Quebecor Watch (3)

Quebecor Inc. not selling yet, according to this latest article from Globe and Mail

Quebecor Inc. has ruled out an immediate sale or merger of its struggling commercial printer subsidiary, Quebecor World Inc.

Quebecor World's parent signalled its intention to maintain its 26-per-cent stake in the company as the printer continued to be buffeted by a cash crunch that has bruised the stock. In its latest move to conserve cash, Quebecor World suspended payments on its preferred shares yesterday and a person familiar with talks with the company's bankers said it is urging them to help ease the pressure.

For a summary of options open to Quebecor World, read this recap from the reportonbusiness.com.

The upshot is that there's not enough cash to pay everyone, especially the lowly common shareholder. Quebecor had a refinancing plan involving debt and equity but was forced to pull it this month because of difficult markets. Last year it cut the common dividend and it just halted dividend payments on a series of preferred stock.