US$
ABH (NYSE, TSX)
MONTREAL, Dec. 17 /CNW Telbec/ - AbitibiBowater announced today that it
will consider all options available to protect the interests of its
stakeholders in the expropriation of its provincial assets and contractual
rights to natural resources by the government of Newfoundland and Labrador,
Canada.
In a statement Tuesday, Premier Danny Williams said the government would
expropriate provincial assets, excluding the Grand Falls paper mill, as well
as all water and land rights to the public and private forestlands
AbitibiBowater manages in the province. The Williams government also indicated
the Company may be paid for its hydro assets with the expropriation but no
commitment has been made to ensure AbitibiBowater obtains proceeds
representing the full value of these operations.
"We are surprised by this course of action, especially given that this
unprecedented expropriation of property rights and assets does not address the
announced closure of the Grand Falls mill and the needs of its 750 employees,"
stated David J. Paterson, President and Chief Executive Officer. "We have
reiterated to the government of Newfoundland and Labrador our intention to
discuss the disposal of our assets and rights in an orderly manner, while
protecting the best interests of our shareholders, debt holders, employees and
all other Company stakeholders."
On December 15, 2008, AbitibiBowater responded to the recent government
request to surrender Company rights and recommended setting up a joint working
group to address issues related to the closure of the Grand Falls mill and the
Company's overall presence in the province. Given this most recent
development, AbitibiBowater will review its options, including all legal
recourses. The Company will also assess how these announced measures apply
within the framework of U.S.-Canada trade relations.
The Company had previously announced the permanent closure of its Grand
Falls facility by the end of the first quarter of 2009.
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 25 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 more third-party
certified sustainable forest land than any other company in the world.
AbitibiBowater's shares trade under the stock symbol ABH on both the New York
Stock Exchange and the Toronto Stock Exchange.
