MONTREAL – Quebecor Media Inc. and its subsidiaries, which include Videotron and TVA, are not affected in any way by the decision of Quebecor World to seek court protection from creditors, Quebecor Inc. said Monday in a statement.
Quebecor World is an independent company, distinct from the two other entities, and its current situation will have no effect on the normal, continuing operations of Quebecor Inc. and Quebecor Media Inc., stated the company in a media release.
Quebecor Inc., the principal shareholder of Quebecor World, had hoped to avoid having to seek court protection, but the banks rejected the conditions of offer, said Quebecor Inc. president and CEO Pierre Karl Peladeau.
“…Quebecor Inc. decided that it would not be in the interest of its shareholders to pursue further offers that could have increased unreasonably the risks it might assume,” Peladeau said in the media release. “Quebecor and Quebecor Media are both in excellent financial health and the outlooks for the future of the businesses are excellent.”
To avoid confusion in the public, Quebecor Inc. formally advised Quebecor World yesterday to remove “Quebecor” from its corporate name.
Quebecor Inc. announced Monday that “certain key conditions” precedent to its $400 million Rescure Financing Proposal made with Tricap Partners Ltd. to Quebecor World on January 11 were not met by the expiry date.
Specifically, Quebecor World’s lenders under its Senior Secured Credit Agreement and the banks sponsoring the company’s North American securitization facility did not consent to the plan.
As the largest shareholder in Quebecor World, Quebecor Inc. said it will monitor the CCAA and chapter 11 proceedings closely and work with its financial and legal advisors in that regard.
