AbitibiBowater wants to borrow $1.35 billion to exit from bankruptcy protection

AbitibiBowater is seeking approval to borrow $1.35 billion to exit from bankruptcy protection.

However, AbitibiBowater wants the fees for borrowing the $1.35 billion kept confidential. The arranging banks are JPMorgan Chase, Barclays Plc, and Citigroup Inc. AbitibiBowater's filing on Friday said, "Each firm takes great care to ensure that its fee arrangements are kept strictly confidential because public disclosure of fee arrangements would create a disadvantage for each firm in its negotiations with other clients whose fees may be calculated differently."

The company hopes to take advantage of a recent recovery in the high-yield bond market to borrow the majority of the money by selling notes.

AbitibiBowater wants to borrow the money to help pay off $1.1 billion of secured, prebankruptcy debt.

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Abitibi seeks $1.35 billion finance, fees under wraps (Reuters)