AbitibiBowater's fate to be determined on November 5

The United States Bankruptcy Court are set to hear oral arguments on AbitibiBowater's fate on November 5.

In the last 6 weeks, the U.S. bankruptcy court has examined AbitibiBowater's restructuring plan, and has heard varied objections to the restructuring, including concerns about a bonus plan for AbitibiBowater executives.

AbitibiBowater plans to award $6 million in bonuses to 50 executives. It also wants access to 8.5% of the new company's stock as incentive awards that would be worth US$206 million.

"How can a plan that rewards such poor management performance and more hazard be confirmed in a court of law whose foundation is fairness and justice?" wrote John Haack, an American noteholder of Canadian subsidiary Abitibi-Consolidated.

The restructuring plan allows AbitibiBowater to secure up to US$2.3 billion in loans minus cash on hand.

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AbitibiBowater restructuring decision approaching in U.S. bankruptcy court (Canadian Press)