Quebecor World expects to emerge from creditor protection by mid-July

After reaching an agreement in principle on the key terms that will allow it to successfully emerge from creditor protection, Quebecor World Inc. said it expects to file a reorganization plan in Canada and the US by the end of April and emerge from creditor protection by mid-July.

After extensive negotiations with its major creditor constituencies, Quebecor World said it has reached general agreement on the material terms and conditions of a consolidated restructuring plan that will form the basis of a comprehensive reorganization plan, arrangement or compromise that will recapitalize and substantially deleverage the company from its pre-filing levels.
 
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 World filed for creditor protection in Canada and the US in January 2008. Since that time the company has closed a Magog, Quebec, facility, which produces magazines and retail inserts; closed a North Haven, CT, plant, which produced general commercial printed products, and significantly downsized a facility in Etobicoke, Ontario, that produces retail flyers and catalogs, and binds directories.

The commercial printer also merged its US retail insert, catalog, Sunday magazine division and direct mail division into a new integrated marketing group.

In June, Quebecor World completed the sale of its European operations to Hombergh/De Pundert Group, a Netherlands-based investment group.