The U.S. Bankruptcy Court for the District of Delaware has issued an opinion confirming AbitibiBowater’s plan of reorganization under chapter 11 of the U.S. Bankruptcy Code, clearing the way for the company’s emergence from creditor protection….
The U.S. Bankruptcy Court for the District of Delaware has issued an opinion confirming AbitibiBowater’s plan of reorganization under chapter 11 of the U.S. Bankruptcy Code, clearing the way for the company’s emergence from creditor protection. The court also issued an order overruling objections to the U.S. plan. AbitibiBowater expects to emerge and its plans to become effective in December.
“The restructuring was a challenging process and I am truly proud of all that we have achieved since our filing in April 2009. Once we meet the remaining closing conditions, we will emerge with a business foundation that fundamentally repositions AbitibiBowater,” stated David J. Paterson, president and CEO
He noted that the company will continue to work toward being a leaner, more financially flexible and more competitive organization.
This stage in the creditor protection proceedings follows a number of recent major milestones, including: obtaining the requisite votes of unsecured creditors approving the company’s reorganization plans under the Canadian Companies’ Creditors Arrangement Act (CCAA) and the U.S. Bankruptcy Code; a sanctioning of the plan under CCAA from the Quebec Superior Court; and agreements with the Quebec and Ontario pension regulators.
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