The court hearing for troubled Quebecor World, happening simultaneously in Montreal and New York state, has been tied up due to a request for further clarification from lawyers representing a bank syndicate. As well, last week the U.S. government submitted objections to the recovery plan proposed by Quebecor World due to the status of unpaid corporate taxes and unresolved environmental fines.
And as reported in the Globe and Mail, the U.S. judge was “shocked” by what transpired in the court.
Last Wednesday a court motion was submitted to the U.S. Bankruptcy Court in the Southern District of New York seeking around US$10-million in taxes owed and more than US$150-million related to violations of environmental laws.
The motion filed by the government suggests the current restructuring plan would remove any liabilities for these claims.
Bankruptcy court sessions in Canada and the U.S. began at 10 am Tuesday, June 30th.
The major creditors of the insolvent printer voted to accept the proposed restructuring plan on Monday, June 22nd, and a new slate of proposed directors has already been announced, including the insertion of former RR Donnelley CEO, Mark Angelson, as Chairman.
