AbitibiBowater seeking approval for reorganization plan
August 6, 2010 By Pulp & Paper Canada
With court approvals from both Canada and the U.S. in place, AbitibiBowater can now start soliciting votes fro…
With court approvals from both Canada and the U.S. in place, AbitibiBowater can now start soliciting votes from creditors to accept or reject its restructuring plans. The company expects to begin mailing the solicitation and voting materials in connection with the creditor protection proceedings to its unsecured creditors, including employees, on or about August 9, 2010.
The unsecured creditors committee supports the plans and the disclosure documents.
“These developments signal significant progress in AbitibiBowater’s restructuring process,” stated David J. Paterson, president and CEO. “We are on track to emerge in the fall a stronger, more sustainable company.”
Before emerging from creditor protection, the company must obtain adequate exit financing and complete efforts to address labor costs and pension issues, as well as satisfy other conditions set forth in the plans of reorganization. Ultimately, the company’s plans of reorganization will require creditor approval and confirmation by the U.S. and Canadian Courts.
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