Montreal, Quebec, Canada, 14 September 2010 -- (Canada NewsWire via COMTEX) -- AbitibiBowater is pleased to announce that the company has received approval for its plan of reorganization from unsecured creditors under the Companies' Creditors Arrangement Act (CCAA) in Canada.
The plan of reorganization received overwhelming support from its unsecured creditors in dollar amount of claims and in number of claim holders who voted on the plan. Having obtained the requisite votes in each class, except with respect to Bowater Canada Finance Corporation (BCFC), a special purpose company subsidiary with no operating assets, AbitibiBowater will seek a sanction order in respect of its CCAA plan other than in respect of BCFC, which is excluded from the CCAA plan. The Company does not believe that the exclusion of BCFC will affect the timing of the company's sanction hearing by the Canadian Court nor does the company expect it will materially delay AbitibiBowater's emergence from creditor protection slated for this fall.
Voting tabulations on the plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code are expected on 20 September 2010. The company will provide further information when the results become available.
"We appreciate the support given by the significant majority of our creditors under the CCAA process for our plan of reorganization," said David J. Paterson, president and chief executive officer. "We are confident our restructuring efforts have created a stronger foundation for a more sustainable and competitive company. We look forward to completing the restructuring process and emerging from creditor protection this fall."
Details of the voting results, including votes on a class-by-class basis, will be available at www.abitibibowater.com/restructuring.
The sanction hearing under the CCAA process is scheduled to occur on 20 September 2010, in the Quebec Superior Court, and the confirmation hearing under the Chapter 11 process is scheduled to start on 24 September 2010, in the U.S. Bankruptcy Court in Delaware.
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 19 pulp and paper facilities and 24 wood products facilities located in the United States, Canada, and South Korea. Marketing its products in more than 70 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.