Business

Quebecor World is facing a make or break week as its lenders assess the viability of a rescue package submitted last Friday to satisfy their demands for its refinancing.

The proposal, which was submitted by Quebecor World’s parent company Quebecor Inc and Tricap partners, a private equity fund managed by Brookfield Asset Management Inc, included a request for an extension of the breach of covenant waiver until 21 January.

The deadline for the bank’s decision loomed as PrintWeek went to press, with some reports claiming creditors have reacted frostily to the package. While the banks consider the offer, speculation is beginning to build as to whether Quebecor World will be forced into a fire sale, which will include a sizable sale of its European operations.

RSDB, whose failed bid for Quebecor Europe was a catalyst for the Canadian firm’s troubles, has said it is still interested in pursuing a deal.

Another potential suitor being suggested is European publishing giant H Bauer, which bought Emap’s consumer magazine division at the end of last year.

Observers have said that such a deal could be attractive for H Bauer as it looks to boost its print capacity.

Andrew Parker, managing director of Quebecor World’s Corby site, said he was optimistic the proposal would be accepted and that it was “business as usual”.