July 2009
On July 21, 2009, Quebecor World Inc. announced that it had successfully emerged from protection under the Companies’ Creditors Arrangement Act in Canada (CCAA) and Chapter 11 of the US Bankruptcy Code.
In what is the largest Chapter 11 case filed in the United States in 2008, other than the Lehman Brothers bankruptcy, Arnold & Porter represented Quebecor World (USA) Inc. and its 52 affiliated debtors in this multi-billion dollar, cross-border reorganization and financial restructuring. In this regard, the plans of reorganization were confirmed by Judge James Peck of the US Bankruptcy Court for the Southern District of New York, as well as by Judge Robert Mongeon of the Quebec Superior Court in Montreal, under the CCAA, on June 30, 2009.
The news announcement immediately garnered international media coverage. According to Reuters, Judge Peck said the Quebecor bankruptcy has been a "vastly complex" cross-border bankruptcy case, noting the company did not file a prepackaged bankruptcy, and was not pressured by lenders to quickly sell itself. "This is a classic, increasingly rare Chapter 11—a stand-alone reorganization," Peck said.
Quebecor is among the largest printing companies in the world, with operations in the United States, Canada, Europe, and Latin America. In connection with the Company's exit from protection and as part of the implementation of the plans, the names of the entities in the Company's group will change to World Color Press Inc., which was previously the name of one of the merged companies that created Quebecor World in 1999.
Arnold & Porter’s representation of Quebecor World Inc. was led by Michael Canning, who is based in the firm’s New York office, as well as partners Neil Goodman and Joel Gross of the firm’s Washington, DC office; associates Charles Malloy and Rosa Evergreen (Washington, DC); and associate Karuna Rubin (New York). The firm’s bankruptcy and corporate restructuring practice represents a diverse client base, including corporate debtors, investors and asset purchasers, committees, bondholders, secured and unsecured creditors, parties dealing with distressed businesses, officers and directors, and other interested parties in corporate restructurings, bankruptcy proceedings, and related litigation throughout the US. In another critical bankruptcy matter of national importance, Arnold & Porter represented the Chrysler National Dealer Council in the Chrysler bankruptcy proceedings.