News Releases

    • AbitibiBowater responds to Steelhead and Fairfax financing proposal
          Company seeks support from Bowater's banks to achieve successful outcome
          ABH (NYSE, TSX)
          MONTREAL, April 2 /CNW Telbec/ - AbitibiBowater Inc. ("AbitibiBowater")
      and its Bowater Incorporated ("Bowater") subsidiary today responded to the
      announcement by Steelhead Partners, LLC and Fairfax Financial Holdings Limited
      (TSX and NYSE: FFH) regarding their intention to negotiate to arrange an
      aggregate of at least $50 million of additional funding to Bowater through
      Bowater's U.S. credit facility. The proposed financing is subject to
      negotiation of specific terms with the lending syndicate participating in
      Bowater's credit facility and execution of definitive agreements.
          "We appreciate Steelhead's and Fairfax's confidence and willingness to
      support our restructuring initiatives. AbitibiBowater's efforts will now be
      directed at obtaining support from our banks to bring Steelhead and Fairfax
      into our lending syndicate," stated William G. Harvey, Senior Vice President
      and Chief Financial Officer. "We believe the additional funds proposed to be
      made available by Steelhead and Fairfax would provide us with sufficient
      short-term liquidity while we continue to address our restructuring of
      Bowater's debt. The approval from and support of our banks in this process is
      a crucial step to a successful outcome."
          AbitibiBowater produces a wide range of newsprint and 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, AbitibiBowater is also among the
      world's largest recyclers of newspapers and magazines, and has third-party
      certified 100% of its managed woodlands to sustainable forest management
      standards. AbitibiBowater's shares trade under the stock symbol ABH on both
      the New York Stock Exchange and the Toronto Stock Exchange.
          Forward-Looking Statements
          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 additional funding by of Steelhead
      and Fairfax through Bowater's bank credit facility and the expected impact on
      our short-term liquidity, 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 funding with the lending
      syndicate participating in Bowater's credit 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.
      For further information:
      For further information: For Investors: Duane Owens, Vice President,
      Finance, (864) 282-9488; For Media: Seth Kursman, Vice President,
      Communications and Government Affairs, (514) 394-2398,