Montreal, Quebec, Canada, 04 May 2010 -- /PRNewswire/ -- AbitibiBowater Inc. today announced that the company and certain of its U.S. and Canadian subsidiaries, currently under creditor protection, have filed with courts in Canada and the United States a Debtors' Joint Plan of Reorganization under Chapter 11 of the U.S. Bankruptcy Code and Canadian Companies' Creditors Arrangement Act (CCAA) Plan of Reorganization and Compromise in draft form (together, the plan). These filed documents are available on the company Web site, www.abitibibowater.com. The plan is a framework for the final forms expected to be filed in the near term and is not being filed for the purpose of soliciting votes and remains subject to finalization. The company intends to file with the courts an amended Plan containing more detailed economic terms, along with disclosure documents and proxy materials providing information on the Plan and voting procedures.
A classification scheme and resultant forms of recoveries for all company creditors is proposed in the plan. It specifies that non-disputed prepetition secured, administrative, debtor-in-possession and other priority claims would be paid in full in cash, or satisfied as otherwise agreed, at emergence. Unsecured claims would receive a pro rata share of equity in the reorganized company upon emergence, subject to certain conditions. Details on the extent of recovery for unsecured creditors will be outlined in forthcoming disclosures. The plan also provides that the company's current common stock will be cancelled and holders will receive no recoveries.
"The filing of these documents is an important step in AbitibiBowater's creditor protection proceedings and a precursor to a key milestone we intend to reach in the near future with the filing of the plan's disclosure documents and proxy materials," said David J. Paterson, president and chief executive officer. "While we recognize the consequences this plan outlines for our current common stockholders, this result was necessary in order to meet our overall obligations to creditors and effectively restructure for the future."
Before emerging from creditor protection, the company must secure adequate exit financing and complete efforts to address labor costs and pension issues, as well as satisfy other conditions set forth in the plan. Prior to emergence, a new board of directors will also be designated for the company. The plan will ultimately require approval by the creditors and the courts.
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 22 pulp and paper facilities and 26 wood products facilities located in the United States, Canada, 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 and on the OTC Bulletin Board under the stock symbol ABWTQ.