The Canadian firm, which is in creditor protection after effectively going bust in January, posted post-tax charges for the year of $2.1bn, which included impairment of goodwill, a drop in the value of its assets and restructuring costs.

The huge loss compared to a relatively slim net profit of $28.3m in 2006. Turnover dropped year-on-year by $400m to $5.7bn.

The firm blamed the fall in turnover on a reduction in volumes in North America, where it has closed a number of plants as part of a three-year restructure.

However, the company, whose UK plant in Corby closed in February after being placed into administration, has said it is shaping up to rebound from its current weak position.

In its results statement posted yesterday, Quebecor World announced that it had been granted the $1bn debtor-in-possession financing that it requested following its collapse into creditor protection.

It now has "unrestricted cash balances" of $160m and the use of a revolving credit facility of $400m, and has also appointed a chief restructuring officer, Randy Benson.

In a statement, Jacques Mallette, the firm's president and chief executive, said: "We have made important and substantial efforts to stabilise our business.

"The restructuring process is proceeding as planned. We have passed several important milestones and we are actively developing our five-year business plan, which we expect to be completed in the second quarter.

"To date, we have had more than 60 uncontested motions approved in the US process, which is a strong indication of everyone's focus and determination to make this process a success by exiting creditor protection as soon as possible."