Quebecor World Advised to Stop the Presses

Quebecor World Inc. (IQW) is racing to avoid bankruptcy given deadlines of Jan. 15 to secure $125-million in new financing and until the end of the month to refinance its credit facility debt. The requirement to reduce the troubled commercial printer’s current credit facility to $500-million by Feb. 29 comes from both its banking syndicate and the sponsors of its North American securitization program.

Last week, Quebecor World acknowledged that it may not secure the necessary financing. Gimme Credit’s Shelly Lombard seems to agree with this outlook, calling the deadlines “seemingly impossible.” The analyst even joked that Quebecor World might need to use its presses to print money rather than magazines.

She also suggested that the banks may be attempting force 36% owner (85% control) Quebecor Inc. to either put up some cash or sell Quebecor World. Ms. Lombard also said there is a small chance its bonds could be taken out, with firms like Cerberus, KKR (KKR), and RR Donnelley (RRD) rumored to be considering buying the company.