AbitibiBowater U.S. Plan of Reorganization Confirmed
MONTREAL—Nov. 22, 2010—AbitibiBowater is pleased to announce that 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 today overruling objections to the U.S. plan. AbitibiBowater expects to emerge from Chapter 11 and its reorganization plans to become effective in December.
“Today is an exciting day in the transformation of AbitibiBowater,” stated David J. Paterson, president and CEO. “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.”
“We would not be here today without the dedication, loyalty and perseverance of our employees, the vision and guidance of our leadership team, the steadfast loyalty of our customers and suppliers, as well as the support of governments and the communities in which we operate. To you, and all of our stakeholders, thank you," added Paterson. “We look forward to working with everyone to continue to shape AbitibiBowater as a leaner, 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.
The confirmation opinion issued by the U.S. Bankruptcy Court will be available through www.abitibibowater.com/restructuring. The sanction order rendered by the Quebec Superior Court on the Company's CCAA reorganization plan can also be found at this same website address.
AbitibiBowater produces a wide range of newsprint, commercial printing and packaging papers, market pulp and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world. AbitibiBowater owns or operates 19 pulp and paper facilities and 24 wood products facilities located in the United States, Canada and South Korea. Marketing its products in more than 70 countries, the Company is also among the world's largest recyclers of old newspapers and magazines, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade over-the-counter on the Pink Sheets and on the OTC Bulletin Board under the stock symbol ABWTQ.
Source: Company press release.