The Wall Street Journal-20080122-Quebecor World Inc-- Protection From Creditors Is Obtained From Court
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Quebecor World Inc.: Protection From Creditors Is Obtained From Court
Commercial printer Quebecor World Inc. said it had obtained court protection from creditors after conditions for a 400 million Canadian dollar ($389.3 million) rescue refinancing weren't met, snuffing out a last-ditch effort to shore up its balance sheet. The Montreal company's shares fell 17 Canadian cents, or 51%, to close at 16.5 Canadian cents on the Toronto Stock Exchange. The stock was valued at 17.25 Canadian dollars in February. A Quebecor World spokesman said the initial protection order lasts 30 days, but can be extended with further applications to Quebec Superior Court. The company, whose shares face delisting from the Toronto exchange, applied for creditor protection yesterday. It also said it had secured agreements for $1 billion in new financing from Credit Suisse Group and Morgan Stanley.
