Quebecor World obtains court order for creditor protection
January 29, 2008 By Pulp & Paper Canada
Montreal, QC — Quebecor World announced that it has obtained an Order for creditor protection under the Companies’…
Montreal, QC — Quebecor World announced that it has obtained an Order for creditor protection under the Companies’ Creditors Arrangement Act.
Under the terms of the Order, Ernst & Young will serve as the Court-appointed Monitor under the CCAA process and will assist the Company in formulating its restructuring plan.
CEP, Canada’s largest printing union, is seeking a summit meeting with Quebecor World executives to discuss the company’s financial crisis which forced the company to seek creditor protection earlier this week.
“The current financial crisis at Quebecor World is a major concern to all Quebecor World employees, including CEP members and their families,” says Duncan Brown, National Director of CEP Graphical. “The CEP and our members are committed to the continuing viability of the company; but the lack of communication and information has been a problem, thus we are seeking to meet with company executives to discuss the current situation, its implications and the solutions.”
“The CEP also supports the call by global union UNI Graphical for a meeting with Quebecor World at the international level as well as the initiative of the European unions to convene a meeting with the company, through the European Works Council.”
Commenting on Quebecor World’s financial crisis, CEP National President Dave Coles said “Although there may be problems in some markets, overall this appears to be a banking crisis, rather than a business crisis.”
“Although CEP is concerned that the company’s recent refinancing negotiations collapsed, we view the injection of $1 billion dollars in new financing through Credit Suisse and Morgan Stanley with optimism and we are hopeful for the future of Quebecor World.”
CEP, the Communications, Energy and Paperworkers Union of Canada, represents 150,000 Canadian workers in several key parts of the economy, including more than 25,000 newspaper, broadcast, film and printing industry workers.
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