AbitibiBowater has paid off $166 million of its DIP loan

On July 21, AbitibiBowater repaid $166 million of its debtor-in-possession (DIP) loan, leaving $40 million remaining.

AbitibiBowater has said it was able to make the payment due to an improvement in market conditions and operational performance.

The outstanding principal amount, $40 million, has had its maturity date extended to December 31, 2010. The terms have also been altered to allow AbitibiBowater to retain the proceeds from asset sales without triggering a mandatory prepayment. To alter the agreement, AbitibiBowater was required to pay an amendment fee of 0.5% of the aggregate principal amount outstanding before the repayment, or approximately $1 million.

Source: AbitibiBowater