September 09, 2009 18:54 ET

Centerbridge Announces Its Holdings in World Color Press Inc.

TORONTO, ONTARIO--(Marketwire - Sept. 9, 2009) - In connection with the reorganization and financial restructuring of World Color Press Inc. ("WCPI", formerly Quebecor World Inc. ("Quebecor")), Centerbridge Credit Partners Master, L.P., together with its joint actors Centerbridge Credit Partners, L.P., Centerbridge Capital Partners Debt Acquisition, L.P., Centerbridge Capital Partners Strategic Debt Acquisition, L.P., and Centerbridge Capital Partners SBS, L.P. (collectively, the "Centerbridge Entities"), acquired ownership of, in the aggregate, 6,810,885 common shares ("Common Shares"), 1,318,684 Class A convertible preferred shares ("Preferred Shares"), 503,687 series I common share purchase warrants (the "Series I Warrants") and 503,687 series II common share purchase warrants (the "Series II Warrants" and, collectively with Series I Warrants, the "Warrants"), of WCPI pursuant to the Plans (as defined below). The Centerbridge Entities subsequently disposed of 18,000 Common Shares to hold, in the aggregate, 6,792,885 Common Shares. The securityholdings of each of the Centerbridge Entities are disclosed in their early warning report dated September 9, 2009.

Each Preferred Share is convertible at the option of the holder into one Common Share (subject to future adjustment in certain circumstances). Subject to certain conditions set out in the warrant indenture under which the Warrants were issued, each Warrant is exercisable into one Common Share (subject to future adjustment in certain circumstances) on or before July 20, 2014.

The 1,318,684 Preferred Shares represent approximately 10.54% of the issued and outstanding Preferred Shares.

Assuming the conversion of all of the Preferred Shares held by the Centerbridge Entities into Common Shares and the exercise of all of the Warrants held by the Centerbridge Entities, the Centerbridge Entities' aggregate securityholding percentage in the Common Shares is approximately 12.06% of the Common Shares that would then be outstanding, calculated on a partially diluted basis.

The Preferred Shares, Common Shares and Warrants (collectively, the "Securities") were issued as a result of the implementation of a plan of reorganization and compromise of Quebecor, as amended and modified, pursuant to the provisions of the Companies' Creditors Arrangement Act (Canada) (the "Canadian Plan") and a U.S. joint plan of reorganization of Quebecor World (USA) Inc., as amended, pursuant to the provisions of Chapter 11 of the US Bankruptcy Code (the "U.S. Plan" and, together with the Canadian Plan, the "Plans"). Pursuant to and in accordance with the Plans, the Securities were issued as settlement of certain indebtedness of Quebecor held by the Centerbridge Entities. The Securities acquired by the Centerbridge Entities include (i) Securities received by the Centerbridge Entities from escrow on August 26, 2009 and September 3, 2009 in accordance with the Plans, and (ii) Securities acquired in connection with the acquisition of certain indebtedness of Quebecor, which acquisitions have not yet settled.

The Securities were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of WCPI. Depending on market and other conditions, the Centerbridge Entities may, from time to time, acquire additional securities of WCPI or may dispose of the Securities, in whole or in part.

Contact Information

  • Centerbridge
    Vivek Melwani
    (212) 672-5000