AbitibiBowater is scrambling to avoid creditor protection after missing an April 1 deadline to reach a restructuring deal with its lenders and debt holders.
In an April 1 news release, company president and CEO David Paterson was "optimistic" on working out a new restructuring plan to its secured lenders. Paterson did not say what options the company is examining.
The deadline has already been extended five times in recent weeks by a group of U.S. lenders, which include Bank of America, Citicorp and Wachovia Corp.
The discussions come after the company's latest failed attempt to land support from debt holders to restructure US $1.8 billion of loans.
The company needs their approval if they are avoid filing for creditor protection, which could result in a fire sale of some of its mills, including its Thunder Bay pulp and paper operation. The company shut down down the mill for a month due to poor market conditions.
The Communications, Energy and Paperworkers Union (CEP) is calling on Prime Minister Stephen Harper to protect 12,000 Canadian jobs that could be lost if the AbitibiBowater restructuring plan fails.
"This is Canada's largest forest company and the majority of operations and employees are in Canada, but we seem to be just watching and waiting," said CEP president Dave Coles in a statement.
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