AbitibiBowater receives another extension to restructure debt
March 31, 2009 By Pulp & Paper Canada
AbitibiBowater Inc. has received another extension in which to restructure the debt of its U.S. subsidiary. The Mon…
AbitibiBowater Inc. has received another extension in which to restructure the debt of its U.S. subsidiary. The Montreal-based newsprint company said it has until 11:59 p.m. tonight to complete the debt exchange. The company’s previous deadline passed on Friday.
According to a Canadian Press report, the company is struggling to restructure $1.8-billion (U.S.) worth of debt acquired when Abitibi Consolidated merged with North Carolina’s Bowater Inc. in 2007. Refinancing Bowater’s debt is one of the requirements for a $2.9-billion recapitalization of its Canadian subsidiary. Failure would likely result in the company seeking bankruptcy protection.
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