Quebecor World's Restructuring Plan Finds Resistance
The U.S. government asked a bankruptcy judge to deny Quebecor World's plan to exit bankruptcy tomorrow because of unpaid taxes and environmental penalties. The government said the plan lets a number of third parties off the hook for claims and liabilities, including $150 million in penalties to the Environmental Protection Agency and more than $10 million in unpaid corporate taxes owed to the Internal Revenue Service.
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.
The 100,000-sq.ft. Frederick County plant produces advertising inserts for national retail chains such as Rite Aid, Lowe's and Best Buy.
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