Quebecor World's Restructuring Plan Finds Resistance

In the court filing, the government argues that Quebecor World's reorganization plan should not be confirmed because it would extinguish virtually all third-party liabilities and leave the government without recourse. It argues in its motion that the proposed releases of third-parties are not essential to the reorganization plan, and that bankruptcy court does not have the authority to release the non-debtors from liability because it lacks the jurisdiction to override various laws and acts covering tax and other claims in other courts of law.

Meanwhile, Quebecor World will invest $35.2 million to expand its printing plant in Frederick County, Va. The facility will add two new printing presses and 30 jobs, and retain 150 employees. Virginia successfully competed with Pennsylvania and Tennessee for the project. Virginia Gov. Timothy Kaine approved a $300,000, performance-based grant from the Virginia Investment Partnership program.