AbitibiBowater hopes to be free of court protection on October 1

AbitibiBowater hopes its restructuring plan wins the support of its creditors in late August so the company can escape from bankruptcy court protection on October 1st.

The restructuring plan aims to dramatically reduce the company's massive debt from US$6.5 billion to US$1.6 billion as it pays off secured creditors and debtor-in-possession financing. It will also offer up US$500 million in new convertible notes to eligible unsecured creditors.

AbitibiBowater has already obtained the support of its main bondholders and the unsecured creditors committee in the U.S. The committee's endorsement is particularly significant because it's very rare for a U.S. bankruptcy judge to go against a plan approved by such a committee.

What has AbitibiBowater done to turn things around?

• cut 6,000 employees


• closed or idled 3.4 million tonnes of paper capacity since 2007


• trimmed newspaper production capacity by 36%


• cut commercial paper capacity by 38%


• sold $940 million (US) of assets and land (including its 60 per cent stake in Manicouagan Power Co. for C$615 million)

What do you think, is it enough?

Read more:

Restructured AbitibiBowater could be free of court protection on Oct. 1 (Winnipeg Free Press)