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St. Louis Post-Dispatch

Lee Enterprises

Thursday, January 24, 2008 10:54 PM CST
Parent company of Effingham printer granted bankruptcy protection

By AMBER WILLIAMS, Staff writer
awilliams@jg-tc.com

EFFINGHAM — The parent company of the Quebecor World Petty printing operations in Effingham was given Chapter 11 bankruptcy protection in U.S. courts Wednesday.

On a news release on its Web site Wednesday, Quebecor World announced it had received “the initial United States court orders it sought as part of its court supervised reorganization and protection.”

The courts authorized Quebecor World to borrow up to $750 million from Credit Suisse and Morgan Stanley, the press release said.

“The proceeds of the financing will be used to fund its operations as the Company reorganizes under the protection of the courts in the United States and Canada,” the release said.

As for why the Montreal-based company has sought creditor protection, President and CEO Jacques Mallette said in a statement that it would allow for Quebecor World to continue to meet all current operating needs.

“Today’s filing is the result of industry pressures, particularly in Europe, combined with the inability of the company to raise new capital in the current market environment and the inability to complete the sale of its European operations,” Mallette said. “The steps we initiate today will allow the company to make changes which are necessary to ensure the long-term viability of the company within a process that ensures fair and equitable treatment for all stakeholders.”

Quebecor World Petty in Effingham is a specialty printer of direct marketing printing services with approximately 800 employees.

Quebecor World closed the former World Color printing plant in 2004, but the Quebecor World Petty plant was not effected.

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