Bowater must pay Weyerhaeuser, arbitrators rule
September 18, 2007 By Pulp & Paper Canada
Greenville, SC — Bowater Incorporated has announced that its Canadian subsidiary, Bowater Canadian Forest Products…
Greenville, SC — Bowater Incorporated has announced that its Canadian subsidiary, Bowater Canadian Forest Products, has received a decision in an arbitration case between Bowater and Weyerhaeuser. In the case, relating to the 1998 sale to Weyerhaeuser of Bowater’s former pulp and paper facility in Dryden, ON, the two companies were arbitrating a claim regarding the cost of certain environmental matters. The arbitrators’ decision was returned September 7th stating that Bowater must pay Weyerhaeuser approximately $44 million in the case. The decision is binding and not subject to appeal.
Bowater’s chairman, president and CEO David J. Paterson said “Although we disagree with the arbitrators’ decision and are disappointed with this result, the matter is now behind us.” As a result of this, Bowater currently expects to record a pre-tax charge of approximately $29 million in its third quarter 2007 results.
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