Quebecor makes a preliminary response to the collapse of the printing unit's stock price by suspending payment of dividends on preferred shares. This may signal intention of the parent company and PKP that they intend to retain ownership of Quebecor World.
According to the Globe and Mail here, Quebecor World is seeking to convert its revolving credit facility into a term loan. This is the scenario by which they finesse their cash crunch by tapping out their existing reserves. This, however, will be a drag on earnings until improved margins or operating results allow the principal to be paid down.
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