AbitibiBowater Ready to Solicit Creditor Approval for Plans of Reorganization

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AbitibiBowater, Montreal, Que., Canada, announced that in connection with its ongoing creditor protection proceedings, the U.S. Bankruptcy Court for the District of Delaware this past Monday approved the company's solicitation materials for its U.S. plan of reorganization. On July 9, the company had obtained the Quebec Superior Court's approval for the mailing of solicitation materials and related disclosure documents for its plan of reorganization under the Companies' Creditors Arrangement Act (CCAA) of Canada. These approvals now enable AbitibiBowater to start soliciting votes from creditors to accept or reject its restructuring plans, in accordance with the applicable court orders.

The unsecured creditors committee supports the plans and the disclosure documents, AbitibiBoiwater notes, adding that the company expects to begin mailing the solicitation and voting materials in connection with the creditor protection proceedings to its unsecured creditors, including employees, on or about August 9.

"These developments signal significant progress in AbitibiBowater's restructuring process," David J. Paterson, president and CEO, said. "We are on track to emerge in the fall a stronger, more sustainable company." Before emerging from creditor protection, the company must obtain adequate exit financing and complete efforts to address labor costs and pension issues, as well as satisfy other conditions set forth in the plans of reorganization. Ultimately, the company's plans of reorganization will require creditor approval and confirmation by the U.S. and Canadian Courts.