preferred Shares and Subordinate Voting Shares will have any value following the implementation of a plan of reorganization.
