UPDATE: Well, now it’s looking like the bail-out never came:
Quebecor World Inc (IQW.TO: Quote, Profile, Research) said on Tuesday it failed to obtain $125 million of new financing required under waivers from its banking syndicate and missed a debt payment on $400 million of notes. The struggling commercial printer, which is working on getting bank approval for C$400 million of rescue financing from its parent, media group Quebecor Inc (QBRa.TO: Quote, Profile, Research), and a private equity fund managed by Brookfield Asset Management (BAMa.TO: Quote, Profile, Research), said it did not make the $19.5 million payment of interest due that was due on Tuesday on its $400 million 9.75 percent Senior Notes due 2015.
We’re in the middle of an urgent project and don’t have time to follow this up, but it seems pretty important. We’ve been hearing about the financial problems at Quebecor, the major printer for Marvel and DC, for sometime, and they are quite serious but a bail out plan has been accepted:
Quebecor World Inc. (TSX: IQW), the struggling commercial printing giant, said late Monday it has accepted the $400 million rescue financing proposal saying it is “in the best interests of the company and its stakeholders.”
Quebecor World said the bid, submitted jointly by Quebecor Inc. and Tricap Partners Ltd., a private equity fund managed by Brookfield Asset Management Inc. (TSX: BAM.A), was reviewed and accepted by a special committee composed of independent directors.
The package, considered a financial life-line at this stage for Quebecor World, was announced Friday to help it avert a cash crunch.
It was subject to several conditions being met, including the consent of Quebecor World and its banking syndicate.
Tricap and Quebecor Inc. will each provide $200 million.
We don’t know what caused Quebecor’s financial problems, but if the mind-bogglingly wasteful shipping and packaging on display when they mail us something — a single comic wrapped in four boxes and FedExed — is any example, we can see where the problem lies.