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Investment firm offers to provide AbitibiBowater with $50 million of additional funding

AbitibiBowater Inc. and its Bowater Inc. subsidiary today responded to the announcement by Steelhead Partners, LLC …

AbitibiBowater Inc. and its Bowater Inc. subsidiary today responded to the announcement by Steelhead Partners, LLC and Fairfax Financial Holdings Limited regarding their intention to negotiate to arrange an aggregate of at least $50 million of additional funding to Bowater through Bowater’s U.S. credit facility. The proposed financing is subject to negotiation of specific terms with the lending syndicate participating in Bowater’s credit facility and execution of definitive agreements.

“We appreciate Steelhead’s and Fairfax’s confidence and willingness to support our restructuring initiatives. AbitibiBowater’s efforts will now be directed at obtaining support from our banks to bring Steelhead and Fairfax into our lending syndicate,” states William G. Harvey, senior vice-president and chief financial officer. “We believe the additional funds proposed to be made available by Steelhead and Fairfax would provide us with sufficient short-term liquidity while we continue to address our restructuring of Bowater’s debt. The approval from and support of our banks in this process is a crucial step to a successful outcome.”

AbitibiBowater produces a wide range of newsprint and commercial printing papers, market pulp and wood products. AbitibiBowater owns or operates 23 pulp and paper facilities and 30 wood products facilities located in the United States, Canada, the United Kingdom and South Korea.