Montreal, Quebec, Canada, 02 August 2010 -- /PRNewswire/ -- AbitibiBowater announced today that in connection with the company's ongoing creditor protection proceedings, on 02 August 2010, the U.S. Bankruptcy Court for the District of Delaware approved the company's solicitation materials for its U.S. plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code.
On 09 July 2010, the company had obtained the Québec Superior Court's approval for the mailing of solicitation materials and related disclosure documents for its plan of reorganization under the companies' Creditors Arrangement Act (CCAA). These approvals now enable AbitibiBowater to start soliciting votes from creditors to accept or reject its restructuring plans, in accordance with the applicable court orders.
The unsecured creditors committee supports the plans and the disclosure documents. The company expects to begin mailing the solicitation and voting materials in connection with the creditor protection proceedings to its unsecured creditors, including employees, on or about 09 August 2010.
"These developments signal significant progress in AbitibiBowater's restructuring process," said David J. Paterson, president and chief executive officer. "We are on track to emerge in the fall a stronger, more sustainable company."
Before emerging from creditor protection, the company must obtain adequate exit financing and complete efforts to address labor costs and pension issues, as well as satisfy other conditions set forth in the plans of reorganization. Ultimately, the company's plans of reorganization will require creditor approval and confirmation by the U.S. and Canadian Courts.
More information about AbitibiBowater's restructuring process can be found at www.abitibibowater.com.
AbitibiBowater produces a wide range of newsprint, commercial printing, and packaging papers; market pulp; and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world. AbitibiBowater owns or operates 21 pulp and paper facilities and 24 wood products facilities located in the United States, Canada, and South Korea. Marketing its products in more than 90 countries, the company also is 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 and on the OTC Bulletin Board under the stock symbol ABWTQ.