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March 14, 2008 |
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QUEBECOR WORLD: Lindenmeyr Objects to Reclamation Procedures Lindenmeyr Central and Lindenmeyr Book Publishing, divisions of Central National-Gottesman Inc., ask the U.S. Bankruptcy Court for the Southern District of New York to deny the proposed claims treatment procedure of Quebcor World Inc. and its debtor- affiliates. Pursuant to Section 546(c) of the Bankruptcy Code, Lindenmeyr submitted a reclamation demand to the Debtors demanding reclamation of all goods received within 45 days prior to the Petition Date. Lindenmeyr's reclamation of demands is at an aggregate price of US$1,245,653. Lindenmeyr echoes the contentions raised by other objecting reclamation vendors. Lindenmeyr asserts the proposed procedures (i) deny a reclamation creditor's right to reclaim goods under Section 546(c) of the Bankruptcy Code; (ii) prejudice a creditor by precluding it from filing any motion until 120 days after the Petition Date; and (iii) do not require that the Debtors comply with Section 546(c) for reclamation demands that are subsequently determined to be valid. Suppliers Balk at Proposed Reclamation Procedures As reported in the Troubled Company Reporter on Feb. 25, 2008, Abitibi Consolidated Sales Corp., Abitibi-Consolidated US Funding Corp., Bowater America Inc. and Bowater Inc.; Packaging Corporation of America; Catalyst Pulp and Paper Sales Inc., and Catalyst Paper (USA) Inc.; Rock-Tenn Company; Midland Paper Company; and Day International Inc., in separate filings object to the Debtors' proposed claims treatment procedures. These Suppliers sold goods, specifically paper products and printing chemicals, to the Debtors before and within the Petition Date. They sent the Debtors written demands for the return of goods received by the Debtors within 45 days of their Reclamation Demands. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE: IQW), -- http://www.quebecorworldinc.com/ -- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which it offers a mix of printed products and related value-added services to the Canadian market and internationally. The company is an independent commercial printer in Europe with 19 facilities, operating in Austria, Belgium, Finland, France, Spain, Sweden, Switzerland and the United Kingdom. In March 2007, it sold its facility in Lille, France. Quebecor World (USA) Inc. is its wholly owned subsidiary. Quebecor World and 53 of its subsidiaries, including those in Canada, filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable Justice Robert Mongeon oversees the CCAA case. Francois-David Pare, Esq., at Ogilvy Renault, LLP, represents the Company in the CCAA case. Ernst & Young Inc. was appointed as Monitor. On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S. subsidiary, along with other U.S. affiliates, filed for chapter 11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP represents the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors is represented by Akin Gump Strauss Hauer & Feld LLP. Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/ -- is the U.K. subsidiary of Quebecor World Inc. that specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. Quebecor PLC was placed into administration with Ian Best and David Duggins of Ernst & Young LLP appointed as joint administrators effective Jan. 28, 2008. As of Sept. 30, 2007, Quebecor World's unaudited consolidated balance sheet showed total assets of US$5,554,900,000, total liabilities of US$3,964,800,000, preferred shares of US$175,900,000, and total shareholders' equity of US$1,414,200,000. The company has until May 20, 2008, to file a plan of reorganization in the Chapter 11 case. The Debtors' CCAA stay has been extended to May 12, 2008. (Quebecor World Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/ or 215/945-7000) * * * As reported in the Troubled Company Reporter on Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in-Possession. The related US$600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. |
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