Predictably, the Canadian printing giant Quebecor World has received a life line from their corporate owner Queborcor Inc and private equity firm Tricap Partners. Quebecor will receive $400mm in funding which will enable the company to focus on an operating and financial reorganization. Quebecor is by no means out of the woods as they are carrying an estimated $2.5billion in debt and they have some significant operating issues to address.
Some analysts had suggested that declaring bankruptcy would have been both a better course of action and a recognition of the inevitable. Management and the primary owner believed bankruptcy to be the worse possible option. According to The Canadian Press, Tricap has been involved in a similar rescue in Canada when they stepped in to provide funds for Steelco which was in administration at the time.
Globe and Mail - Updated