Business News
ABITIBIBOWATER RECEIVES COURT ORDERS IN THE UNITED STATES AND CANADA
Monday 20. April 2009 - AbitibiBowater Inc. ("AbitibiBowater" or the "Company") today announced that further to its press release issued on April 16, 2009, the U.S. Bankruptcy Court for the District of Delaware has granted the relief the Company requested in its "First Day Motions" filed in conjunction with its voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code.
As well, AbitibiBowater and its Canadian subsidiaries have obtained an Order from the Quebec Superior Court in Canada for creditor protection pursuant to the Companies’ Creditors Arrangement Act (“CCAA”). The Delaware and Quebec Courts issued a variety of orders on either a final or interim basis that will support business continuity for AbitibiBowater throughout the restructuring process.
The U.S. and Canadian orders include, among other things, authorization to (1) continue making payments relating to employees’ current wages, salaries and benefit programs in the ordinary course; (2) ensure the continuation of the current cash management systems; (3) honor ongoing customer obligations; (4) enter into financing commitments for debtor-in-possession financing totaling approximately $200 million for certain of its Bowater subsidiaries; and (5) enter into an amendment providing for the continuation of an existing Abitibi-Consolidated subsidiary securitization program for its accounts receivable, in the approximate amount of $210 million. Under the terms of the Canadian Order, Ernst & Young Inc. will serve as the Court-appointed Monitor under the CCAA process and will assist the Company in formulating its restructuring plan.
As a result of these developments, AbitibiBowater’s common shares have been removed from listing by the New York Stock Exchange. In addition, the Company has received a letter from the Toronto Stock Exchange to the effect that trading on its common shares and exchangeable shares had been suspended and would be delisted effective at the close of market on May 15, 2009. The Company is now trading on the Pink Sheets under symbol “ABWTQ”. Shareholders may contact their financial institutions, brokers or financial advisors to obtain more details on trading alternatives including the Pink Sheets.