Quebecor World gets court OK to sell Bombardier aircraft

By Rebecca Melvin

New York, May 22 - Quebecor World Inc. obtained approval to sell a Bombardier CL-600-2B16 aircraft to Key Equipment Finance Canada Ltd. from the U.S. Bankruptcy Court for the Southern District of New York on Thursday.

The company had requested court approval to purchase a Bombardier aircraft currently leased by Quebecor debtor Quebecor Printing Aviation Inc. and subsequently sell it.

Based on three purchase offers submitted to Quebecor for the aircraft, the company believes the transaction would result in a pretax profit of $9.4 million.

According to the motion, Quebecor would purchase the aircraft from Wachovia Financial Services, Inc. through an early termination clause included in the lease.

Under the purchase agreement with Key Equipment, Key Equipment will pay a deposit of $500,000 and $20.3 million upon closing of the sale.

Quebecor, a Montreal-based printing and marketing company, filed for Chapter 11 bankruptcy on Jan. 21 in the U.S. Bankruptcy Court for the Southern District of New York and filed for protection under the Companies' Creditors Arrangement Act in Canada. Its Chapter 11 case number is 08-10152.

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