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February 4, 2008 |
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QUEBECOR WORLD: Ernst & Young Appointed as Joint Administrators Quebecor World PLC, the UK subsidiary of Quebecor World Inc., has been placed into administration. Quebecor World disclosed in its website last week that it had made significant investments in its Quebecor PLC web offset facility in recent years. These investments combined with important employee and management contributions were designed to turn around this business but these efforts have been unsuccessful. The UK facility has been cash negative since the loss of an important contract three years ago. Given the overcapacity in the UK printing industry, challenging market conditions and reduced demand for print in the UK market, Quebecor World does not believe the situation can be improved without further investment and significant restructuring. As a result the Directors of Quebecor PLC having regard to Quebecor PLC’s current financial position, have decided that it would be in the best interests of its employees and creditors to appoint Ian Best and David Duggins of Ernst & Young LLP as joint administrators of Quebecor PLC effective on Jan. 28, 2008. Following their appointment, the Administrators will consider all options with regard to the way forward including a possible sale of the business. The Administrators will provide a further press release shortly. The Corby facility is located in the central UK about 70 miles north of London. It currently employs approximately 290 people and produces magazines, catalogs and specialty print products for marketing and advertising campaigns. This decision is not related to Quebecor World’s filing for credit protection in the United States and Canada and has no impact on its other European facilities. Quebecor World’s other European facilities continue to operate as usual serving many of Europe leading publishers and retailers. About Quebecor World Quebecor World Inc. (TSX: IQW) -- http://www.quebecorworld.com/ -- provides high-value, complete marketing and advertising solutions to leading retailers, catalogers, branded-goods companies and other businesses with marketing and advertising activities, as well as complete, full-service print solutions for publishers. The company is a market leader in most of its major product categories, which include advertising inserts and circulars, catalogs, direct mail products, magazines, books, directories, digital premedia, logistics, mail list technologies and other value-added services. Quebecor World has approximately 28,000 employees working in more than 115 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, Switzerland and the United Kingdom. Quebecor World and its Canadian subsidiaries filed a petition under the Companies' Creditors Arrangement Act before the Superior Court of Quebec, Commercial Division, in Montreal, Canada, on Jan. 20, 2008. They obtained creditor protection until Feb. 20, 2008. 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 U.S. units listed total assets of $5,554,900,000 and total debts of $4,140,700,000 when they filed for bankruptcy. Aout Quebecor World PLC Based in Corby, Northamptonshire, Quebecor World PLC -- http://www.quebecorworldplc.com/ -- is a subsidiary of Quebecor World Inc. Quebecor PLC specializes in web offset magazines, catalogues and specialty print products for marketing and advertising campaigns. The company employs around 290 people. |
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