This from Bloomberg.....
Quebecor Fails to Reach Accord on $1 Billion Bankruptcy Loan
By Tiffany Kary
March 7 (Bloomberg) -- Quebecor World (USA) Inc., the bankrupt printer of Time and Cosmopolitan magazines, failed to negotiate new terms for a $1 billion loan needed to finance operations in bankruptcy.
U.S. Bankruptcy Judge James Peck in Manhattan said today he would give Quebecor another 30 days before hearing its request for the ``debtor-in-possession'' or DIP loan. Such loans are routinely used by bankrupt companies.
``Parties will need some additional time to conclude what appear to be constructive although at this point inconclusive negotiations,'' Peck said in court. Under the bankruptcy code, a 45-day window is usually the limit for approval of a final loan agreement after an interim loan is approved.
Quebecor, which filed for bankruptcy in both Canada and the U.S. on Jan. 21, won interim approval Jan. 23 to borrow $750 million under the loan, made by a group of investors through lead arrangers Credit Suisse Group and Morgan Stanley.
Quebecor's noteholders and unsecured creditors said they wanted the loan revised, because its original draft gives the lenders too much power as well as undetermined fees.
The lenders said the agreement was the best possible arrangement amid tightening credit markets.
The case is In re Quebecor World (USA) Inc., 08-10152, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
To contact the reporter on this story: Tiffany Kary in New York bankruptcy court at tkary@bloomberg.net.