2009-04-17
07:41:56
Debt-strapped newsprint giant AbitibiBowater has filed for bankruptcy protection from creditors in Canada and the United States.
The company says it had no other options after failing to refinance debts at its Bowater and Abitibi-Consolidated subsidiaries. It will restructure under court supervision under Chapter 11
laws in the United States and the Companies' Creditors Arrangement Act in Canada.
AbitibiBowater says it plans to use the restructuring process to deal decisively with its debt burden. Normal day-to-day operations will continue during the restructuring process.
In a related matter, the company says it has struck a deal with Fairfax Financial Holdings, a major shareholder, and other investors for about $200 million in emergency financing.
