AbitibiBowater returns $133 million

AbitibiBowater is thanking a "very favourable financing environment" for their ability to return $133 million to bondholders who had chipped in for AbitibiBowater's bankrupty-exit financing.

The company has signed up an $850 million senior secured loan at 10.25% interest and "continues to progress" in landing a $600 million revolving loan that will provide operating cash.

As a result, AbitbiBowater is reducing its planned offering of convertible notes to zero and will return the money creditors sent in to subscribe.

Unsecured Creditors

Unsecured creditors now can rate their chances of recovering their loss depending on which branch of AbitibiBowater owes them money.

Unsecured creditors of Abitibi-Consolidated Corp. will get a recovery of about 12% on $656 million of debt.

Unsecured creditors of Bowater Inc., owed $2.7 billion, will see a recovery of about 48.4%.

Read more:

'Favorable' Loan Market Lets AbitibiBowater Return $133M (The Wall Street Journal)