Deadline looms for AbitibiBowater
March 27, 2009 By Pulp & Paper Canada
AbitibiBowater Inc. has until 5 p.m. Eastern today to reach an agreement with its lenders or possibly face bankrupt…
AbitibiBowater Inc. has until 5 p.m. Eastern today to reach an agreement with its lenders or possibly face bankruptcy filing.
On Wednesday, the company’s U.S. lenders agreed to give AbitibiBowater a third deadline extension to establish a plan to restructure its debt.
This morning, reports by Reuters suggested progress is being made, as Citigroup has reportedly agreed to participate in the restructuring plan.
Citigroup had previously refused to participate in the debt exchange, but has allegedly changed its mind.
In an effort to reduce its $6 billion debt by half, AbitibiBowater is negotiating a proposal with its bond holders to have them invest additional capital in exchange for new debt, stock and warrants.
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