AbitibiBowater has won court approval of its restructuring plan outline, allowing the company to seek the support from its creditors.
Under the plan, unsecured creditors would share the reorganized company’s stock in addition to the right to participate in a 500-million dollar notes offering that would be convertible into equity.
Secured creditors would be paid in full in cash, or get some other other mutually agreed upon treatment that would give them a full recovery.
The company’s existing shareholders would be wiped out under the proposal.
