AbitibiBowater Responds To Proposed $100 Million Investissement Québec Guarantee
US$
Company to negotiate terms with bank
MONTREAL, April 17 /CNW Telbec/ - AbitibiBowater Inc. ("AbitibiBowater")
and its Abitibi-Consolidated Inc. ("Abitibi") subsidiary today responded to
the announcement by Investissement Québec regarding its intention to guarantee
a maximum amount of $100 million of supplemental funding to Abitibi through a
credit facility to be put in place by a Canadian bank (the "Lender"). The
proposed financing and guarantee is subject to the approval of the Courts in
Canada as well as negotiation of specific terms with the Lender and
Investissement Québec and execution of definitive agreements.
"AbitibiBowater and its employees appreciate the confidence in our
restructuring initiatives and the ongoing demonstration of support and
collaboration shown by Investissement Québec and the Québec government,"
stated David J. Paterson, President and Chief Executive Officer. "The
supplemental funds proposed to be guaranteed by Investissement Québec will
support AbitibiBowater's business continuity by providing additional
short-term liquidity while we continue to address our restructuring program
and support our business continuity."
Additionally, the Company confirmed its intention to continue working
towards a rapid conclusion of the previously announced sale of
AbitibiBowater's 60 percent interest in its Manicouagan Hydroelectric Facility
for gross proceeds of C$615 million.
"The Québec government's commitment to the MPCo transaction is a key step
in AbitibiBowater's overall plan to ensure greater liquidity and financial
flexibility," added David J. Paterson.
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.
Forward-Looking Statements
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Statements in this report 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 proposed financing by Investissement Québec,
business continuity, the conclusion of the sale of the 60% interest in
Manicouagan Hydroelectric Facility, as well as our overall restructuring
plans. Forward-looking statements may be identified by the use of
forward-looking terminology such as the words "will," "intend," "may,"
"believe," and "expect" and other terms with similar meaning indicating
possible future events or potential impact on the business or other
stakeholders of the Company 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 under terms and conditions acceptable to the Company, 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 of the Company, the
ability to conclude the sale of our 60% interest in Manicouagan Hydroelectric
Facility and the condition of the U.S. credit and capital markets generally.
Additional factors are detailed from time to time in the Company's
filings with the Securities and Exchange Commission (SEC) and the Canadian
securities regulatory authorities, including those factors contained in the
Company's Annual Report on Form 10-K, as amended, for year ended December 31,
2007 and Current Report on Form 8-K dated February 9, 2009, each under the
caption "Risk Factors." All forward-looking statements in this report are
expressly qualified by information contained in the Company's filings with the
SEC and the Canadian securities regulatory authorities. The Company disclaims
any obligation to update or revise any forward-looking information.
