AbitibiBowater has filed for creditor protection in Canada and the U.S.
The bankrupt Montreal-based newspring giant announced April 16 it will seek protection under the Companies' Creditors Arrangement Act in Canada, and under Chapter 11 of the United States Bankruptcy Code.
In an April 16 news release, the company said there were "no viable alternatives" to earlier financing proposals of its Bowater and Abitibi-Consolidated subsidiaries. The company said it will use this process to restructure its debt and that normal day-to-day operations will continue during the restructuring process.
Earlier this month, when the company missed a deadline to reach an agreement with secured lenders, CEO David Paterson expressed optimism creditor protection could be avoided. The company needed to reach a deal with a syndicate of U.S. lenders, including Bank of America, Citicorp and Wachovia Corp. on a debt exchange of $1.8 billion US it acquired when Abitibi-Consolidated merged with Bowater in 2007.
.jpeg;w=120;h=80;mode=crop)
