Courts approve Quebecor World reorganization; now the tax man has to say yes

The courts have approved the reorganization of Montreal-based printer Quebecor World, but it depends on whether the U.S. Internal Revenue Service approves the company’s proposed settlement of approximately $22.5 million in unpaid taxes, the court said.

According to a story in Folio:, both a bankruptcy court in New York and Quebec’s Superior Court courts agreed that Quebecor’s noteholders, debtors and creditors committee also must reach an “acceptable compromise” on the definitive terms of the plan. A joint hearing July 13 to determine if all terms have been satisfied, Quebecor said.

The U.S. government had objected to Quebecor’s reorganization plan because it owed taxes and released third parties from environmental penalties.

“This is a major milestone in successfully restructuring our company to benefit all stakeholders,” Quebecor’s president and CEO Jacques Mallette said in a statement. “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.”