Montreal, Quebec, Canada, 07 May 2009 -- /PRNewswire/ -- AbitibiBowater Inc. and its Abitibi-Consolidated Inc. (Abitibi) subsidiary today announced that an order from the Quebec Superior Court in Canada has been obtained authorizing Abitibi to enter into a loan agreement with Bank of Montreal for debtor-in-possession (DIP) financing, which will be guaranteed by Investissement Quebec. The Abitibi DIP agreement will support AbitibiBowater's business continuity by providing additional short-term liquidity while the company continues to develop its restructuring plan.
The Abitibi DIP agreement will be among Abitibi, as borrower, and Bank of Montreal, as lender, and will be guaranteed by Investissement Quebec, as sponsor. The Abitibi DIP agreement will provide for borrowings in an aggregate principal amount of up to CAD 100 million for Abitibi, of which a minimum undrawn availability of CAD 12.5 million must be maintained at all times.
The outstanding principal amount of loans under the DIP facility, plus accrued and unpaid interest, will be payable in full at the earliest of 01 November 2009, the effective date of a plan of reorganization under the Companies' Creditors Arrangement Act in Canada or Chapter 11 of the United States Bankruptcy Code in the U.S., and certain other events.
More information about AbitibiBowater's restructuring process can be found at www.abitibibowater.com or by calling toll-free 888-266-9280. International callers should dial 503-597-7698.
AbitibiBowater produces a wide range of newsprint, commercial printing papers, market pulp, and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world. AbitibiBowater owns or operates 23 pulp and paper facilities and 30 wood products facilities in the United States, Canada, the United Kingdom, and South Korea. Marketing its products in more than 90 countries, the company is also among the world's largest recyclers of old newspapers and magazines, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade over-the-counter on the Pink Sheets under the stock symbol ABWTQ.