Quebecor World to Suspend Dividends on Preferred Shares
Press release from the issuing company
November 26, 2007 -- Montréal, Canada – Quebecor World Inc. announced today that it is suspending dividend payments on its Series 3 and Series 5 Preferred Shares. While the Company has the funds available to pay such dividends, it has been advised by counsel that as a result of recent developments, the Company may be prevented from paying dividends to holders of its preferred shares because it may not satisfy the applicable capital adequacy test contained in the Canada Business Corporations Act («CBCA»). In order to rectify this situation, the Company intends to propose to its shareholders at its next annual shareholders meeting scheduled for May 2008 a reduction of stated capital as permitted under the CBCA to allow the Company to resume paying dividends, including accrued, unpaid dividends. The Company notes that the dividends on the Series 3 and Series 5 preferred shares (including dividends that were to be paid on December 1, 2007) are cumulative and holders will be entitled to receive unpaid dividends, when declared by the Board of Directors, at such time as the Company is permitted to resume the payment of dividends.
The Company also announced that one of its directors, Robert Coallier has resigned from the Board of Directors for personal reasons which are unrelated to the aforementioned announcement.
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