MONTREAL (AFP) -- Canadian printing giant Quebecor World said a court agreed to shield it from bankruptcy Monday, granting protection from its creditors as it seeks to rebuild its battered finances.

The world's second biggest printing company, which prints mass-sellers such as the Harry Potter books in Canada and People magazine in the United States, said the Quebec high court granted its request for protection.
The court's approval applies only to the North America operations of Quebecor World, which employs 28,000 people worldwide.
It owes two billion dollars of debt and saw its position worsen in December when the planned sale of its European branch fell through.
The company said in an earlier statement that a 400 million Canadian dollar (387 million U.S. dollar) rescue package with parent company Quebecor Inc. and Tricap Partners was rejected by its lenders, forcing it to seek protection.
U.S. bankruptcy
It said it would also file under the U.S. bankruptcy rules in New York ""for the long-term interests of the company, its employees, customers, creditors and other stakeholders.""
""These steps allow the company to continue operating as a going concern for the benefit of all those affected including our many loyal employees, customers and suppliers,"" said chief executive Jacques Mallette.
Quebecor World said it had obtained one billion dollars in new financing from Credit Suisse and Morgan Stanley, which it said will allow it to meet all current operating needs, including wages and benefits.
This funding has yet to be approved by the courts.
Mallette said the move Monday ""is the result of industry pressures, particularly in Europe, combined with the inability of the company to raise new capital in the current market environment and the inability to complete the sale of its European operations.
""The steps we initiate today will allow the company to make changes which are necessary to ensure the long-term viability of the company within a process that ensures fair and equitable treatment for all stakeholders."" Quebecor World stocks plunged by more than half to 0.16 dollars on the Toronto Stock Exchange Monday. Shares were worth 17 dollars each in February 2007, and passed the 40-dollar mark five years ago.
Quebecor Inc. assured investors that its other listed division, Quebecor Media Inc, was not affected by its sister firm's problems.