Jan. 23 (Bloomberg) -- Quebecor World (USA) Inc., the printer of Time and Cosmopolitan magazines and Harry Potter books, said it has until 5 p.m. New York time today to win court permission for a $1 billion loan to keep operating in bankruptcy.

Michael Canning, a lawyer for Quebecor World (USA), told U.S. Bankruptcy Judge James Peck in Manhattan that lead arrangers Credit Suisse Securities and Morgan Stanley set the deadline. The loan offer will expire unless the judge approves it by that time, Canning said.

``We need that financing as quickly as possible,'' Canning said. ``If we don't have it by tomorrow, we can't make payroll and our condition will begin to deteriorate.''

Quebecor World (USA) filed for bankruptcy in the U.S. on Jan. 21. Quebecor World Inc., the unit's Montreal-based parent and North America's second-largest publicly traded printer, won protection from creditors in Quebec Superior Court.

The U.S. unit is seeking permission for the loan and other preliminary motions from Peck today.

The case is In re Quebecor World (USA) Inc., 08-10152, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Tiffany Kary in New York at tkary@bloomberg.net.

Last Updated: January 23, 2008 14:25 EST