The Globe and Mail is reporting that The Economist magazine wants to terminate its agreement with Quebecor World to print its publication in the United States:

The notice comes on the heels of a decision last month by Rogers Communications Inc. to move all of its magazine printing business from Quebecor World to rival Transcontinental Inc.

In a motion filed in U.S. Bankruptcy Court in the Southern District of New York, lawyers for Economist Newspaper NA Inc. are seeking permission to lift a stay under Chapter 11 bankruptcy rules.

Lifting the stay would allow The Economist to give Quebecor World notice at the end of the month that it does not want to extend its printing contract beyond the early fall of 2008.

The filing says flatly that The Economist "desires to terminate the printing agreement effective at the end of the initial term by providing Quebecor World (USA) with a written notice of termination on or before March 31, 2008."

Quebecor World is under a court-ordered bankruptcy protection from creditors and has been attempting to restructure since last November.

Update Quebecor World has put out a press release to clarify media reports:

Montréal, Canada March 20, 2008 - Quebecor World Inc. and The Economist Newspaper N.A., publisher of The Economist magazine would like to clarify media reports with respect to The Economist's decision to exercise its contractual rights with Quebecor World by notifying Quebecor World that it intends for the Print Agreement to terminate at the expiration of the initial term in September 2008. This notice does not mean that Quebecor World will cease to be an important supplier to The Economist.

The printing agreement continues in force until the end of September 2008 and the two parties will be discussing mutually agreeable terms and conditions to enable this partnership to continue in the future.

"We understand and respect the decision taken by The Economist and we will continue to provide them with the top quality product and service they expect from Quebecor World. We will also work with them in the coming months to prolong and extend our mutually beneficial partnership," said Doron Grosman, President Quebecor World Magazine Group.

"Quebecor World continues to be a trusted and valuable supplier of ours. They have been a large part of our success and growth in the U.S. market and we look forward to discussing how we can continue our relationship," said Mark Suster, Vice President, Finance and Operations, The Economist.