AbitibiBowater Emerges From Creditor Protection
Montreal, Quebec, Canada, 09 December 2010 -- AbitibiBowater is pleased to announce that it has successfully completed its reorganization and has emerged from creditor protection under the Companies’ Creditors Protection Act (CCAA) in Canada and Chapter 11 of the U.S. Bankruptcy Code. “Through our restructuring efforts, we have transformed this organization and given AbitibiBowater a new future -- one driven by a company-wide commitment to profitability and sustainability,” said David J. Paterson, president and chief executive officer. "By strengthening our competitiveness and dramatically improving our financial position, AbitibiBowater has become one of the lowest cost forest products companies in North America. We are now a leaner, more flexible organization with a balanced product portfolio, better able to create value for our stakeholders while responding to the challenges of a tough industry with ongoing market volatility." Emergence from creditor protection represents the culmination of efforts that were undertaken shortly after the combination of Abitibi-Consolidated Inc. and Bowater Incorporated to address fundamental changes in the marketplace. Since 2007, the company has restructured itself financially and operationally in ways that have dramatically lowered its breakeven point, in the following ways:
“The restructuring process has tested the strength of our relations with our employees, unions, business partners, and the communities where we live and do business. We will work hard to renew positive relationships and build goodwill through a commitment to be profitable as well as environmentally and socially responsible,” said Pierre Rougeau, executive vice president, Operations and Sales. The path for AbitibiBowater to emerge from creditor protection was set in motion following the entry of a confirmation order for the company’s Chapter 11 plan of reorganization by the U.S. Bankruptcy Court for the District of Delaware and the sanction of the company's CCAA plan of reorganization by the Quebec Superior Court on 23 November and 23 September 2010, respectively. AbitibiBowater has closed CAD 1.45 billion in exit financing facilities that will be used to repay remaining debtor-in-possession credit facilities, honor obligations to secured creditors, make other payments required upon exit from creditor protection, and increase its already strong liquidity position. On or about 17 December 2010, the company will make certain initial distributions to unsecured creditors in the form of new shares of AbitibiBowater common stock in payment of allowed creditor claims. Subject to official notice of issuance, the new shares will be listed on the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSX). Trading on the NYSE and TSX is expected to begin on 10 December 2010, on a “when issued” basis under the symbol “ABH WI,” and regular trading is anticipated to begin on 20 December 2010, the date of the initial distribution to unsecured creditors, under the symbol “ABH.” More information regarding AbitibiBowater’s completion of the reorganization and financial restructuring process is available at www.abitibibowater.com/emergence. AbitibiBowater is a global leader in the forest products industry, producing a diverse range of products, including newsprint, commercial printing, and packaging papers; market pulp; and wood products. The company owns or operates 18 pulp and paper mills and 24 wood products facilities in the United States, Canada, and South Korea. Marketing its products in more than 70 countries, AbitibiBowater is also among the largest recyclers of old newspapers and magazines in North America, and has third-party certified 100% of its managed woodlands to sustainable forest management standards.
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