Restructuring of AbitibiBowater could be hampered by environmental claims in Newfoundland & Labrador

The province of Newfoundland and Labrador has issued 5 ministerial environmental claims that order AbitibiBowater to clean several sites.

Some of these sites are still owned by AbitibiBowater but are not in operation, and some of them have been expropriated by the province.

The preliminary estimates for the clean-up of the sites exceed $50 million.

Ernst & Young, court appointed monitor, said in its latest report that the clean-up costs in Newfoundland and Labrador could affect AbitibiBowater's efforts to create a business plan that is acceptable to its creditors and stakeholders.

Read more:
34th Report of the Monitor - February 19, 2010 - Ernst & Young (.pdf)
AbitibiBowater's restructuring at risk by N.L. environmental claims: monitor (Canadian Press)