AbitibiBowater says it expects to emerge from bankruptcy in the fall

By Lisa Kerner

Charlotte, N.C., Aug. 2 - AbitibiBowater Inc.'s disclosure statement was approved on Monday, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is set for Sept. 24.

AbitibiBowater also announced that the court approved the company's solicitation materials, allowing the company to begin soliciting votes from creditors to accept or reject its restructuring plans.

The unsecured creditors committee supports the plans and the disclosure documents, according to a company news release.

AbitibiBowater said it expects to begin mailing the solicitation and voting materials on or about Aug. 9. Canadian approval to mail the materials was received in July.

"We are on track to emerge in the fall a stronger, more sustainable company," said president and chief executive officer David J. Paterson.

Prior to emerging from creditor protection, AbitibiBowater must obtain adequate exit financing and complete efforts to address labor costs and pension issues.

The company said its plans will require creditor approval as well as confirmation by the U.S. and Canadian Courts.

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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