US$
ABWTQ (OTC)
ABH (TSX)
MONTREAL, April 18 /CNW Telbec/ - 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.
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
under the stock symbol ABWTQ.
Forward-Looking Statements
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 long-term interest of the Company, business
continuity and long-term viability, the protection of the value of the
business, the proposed financing commitment, as well as the overall
restructuring plans. 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
negotiate definitive agreements for the proposed financing arrangements, the
ability to obtain additional financing, the ability to obtain court approval
for the 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 Current Report on Form 8-K filed on February 9,
2009. 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.
