MONTREAL, June 17 /CNW Telbec/ - AbitibiBowater Inc. ("the Company")
today announced that it has completed an amendment and restating of its
existing accounts receivable securitization program for the Company's
Abitibi-Consolidated subsidiary. The amended US$270 million program, which
Citibank, N.A. and Barclays Capital Inc. led as joint lead arrangers, provides
the Company with the liquidity necessary to conduct ongoing business
operations during AbitibiBowater's restructuring and allows the previously
court-authorized sale of receivables and related rights to continue.
"Completing the amendment to this securitization program is an important
milestone as we work through the stabilization period of the Company's
restructuring process," stated David J. Paterson, President and Chief
Executive Officer. "We appreciate the confidence shown by our financial
partners as AbitibiBowater strives to emerge, as rapidly as possible, from the
creditor protection filings a stronger, more sustainable organization."
The Company had obtained an interim court order in the U.S. as well as a
Canadian court order authorizing Abitibi-Consolidated to enter into an amended
and restated securitization program.
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 located
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
and on the OTC Bulletin Board under the stock symbol ABWTQ.
Statements in this press release that are not reported financial results
or other historical information are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. They include,
for example, statements about the restructuring process of the Company, the
sustainability of the business, as well as a rapid emergence from creditor
protection procedures. Forward-looking statements may be identified by the use
of forward-looking terminology such as the words "expect", "ensure",
"believe", "will", and other terms with similar meaning indicating possible
future events or potential impact on the business or other stakeholders of
AbitibiBowater and its subsidiaries.
The reader is cautioned not to place undue reliance on these
forward-looking statements, which are not guarantees of future performance.
These statements are based on management's current assumptions, beliefs and
expectations, all of which involve a number of business risks and
uncertainties that could cause actual results to differ materially. These
risks and uncertainties include, but are not limited to, the ability to obtain
additional financing, the ability to continue to meet the needs of our
customers, the ability to meet all current operating needs, including wages,
benefits and other operating expenses, the ability to ensure business
continuity, the ability to protect the value of the business, the ability to
make the necessary changes to ensure the long-term viability and the condition
of the U.S. credit and capital markets generally. Additional factors are
detailed from time to time in AbitibiBowater's and Abitibi-Consolidated's
filings with the Securities and Exchange Commission (SEC), including those
factors contained in AbitibiBowater's Annual Report on Form 10-K for the year
ended December 31, 2008, filed with the SEC on April 30, 2009, under the
caption "Risk factors". All forward-looking statements in this news release
are expressly qualified by information contained in AbitibiBowater's and
Abitibi-Consolidated's filings with the SEC. AbitibiBowater disclaims any
obligation to update or revise any forward-looking information except as
required by law.