Quebecor World may emerge from bankruptcy reorganization in 10 days if it can work out details with creditors, lenders and the Internal Revenue Service.
The big printing company's reorganization plan was approved by a U.S. bankruptcy court Thursday, two days after getting approval from a Canadian court. But there are some strings attached.
The U.S. court order says Quebecor World needs a decision from the IRS regarding the proposed settlement of $22.5 million in back taxes. And both courts say the company needs to work out with its note holders and its creditors committee "an acceptable compromise" on the wording of the articles of reorganization and a financial document.
If the conditions have not been met, both courts will hold a hearing on July 13 to determine next steps. If the conditions have been met, the company will emerge from bankruptcy protection that day -- reportedly with the new name of "Novink".
"This is a major milestone in successfully restructuring our Company to benefit all stakeholders,” Jacques Mallette, President and CEO, said yesterday about the courts' decisions. “We look forward to exiting creditor protection in mid-July and moving forward with the implementation of our business plan as a strong competitor in the industry.”
Current stockholders in the company would receive no compensation. Quebecor World's lenders and creditors are to become its owners, with the company's stock being traded on the Toronto Stock Exchange.
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