Displaying items by tag: AbitibiBowater

AbitibiBowater has announced that, with the proceeds from the sale of its 75% indirect interest in ACH Limited Partnership, the Company recently redeemed approximately $270 million of its debt. With these disbursements, AbitibiBowater's total debt has been reduced to a face amount of approximately $670 million.

"These recent actions are an important milestone in AbitibiBowater's focus on reducing its debt and associated interest burden," stated Richard Garneau, President and Chief Executive Officer. "Debt reduction is a fundamental part of our strategy to reduce fixed costs and improve the Company's financial position and competitiveness."

The following three debt repayments were made during June 2011:

• $94 million principal at a redemption price of 105%, together with accrued interest, of the $850 million, 10.25% senior secured notes due 2018;
• $85 million principal at a redemption price of 103%, together with accrued interest, of the $850 million, 10.25% senior secured notes due 2018; and
• $90 million principal at par, together with accrued interest, of the Augusta Newsprint Company promissory note - repaid in full.

AbitibiBowater is a global leader in the forest products industry, producing a diverse range of products, including newsprint, commercial printing papers, market pulp and wood products. The Company owns or operates 18 pulp and paper mills and 24 wood products facilities located in the United States, Canada and South Korea. Marketing its products in close to 90 countries, AbitibiBowater is also among the largest recyclers of old newspapers and magazines in North America, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade under the stock symbol ABH on both the New York Stock Exchange and the Toronto Stock Exchange.

AbitibiBowater has announced the closing of the sale of its 75% indirect interest in ACH Limited Partnership ("ACH LP") to a consortium formed by a major Canadian institutional investor and a private Canadian renewable energy company.

"With the sale of our interest in ACH LP, the Company is able to pay off a considerable amount of debt and further improve our financial flexibility. We will continue to focus on reducing AbitibiBowater's debt, and this represents an important step forward in line with our commitment," stated Richard Garneau, President and Chief Executive Officer.

As previously announced, cash proceeds for AbitibiBowater's 75% indirect interest will amount to approximately C$300 million, $185 million of which the Company intends to use to redeem a portion of outstanding 10.25% senior secured notes due 2018, while the balance of proceeds will be used for general corporate purposes. As part of the transaction, ACH LP will maintain its outstanding debt with the Caisse de dépôt et placement du Québec with a face value of C$250 million.

About AbitibiBowater

AbitibiBowater is a global leader in the forest products industry, producing a diverse range of products, including newsprint, commercial printing papers, market pulp and wood products. The Company owns or operates 18 pulp and paper mills and 24 wood products facilities located in the United States, Canada and South Korea. Marketing its products in close to 90 countries, AbitibiBowater is also among the largest recyclers of old newspapers and magazines in North America, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade under the stock symbol ABH on both the New York Stock Exchange and the Toronto Stock Exchange.

Cautionary Statements Regarding Forward-Looking Information

Statements in this press release that are not reported financial results or other historical information of AbitibiBowater Inc. are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. They include, for example, statements relating to intended use of proceeds from the transaction. Forward-looking statements may be identified by the use of forward-looking terminology such as the words "should," "would," "could," "will," "may," "expect," "believe," "anticipate," "attempt," "project" and other terms with similar meaning indicating possible future events or potential impact on our business or AbitibiBowater's shareholders.

The reader is cautioned not to place undue reliance on these forward-looking statements, which are not guarantees of future performance. These statements are based on management's current assumptions, beliefs and expectations, all of which involve a number of business risks and uncertainties that could cause actual results to differ materially. The potential risks and uncertainties that could cause our actual future financial condition, results of operations and performance to differ materially from those expressed or implied in this press release include those set forth under the heading "Risk Factors" in Part I, Item 1A in our annual report on Form 10-K for the year ended December 31, 2010, filed with the United States Securities and Exchange Commission and the Canadian securities regulatory authorities.

All forward-looking statements in this press release are expressly qualified by such cautionary statements. We disclaim any obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

AbitibiBowater Inc. Senior Vice President and Chief Financial Officer William Harvey will speak at the Barclays Capital 2011 High Yield Bond and Syndicated Loan Conference in Orlando, Florida on Thursday, March 24, 2011, at 11:30 a.m. Eastern.

A copy of the presentation and a link to a live audio webcast will be available on the Company's website. Interested parties are invited to use the link provided under "Presentations and Webcasts" on the Investors page of www.abitibibowater.com.

AbitibiBowater is a global leader in the forest products industry, producing a diverse range of products, including newsprint, commercial printing papers, market pulp and wood products. The Company owns or operates 18 pulp and paper mills and 24 wood products facilities located in the United States, Canada and South Korea. Marketing its products in more than 70 countries, AbitibiBowater is also among the largest recyclers of old newspapers and magazines in North America, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade under the stock symbol ABH on both the New York Stock Exchange and the Toronto Stock Exchange.

AbitibiBowater today announced the selection of a new Executive Team, reporting directly to Richard Garneau, President and Chief Executive Officer. This leadership transition includes a number of senior management changes, supporting the Company's execution of its business strategy.

"The Executive Team we have put in place represents an excellent blend of proven experience and fresh thinking. I look forward to working with the team to further improve AbitibiBowater's operational efficiencies and financial flexibility, while offering a broad mix of quality products to our customers globally," stated Richard Garneau. "We believe that with the support of all Company employees, we can deliver on our commitment to further reduce costs and enhance our competitiveness. Working as one team, we can respond to the reality of ongoing market challenges and ensure sustained profitability moving forward."

  In addition to Richard Garneau, AbitibiBowater's Executive Team will be composed of:

Alain Boivin, Senior Vice President, Pulp and Paper Operations. Mr. Boivin most recently was Vice President of Mill Operations, Central Region at Smurfit-Stone Container Corporation and will assume his new responsibilities at AbitibiBowater on March 7, 2011. This role will be managed on an interim basis by David J. Spraley, Senior Vice President, Pulp and Paper Manufacturing, Engineering and Quality. Mr. Boivin served as a Vice President at Smurfit-Stone since 2000. He previously was Senior Vice President, Containerboard Operations for St. Laurent Paperboard Inc. from 1999 to 2000.  Prior to this, Mr. Boivin was Mill Manager at a number of operations for Donohue Inc. and Avenor Inc.

Alain Grandmont, Senior Vice President, Human Resources and Public Affairs. Mr. Grandmont most recently served as Executive Vice President, Human Resources and Supply Chain for AbitibiBowater Inc. He was previously Senior Vice President, Commercial Printing Papers from October 2007 to July 2009. Mr. Grandmont served as Senior Vice President, Commercial Printing Papers of Abitibi-Consolidated Inc. from 2005 to October 2007 and as Senior Vice President, Value-Added Operations and Sales of Abitibi-Consolidated in 2004.

William G. Harvey, Senior Vice President and Chief Financial Officer. Mr. Harvey served most recently as Executive Vice President and Chief Financial Officer for AbitibiBowater Inc. He previously was Senior Vice President and Chief Financial Officer of the Company from October 2007 to July 2009. Mr. Harvey served as Executive Vice President and Chief Financial Officer of Bowater Incorporated from August 2006 to October 2007, and as Senior Vice President and Chief Financial Officer and Treasurer of Bowater from 2005 to 2006.

John Lafave, Senior Vice President, Pulp and Paper Sales and Marketing. Mr. Lafave most recently served as Vice President Sales, National Accounts - Paper Sales for AbitibiBowater Inc. Prior to this, he was Vice President Sales, National Accounts - Newsprint for AbitibiBowater and Vice President Sales, Commercial Printers for Abitibi-Consolidated Inc. from 2004 to 2009.  Mr. Lafave previously held progressive positions in sales with UPM-Kymmene and Repap Enterprises.

Yves Laflamme, Senior Vice President, Wood Products, Global Supply Chain and Information Technology.Mr. Laflamme served most recently as Senior Vice President, Wood Products for AbitibiBowater Inc. He was previously Senior Vice President, Woodlands and Sawmills of Abitibi-Consolidated Inc. from 2006 to October 2007 and Vice President, Sales, Marketing and Value-Added Wood Products of Abitibi-Consolidated from 2004 to 2005.

Jacques P. Vachon, Senior Vice President and Chief Legal Officer. Mr. Vachon most recently served as Senior Vice President, Corporate Affairs and Chief Legal Officer for AbitibiBowater Inc. He previously was Senior Vice President, Corporate Affairs and Secretary of Abitibi-Consolidated Inc. from 1997 to October 2007.

All appointments are effective immediately, with the exception of Mr. Boivin who will join AbitibiBowater in March. Also reporting directly to Mr. Garneau is William Kerr who will serve as Vice President, Internal Audit. Mr. Kerr also reports functionally to the Company's Audit Committee of the Board.

AbitibiBowater will host a management conference call and webcast to discuss the emergence from its financial and operational restructuring at 9:00 a.m. (Eastern) on Friday, January 14, 2011.

Interested parties may listen to the one-hour live conference call by dialing 866 696-5910, and using access code 3276848. A webcast of the call as well as a presentation will be available on AbitibiBowater's website at www.abitibibowater.com.

A replay of the call will be available through January 28, 2011 by dialing 800 408-3053 and using access code 1432588. A replay will also be available on the Company's website.

AbitibiBowater is a global leader in the forest products industry, producing a diverse range of products, including newsprint, commercial printing and packaging papers, market pulp and wood products. The Company owns or operates 18 pulp and paper mills and 24 wood products facilities located in the United States, Canada and South Korea. Marketing its products in more than 70 countries, AbitibiBowater is also among the largest recyclers of old newspapers and magazines in North America, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade under the stock symbol ABH on both the New York Stock Exchange and the Toronto Stock Exchange.

For further information: Investors: Duane Owens, Vice President, Finance, 864 282-9488; Media and Others: Seth Kursman, Vice President, Public Affairs, Sustainability & Environment, 514 394-2398, This email address is being protected from spambots. You need JavaScript enabled to view it.

AbitibiBowater is pleased to announce that it has successfully completed its reorganization and has emerged from creditor protection under the Companies' Creditors Protection Act (or "CCAA") in Canada and chapter 11 of the U.S. Bankruptcy Code (or "chapter 11").

"Through our restructuring efforts, we have transformed this organization and given AbitibiBowater a new future - one driven by a Company-wide commitment to profitability and sustainability," stated David J. Paterson, President and Chief Executive Officer. "By strengthening our competitiveness and dramatically improving our financial position, AbitibiBowater has become one of the lowest cost forest products companies in North America. We are now a leaner, more flexible organization with a balanced product portfolio, better able to create value for our stakeholders while responding to the challenges of a tough industry with ongoing market volatility."

Emergence from creditor protection represents the culmination of efforts that were undertaken shortly after the combination of Abitibi-Consolidated Inc. and Bowater Incorporated in order to address fundamental changes in the marketplace. Since 2007, the Company has restructured itself both financially and operationally in a way that has dramatically lowered its breakeven point, having:

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    - Streamlined its asset profile to top-performing facilities, closing or idling 3.4 million metric tons of paper capacity on an annual basis. This represents capacity reductions of 41% for newsprint and 32% for commercial printing papers. Wood products capacity was reduced by 21% over the same period.

    - Balanced its portfolio of products, reducing exposure to any one grade. New production capacities on an annual basis are - newsprint: 3.3 million metric tons, commercial printing papers: 2.5 million metric tons, pulp: 1.1 million metric tons and wood products: 2.2 billion board feet.

    - Developed a flexible mill portfolio with a mix of U.S., Canadian and international mills located strategically to efficiently serve our customers, supporting low-cost, on-time delivery and providing a natural currency hedge as well as the ability to adapt to changing market dynamics.

    - Completed a strategic review and sold non-core assets and land holdings for total aggregate proceeds of over $940 million.

    - Reduced its debt burden by 88% from $6.8 billion to $850 million, excluding approximately $239 million in non-recourse joint-venture debt for ACH Limited Partnership. This Company is currently in the process of evaluating the potential sale of ACH.

    - Eliminated $880 million of annual fixed costs, from $1,353 million to $473 million.

    - Realized over $375 million in annualized synergies from manufacturing efficiencies and SG&A reductions as well as procurement and logistics initiatives.

    - Entered into agreements with provincial authorities in Ontario and Quebec, reducing annual pension fund contributions by approximately $200 million. These reductions have been made while registered pension plans continue to pay 100% of obligations to retirees and beneficiaries. The Company will gradually move towards normalized solvency funding over a 10-year period.

    - Completed other initiatives that have materially improved AbitibiBowater's financial position, including: the repudiation or renegotiation of unfavorable contracts, creating savings of over $78 million and the settlement of a North American Free Trade Agreement (NAFTA) claim of C$130 million for the expropriation of Company assets in Newfoundland and Labrador.
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In noting the importance of this occasion, Alain Grandmont, Executive Vice President, Human Resources and Supply Chain, stated: "It brings me great pride in sharing this defining moment in AbitibiBowater's history with our employees, union leadership, customers, business partners and supporters, without whom this day would not have been possible. In the long process of our turnaround, all of us have made sacrifices to place this organization in the much stronger position it now enjoys. AbitibiBowater values and appreciates the commitment all have shown in helping us reach this point."

"The restructuring process has tested the strength of our relations with our employees, unions, business partners and the communities where we live and do business. We will work hard to renew positive relationships and build goodwill through a commitment to be profitable as well as environmentally and socially responsible," said Pierre Rougeau, Executive Vice President, Operations and Sales.

"Our continuing investments in sustainable forest management, renewable energy projects and reducing our environmental footprint reflect AbitibiBowater's commitment to be an environmental supplier of choice," added Yves Laflamme, Senior Vice President, Wood Products. "Moving forward, we remain committed to providing exceptional value to our customers by delivering diversified, innovative products and services that support our customer needs."

The path for AbitibiBowater to emerge from creditor protection was set in motion following the entry of a confirmation order for the Company's chapter 11 plan of reorganization by the U.S. Bankruptcy Court for the District of Delaware and the sanction of the Company's CCAA plan of reorganization by the Quebec Superior Court on November 23 and September 23, 2010, respectively. AbitibiBowater has closed $1,450 million in exit financing facilities that will be used to repay remaining debtor-in-possession credit facilities, honor obligations to secured creditors, make other payments required upon exit from creditor protection, and increase its already strong liquidity position. On or about December 17, 2010, the Company will make certain initial distributions to unsecured creditors in the form of new shares of AbitibiBowater common stock in payment of allowed creditor claims. Subject to official notice of issuance, the new shares will be listed on the New York Stock Exchange (the "NYSE") and the Toronto Stock Exchange (the "TSX"). Trading on the NYSE and TSX is expected to begin on December 10, 2010 on a "when issued" basis under the symbol "ABH WI", and "regular way" trading is anticipated to begin on December 20, 2010, the date of the initial distribution to unsecured creditors, under the symbol "ABH".

"Our emergence from creditor protection marks the beginning of a new AbitibiBowater. We are committed to building on our sound foundation by improving our business mix, reducing costs and providing high-quality products. I am confident that the financial and operating restructuring we have completed provides the framework for future success," added William G. Harvey, Executive Vice President and Chief Financial Officer.

More information regarding AbitibiBowater's completion of the reorganization and financial restructuring process is available through www.abitibibowater.com/emergence.

AbitibiBowater is a global leader in the forest products industry, producing a diverse range of products, including newsprint, commercial printing and packaging papers, market pulp and wood products. The Company owns or operates 18 pulp and paper mills and 24 wood products facilities located in the United States, Canada and South Korea. Marketing its products in more than 70 countries, AbitibiBowater is also among the largest recyclers of old newspapers and magazines in North America, and has third-party certified 100% of its managed woodlands to sustainable forest management standards.

Forward-Looking Statements

Statements in this press release that are not reported financial results or other historical information of AbitibiBowater are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. They include, for example, statements relating to our: post-emergence financial condition, competitive position, efforts to improve our business mix, reduce costs and increase revenues and profitability, including our cost reduction initiatives regarding selling, general and administrative expenses; business outlook; curtailment of production of certain of our products; assessment of market conditions; and strategies for achieving our goals generally. Forward-looking statements may be identified by the use of forward-looking terminology such as the words "should," "would," "could," "will," "may," "expect," "believe," "anticipate," "attempt" and other terms with similar meaning indicating possible future events or potential impact on our business or AbitibiBowater's shareholders.

The reader is cautioned not to place undue reliance on these forward-looking statements, which are not guarantees of future performance. These statements are based on management's current assumptions, beliefs and expectations, all of which involve a number of business risks and uncertainties that could cause actual results to differ materially. The potential risks and uncertainties that could cause our actual financial condition, results of operations and future performance to differ materially from those expressed or implied in this press release include: risks and uncertainties associated with the creditor protection proceedings, including limitations against debtors in connection therewith, the values, if any, that will be assigned to our various pre-petition liabilities and securities and the plans of reorganization, as further described in our quarterly report on Form 10-Q filed with the United States Securities and Exchange Commission ("SEC") on November 15, 2010; growth in alternative media that would further reduce the demand for print media and our products; the ability of our customers to afford to pay for our products; general industry, economic and market conditions, including the new residential construction market in the U.S.; our capital intensive operations and the adequacy of our capital resources; our ability to obtain permits to operate our facilities and continue to remain in compliance with environmental laws and regulations; strikes and other labor-related supply chain disruptions that may impact our ability to operate our facilities; fluctuations in foreign currency exchange rates, especially those relative to the U.S. dollar and the Canadian dollar; our significant degree of leverage, underfunding of our pension plans and concerns about our financial viability; the prices and terms under which we would be able to sell assets; the success of our implementation of additional measures to enhance our operating efficiency and productivity; the costs of raw materials such as energy, chemicals and fiber; the possibility that we could lose any or all of our equity interest in Augusta Newsprint Company; the post-emergence impact of the creditor protection proceedings on our operations, including the impact on our ability to negotiate favorable terms with suppliers, customers, counterparties and others; and other risk factors described in our quarterly report on Form 10-Q filed with the SEC on November 15, 2010.

All forward-looking statements in this press release are expressly qualified by the cautionary statements contained or referred to in this section and in our other filings with the SEC and the Canadian securities regulatory authorities. We disclaim any obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

For further information: Contacts: Investors: Duane Owens, Vice President, Finance, 001864 282-9488 ; Media and Others: Seth Kursman, Vice President, Public Affairs, Sustainability & Environment, 001514 394-2398, This email address is being protected from spambots. You need JavaScript enabled to view it.

Based in Montreal, Quebec, AbitibiBowater Inc. is the third largest pulp and paper company in Canada and the eighth largest publicly traded pulp and paper manufacturer in the world. It manages the largest area of publicly-owned forest land in Canada, a total of some 19.5 million hectares.

Through its 21 pulp and paper mills and 24 wood products facilities in the Canada, the US and South Korea it produces a range of newsprint, commercial printing and packaging papers, pulp and wood products. It is one of most important recyclers of old newspapers and magazines in the world.

The company is committed to ensuring sustainability – ecological, economic and social – in all its operations. In particular it is keen to protect the wildlife, fish, plants, soils and water resources on the land under its management. It also makes efforts to conserve biological diversity and to protect the area under its management for other land uses including recreational purposes and cultural heritage.

As part of this, AbitibiBowater works with a wide range of stakeholders such as customers, suppliers, employees, shareholders, communities – indigenous groups like First Nation and Native American groups – governments and NGOs in all areas of its activities including the cooperative management of sustainable forest licenses, engineering, production, forestation, road access, harvesting, silviculture and transportation.

The company is a firm believer in the value of Sustainable Forest Management (SFM) principles and certification and supports mandatory certification on public land. Adherence to SFM standards provides assurances that wood and fibre products are sourced from responsibly-managed forests. Of the 10% of global forests that have been certified, 40% are in Canada.

AbitibiBowater recognizes several certification standards. These include the Canadian Standards Association (CSA), the Sustainable Forests Initiative (SFI), and the American Tree Farm Systems (ATFS), all fully endorsed by the Programme for the Endorsement of Forest Certification schemes (PEFC). In addition, it recognises the Forest Stewardship Council (FSC). As of end 2008, all the woodland under the company's management had been certified to independent, third-party audited standards, mainly CSA and SFI which are fully endorsed by PEFC. In addition, 12 of the company's pulp and paper mills have achieved Chain-of-Custody (CoC) to internationally-recognized CoC standards including PEFC. Plans are afoot to obtain CoC certification for more of its plants.

As part of its commitment to stakeholder engagement for SFM, in 2003 the company created the Lac St. Jean CSA Public Advisory Group, a voluntary initiative comprised of 27 local stakeholders drawn from companies, clubs and associations, workers' groups, environmental groups, fauna and flora reserve protection associations, indigenous peoples' organizations, and representatives of municipal authorities. This group of stakeholders was formed originally as part of efforts to secure CSA certification for 4.3 million hectares of forest land in two parts of the Lac St. Jean area, namely Lac St. Jean and Peribonka. Both areas include sites of exceptional biodiversity, cultural and spiritual value; the protection of all three values has been identified as a key indicator of SFM. In 2008, the area was modified to include new tenures covering 3.2 million hectares in the Lac St-Jean area.

Since its creation, the Lac St. Jean CSA Public Advisory Group has made significant and sustained contributions to identifying improvements in SFM practices resulting in a number of measurable successes.

One of these successful outcomes has been the inclusion of the White Mountain Valley area in the network of protected areas in the province. In June 2006, Nature Québec lodged a request with the Public Advisory Group to consider special conservation measures for the White Mountains Valley area, a region of particular scenic beauty popular for recreation activities. In particular, Nature Québec was keen to see this area included in the network of protected areas of the province so as to ensure that wood exploitation would not negatively impact on the area in any way. The Advisory Group requested that the Quebec Ministry of Sustainable Development, Environment & Parks include the site in its proposals for extending the province's network of protected areas.

The successful outcome of this initiative resulted in a request being submitted by the Regional Government to the Advisory Group for the conservation of three other special sites. These sites included La Chute Blanche (or White Falls), a place with a unique scenic value; the River Micosas' streamsides, tributaries rich in Landlocked Salmon (a species of freshwater salmon); and the area home to the largest Yellow Birch in Québec. The Advisory Group took on board the requests, examined the sites and their natural features, and analysed the impacts of commercial forestry activities at all three sites. Following on from this, special conservation measures have now been integrated into the 5-year forest management plan (2008-2013).

In the coming years, the Québec Ministry of Natural Resources and Wildlife plans to propose new sites for special consideration. And thanks to the Lac St. Jean Advisory Group's conservation successes, the Ministry has requested the Group's cooperation for analyses of new proposals as well as their possible integration in forest management planning.

Another very important aspect of SFM is minimising contamination of water sources around forestry operations. In this vein, the Lac St. Jean Advisory Group has also been solicited to consider ways to minimise sedimentation in water courses on the land managed by AbitibiBowater. The Group's work in this area began in February 2005 with the adoption of an indicator as part of efforts to reduce sedimentation from the road network on the land under AbitibiBowater's management.

As a first step in these efforts, the Group began by conducting an assessment of the magnitude of the problem represented by run-off and sedimentation of the water courses running through the region, particularly in those areas where culverts had been installed to direct the flow of water through the water courses. It then drew up an action plan with a series of measures aiming at reducing the occurrence of sediments in the water courses and in a 20-metre buffer zone along the stream one year after the installation of culverts.

Following this, a series of recommendations was made and a sampling assessment method developed and implemented. This allowed major sources of sedimentation to be identified. Subsequently, recommendations were made to improve water flow and reduce sedimentation from the surrounding areas.

These recommendations were implemented on the ground by forestry operators. They have yielded considerable positive results. In the first place, assessments carried out in 2007, two years after this initiative was first implemented, showed that the number of streams without any sediment within the 20m buffer on both sides of the culvert, increased from 58% to 91% (see graph, below). There is every reason to believe that improvements in sedimentation will continue to be seen year-on-year. Remarking on the success of this forest-management initiative, one commentator noted "Maintaining water quality is an important element of sustainable forest management. This new approach has clearly allowed achieving significant improvements while involving on the ground operators."

Clearly, in the years since its creation, the Lac St. Jean CSA Public Advisory Group has played an important role in identifying improvements in SFM practices in the Lac St. Jean forests and contributed to the health of the forest areas under the management of AbitibiBowater. For Abitibibowater too, the creation of the multi-stakeholder Public Advisory Group has yielded several benefits. It has helped the company to better define some of its operational practices, contributed to the protection of the sites under its management, improved the social acceptability of the company, facilitated sales of its products, and improved exchanges of information and dialogue among all stakeholders. Overall, the creation of the Public Advisory Group and the successful outcomes of its initiatives have resulted in a win-win situation for all concerned stakeholders as well as for the forests.

Further Information

AbitibiBowater Inc.

AbitibiBowater announces that, as part of its restructuring process, it had entered into agreements with the Government of Ontario related to funding relief in respect of the material aggregate solvency deficits in the registered pension plans the Company sponsors in Ontario and Quebec. The agreements will enable the Company to seek the waiver of the conditions, as detailed in its restructuring plans, regarding the adoption of funding relief regulations. On September 14, the Government of Quebec announced an agreement between the Company and the Régie des rentes du Québec for similar relief measures. The agreements finalized with the provinces of Ontario and Quebec provide, among other things, that the Company will meet its future pension obligations in full to the beneficiaries.  

"The best way to ensure pension benefits continue to be paid out is to ensure a company stays in business. We are pleased that AbitibiBowater will continue to operate, that thousands of Ontarians will continue to be employed, and that existing pensioners will continue to receive their benefits," stated Dwight Duncan, Ontario Minister of Finance.

In addition, an agreement for the next five years has been entered into by the Government of Ontario and what will become one of AbitibiBowater's Canadian subsidiaries post emergence, AbiBow Canada, regarding its pulp and paper operations in the province. AbiBow Canada has agreed to apply specific measures regarding its governance and investment levels as well as the sustainability of its operations in Ontario.

"The agreement affects thousands of workers, retirees and families in Ontario and allows the Company to move towards the finalization of its emergence from creditor protection. We are all very pleased to see AbitibiBowater get back on its feet, and I am especially appreciative of the support of my colleague at the Ministry of Finance, Minister Dwight Duncan, for making this happen," said Michael Gravelle, Ontario Minister of Northern Development, Mines and Forestry.

This agreement will become effective as of the time of AbitibiBowater's emergence from creditor protection. Moreover, the parties have agreed to re-evaluate the covenants of the agreement at the end of the initial five-year term in light of the Company's situation, the conditions affecting the pulp and paper industry as a whole and the solvency of its pension plans.

"We have signed today an agreement that is a significant step toward our emergence. We are convinced we have obtained the best deal possible for all our employees and retirees in Canada, and we would like to thank the Government of Ontario for its ongoing support," stated David J. Paterson, President and Chief Executive Officer of AbitibiBowater.

The Company directly employs approximately 8,500 workers and has in the order of 20,000 pensioners in Ontario and Quebec. These agreements are subject to AbitibiBowater's and its subsidiaries' emergence from creditor protection, which is expected to occur this fall, and is subject to confirmation of its U.S. plan of reorganization.

AbitibiBowater produces a wide range of newsprint, commercial printing and packaging papers, market pulp and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world. AbitibiBowater owns or operates 19 pulp and paper facilities and 24 wood products facilities located in the United States, Canada and South Korea. Marketing its products in more than 70 countries, the Company is also among the world's largest recyclers of old newspapers and magazines, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade over-the-counter on the Pink Sheets and on the OTC Bulletin Board under the stock symbol ABWTQ.

SOURCE: ABITIBIBOWATER INC.

The U.S. Bankruptcy Court is planning to hear arguments on AbitibiBowater's reorganization plans on Nov. 5. The reorganization plan already has creditor approval in both the U.S. and Canada, and has been approved by the Quebec Superior Court. One subsidiary, Bowater Canada Finance Corp., failed to get creditor approval and would be excluded from the restructuring.

The Canadian Press reports (in a story in online edition of the Winnipeg Free Press on Oct. 22) that the restructuring plan allows AbitibiBowater to secure up to US$2.3 billion in loans minus cash on hand. It has negotiated an asset-backed revolving loan of up to US$600 million from Citigroup, Barclay's and JP Morgan. It also had a US$850-million debt offering and C$130 million from a NAFTA settlement with the federal government over a lawsuit filed against Newfoundland and Labrador.

AbitibiBowater said it hopes to earn more than US$1.5 billion in net profits over the next four years as it emerges as a lower-cost producer better able to absorb market and currency fluctuations. Revenues are forecast to grow by 14.5 per cent to US$5.34 billion in 2011 from US$4.66 billion in 2010. They would then remain stable through 2014.

According to Canadian Press, AbitibiBowater has cut 6,000 jobs and dramatically reduced its paper and wood capacity by shutting down mills as it prepares to exit creditor protection. As of the end of March, it employed about 11,900 people, mostly in Ontario and Quebec.

AbitibiBowater is pleased to announce that the Quebec Superior Court today rendered an order sanctioning the Company's plan of reorganization under the Canadian Companies' Creditors Arrangement Act (CCAA). As previously announced, on September 14 and 21, 2010, respectively, the Company received approvals for its plans of reorganization from affected creditors under the CCAA in Canada and chapter 11 of the U.S. Bankruptcy Code in the United States, except with respect to Bowater Canada Finance Corporation (BCFC), a special purpose company subsidiary with no operating assets, which has been excluded from the Company's plans of reorganization.

"We are pleased to have received an order from the Quebec Superior Court sanctioning our CCAA plan," stated David J. Paterson, President and Chief Executive Officer. "The rendering of this court order represents a major milestone in the successful restructuring of our Company."

The confirmation hearing under the Chapter 11 process is scheduled to start on September 24, 2010, in the U.S. Bankruptcy Court in Delaware. Subject to the satisfaction of certain conditions provided for in the plans of reorganization, AbitibiBowater continues to expect emergence from creditor protection this fall.

The sanction order rendered by the Quebec Superior Court on the CCAA reorganization plan will be available through www.abitibibowater.com/restructuring.

AbitibiBowater produces a wide range of newsprint, commercial printing and packaging papers, market pulp and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world. AbitibiBowater owns or operates 19 pulp and paper facilities and 24 wood products facilities located in the United States, Canada and South Korea. Marketing its products in more than 70 countries, the Company is also among the world's largest recyclers of old newspapers and magazines, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade over-the-counter on the Pink Sheets and on the OTC Bulletin Board under the stock symbol ABWTQ.