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AbitibiBowater Pursues New Restructuring Alternatives


April 1, 2009
By Pulp & Paper Canada

MONTREAL — AbitibiBowater Inc. announced in early April that the company is evaluating new restructuring alternatives and is currently in active discussions with lenders and debt holders of its Bowat…

MONTREAL — AbitibiBowater Inc. announced in early April that the company is evaluating new restructuring alternatives and is currently in active discussions with lenders and debt holders of its Bowater Inc. subsidiary to restructure Bowater’s debt and implement alternatives for maintaining adequate liquidity levels. These developments follow the expiration and termination of Bowater’s previously announced exchange offers. “We are optimistic that we will be able to work constructively with all of our lenders, debt holders and other constituencies to successfully implement an alternative restructuring of our overall debt,” states David J. Paterson, president and CEO.

According to a Reuters report on April 7, some of AbitibiBowater lenders have granted its Abitibi-Consolidated unit a waiver, after it failed to meet the requirements under a $210 million receivables purchase agreement. The waiver and amendment granted by Citibank and Eureka Securitisation extends the termination date of the loan to Sept. 1.

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