AbitibiBowater shareholder objects to company's reorganization plan

By Lisa Kerner

Charlotte, N.C., Sept. 16 - AbitibiBowater Inc. shareholder Peter I. Shah filed an objection to the company's second amended joint plan of reorganization dated Aug. 2, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

A hearing is set for Sept. 24.

The debtors, though solvent, "seek to disenfranchise, in their entirety, the current owners of the company," the filing said.

If the proposed plan is confirmed, it "would wipe out" 54.6 million shares of the company's common stock "based on erroneous projections and the debtor's concomitantly and separately erroneous valuation."

AbitibiBowater's plan confirmation hearing is also set for Sept. 24.

In August, the court denied Shah's request to reconsider the appointment of an equity committee.

AbitibiBowater and its official committee of unsecured creditors objected to the motion for appointment of an official equity holders committee.

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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