AbitibiBowater gets plan confirmation; emergence expected in December

By Jennifer Chiou

New York, Nov. 22 - AbitibiBowater Inc. announced that the U.S. Bankruptcy Court for the District of Delaware has issued an opinion confirming its plan of reorganization under Chapter 11.

The company said in a news release that this clears the way for its emergence from creditor protection, adding that it expects to emerge and have its plan become effective in December.

AbitibiBowater noted that the court also issued an order overruling objections to the U.S. plan.

President and chief executive officer David J. Paterson stated in the release: "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."

On Nov. 19, the company said it entered into agreements with the government of Ontario related to funding relief for material solvency deficits in company-sponsored pension plans in Ontario and Quebec. The agreements are to enable it to seek the waiver of the conditions regarding the adoption of funding relief regulations.

On Sept. 14, the government of Quebec announced an agreement between the company and the Regie des rentes du Quebec for similar relief measures. The agreements finalized with the provinces of Ontario and Quebec will allow the company to meet its future pension obligations in full to the beneficiaries.

As already reported, a five-year agreement was previously reached by Ontario and AbiBow Canada, which will become one of the company's Canadian subsidiaries after it emerges from bankruptcy.

AbiBow Canada has agreed to apply specific measures regarding its governance and investment levels, as well as the sustainability of its operations in Ontario in connection with its pulp and paper operations in the province.

AbitibiBowater, a Montreal-based producer of newsprint, commercial printing papers, market pulp and wood products, filed for bankruptcy on April 16, 2009 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-11296.

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