Canadian creditors back Quebecor plan
MONTREAL–Canadian creditors of Quebecor World have voted in favour of the insolvent printer’s plan to exit the bankruptcy protection from creditors it sought in January 2008.
The deal still involves a vote by 6,000 eligible creditors in the United States. Company spokesman Tony Ross yesterday disclosed the Canadian tally at a Montreal hotel.
Support must be given by at least half of those who vote in each creditor class and those votes must represent two-thirds of the value of claims of those that voted.
A total of 76 per cent and 96.5 per cent of creditors in the two classes in Canada supported the plan, representing 72 and 99 per cent of the dollar value of the claims by 2,000 eligible creditors.
If approved, Quebecor World will convert debt totalling nearly $3 billion (U affordable health insurance in oklahoma.S.) into new equity, pay out $100 million in cash and issue $70 million of new debt.
With the U.S. creditor vote still to come, results are to be confirmed in court next Tuesday.
The vote took place after rival printer R.R. Donnelley backed away after Quebecor World’s board rebuffed it twice. Its last offer was worth at least $1.55 billion. Analyst Richard Strauzer of CJS Securities said creditors may one day wish Quebecor had accepted the offer.
The Canadian Press