AbitibiBowater shareholder eyes 5% equity distribution under plan

By Caroline Salls

Pittsburgh, Dec. 6 - AbitibiBowater Inc. shareholder Peter I. Shah asked the U.S. Bankruptcy Court for the District of Delaware to order the company to make a "minor modification" to its confirmed plan of reorganization to include a 5% distribution for shareholders, according to a Monday court filing.

"Without any industry expert valuation report and without holding a single valuation hearing, wiping out holders completely of their life savings is absolutely unfair and completely unjust and must be avoided in all circumstances," Shah said in his motion.

Shah said his motion is based on three plan-related issues, including:

• Shareholders are the owners of the company, and their testimony on the value of the company's property should be given extra weight;

• If the court attaches value to AbitibiBowater timber and related rights, there is a possibility that equity could be "in the money;" and

• The equity holders are in the money in connection with at least nine entities described in the company's disclosure statement.

As previously reported, AbitibiBowater's plan was confirmed in November, and the company expects to emerge from bankruptcy this month.

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

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