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AbitibiBowater gets go-ahead from courts, pension regulators to exit creditor protection

MONTREAL — AbitibiBowater has cleared the last legal hurdle of its restructuring process. The U.S. Bankruptcy Court for the District of Delaware has confirmed AbitibiBowater’s plan of reorganization …

MONTREAL — AbitibiBowater has cleared the last legal hurdle of its restructuring process. The U.S. Bankruptcy Court for the District of Delaware has confirmed AbitibiBowater’s plan of reorganization under chapter 11 of the U.S. Bankruptcy Code, clearing the way for the papermaker’s emergence from creditor protection in December.

The reorganization plan already has creditor approval in both the U.S. and Canada, and has been approved by the Quebec Superior Court.

AbitibiBowater recently finalized agreements with the government of Ontario related to funding relief for the solvency deficits in its pension plans. The company had earlier reached a similar agreement with the government of Quebec. The agreements will allow the company to meet its future pension obligations to beneficiaries in full.

In addition, the Ontario government has reached a five-year agreement with what will become one of AbitibiBowater’s Canadian subsidiaries post-emergence, AbiBow Canada, regarding investment levels, governance, and sustainability at its pulp and paper operations in the province.

The company directly employs approximately 8,500 workers and has in the order of 20,000 pensioners in Ontario and Quebec.