Newfoundland and Labrador's AbitibiBowater appeal rejected

The province of Newfoundland and Labrador wanted to become a secured creditor of AbitibiBowater to ensure the company pays for the environmental cleanup of sites it once owned in the province.

Their appeal has been rejected by the Quebec Court of Appeal.

Justice Jacques Chamberland said he would not overturn Justice Clement Gascon's original decision because it would give an unfair advantage to Newfoundland and Labrador over the other creditors.

In addition, he said that appeal proceedings would "unduly hinder" AbitibiBowater's efforts to restructure and come out of creditor protection by September.

Newfoundland and Labrador is not surprised by the ruling, but remain disappointed that their tax payers will now be on the hook for as much as $750 million to clean up the mess left behind by AbitibiBowater.

There is an option for the province to ask for consideration as an unsecured creditor.

Read more:

Province's Abitibi appeal rejected - Jones disappointed but not surprised by Quebec ruling