PrefBlog

Quebecor World has announced:

the voting results for Quebecor World’s Third Amended Joint Plan of Reorganization (the “U.S. Plan”). Voting by classes of creditors entitled to vote on the Plan reflected broad-based support for the U.S. Plan, with all classes entitled to vote receiving the applicable affirmative vote as required under the U.S. Bankruptcy Code. Of the more than 2,800 ballots cast, 2,485, or 86.4%, of all voting creditors aggregated across classes voted to accept the U.S. Plan. Based on total dollar amount of claims voted, 88.9% of the total claims, or US$1.82 billion, aggregated across classes voted to accept the U.S. Plan. Although no assurances can be made, Quebecor World believes that the U.S. Plan satisfies the requirements of the Bankruptcy Code and is confirmable.

In addition, Quebecor World also announced that its Second Amended and Restated Canadian Plan of Reorganization and Compromise (the “Canadian Plan”) was approved by affected creditors at the creditors’ meeting held earlier today. At the Canadian meeting of affected creditors of Quebecor World, the Canadian Plan was approved by approximately 96% of those affected creditors who voted in person or by proxy, representing approximately 89% of the total value of affected claims that were voted at the meeting.

A joint confirmation hearing on the U.S. Plan and the Canadian Plan is scheduled to occur on June 30, 2009 in the U.S. Bankruptcy Court for the Southern District of New York and the Quebec Superior Court, and Quebecor World anticipates the consummation of the U.S. Plan and the Canadian Plan in mid-July 2009.
Details of the voting results including votes on a class-by-class basis will be available at the following websites:
http://www.donlinrecano.com/cases/caseinfo.aspx?cl=qw
http://documentcentre.eycan.com/pages/main.aspx?SID=54
And hyperlinked from: http://www.quebecorworld.com/restructuring.aspx

The restructuring plan states:

(iii) to change each issued and outstanding Subordinate Voting Share, Multiple Voting Share, Series 3 Cumulative Redeemable First Preferred Share and Series 5 Cumulative Redeemable First Preferred Share into 0.000001 of a Redeemable Share;

(iv) immediately following the redemption of all of the Redeemable Shares in accordance with Section 1.4 of Schedule I hereto, to cancel, remove and delete the authorized share capital of the Corporation, consisting of the Multiple Voting Shares, Subordinate Voting Shares, the First Preferred Shares issuable in series and the Redeemable Shares (collectively, the “Cancelled Classes of Shares”), along with the rights, privileges, restrictions and conditions attached to the Cancelled Classes of Shares and all rights to accrued dividends in respect of all of such classes and series of shares;
…
All of the outstanding Redeemable Shares and fractional interests therein shall be automatically redeemed by the Corporation immediately following their issuance, which issuance is provided for in item [(iii)] of the Corporation’s Articles of Reorganization on Form 14 to which this Schedule I is attached, without notice to the holders of such Redeemable Shares, on payment of CDN$0.01 for each whole Redeemable Share (the “Redemption Price”).

So each IQW.PR.C & IQW.PR.D share will be turned into one one-millionth of a Redeemable Share and each Redeemable Share will be instantly redeemed for a penny.

IQW.PR.C & IQW.PR.D were last mentioned on PrefBlog when they were suspended from trading on the TSX.

Update, 2009-7-26: It’s done.

This entry was posted on Wednesday, June 24th, 2009 at 3:52 am and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.