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AbitibiBowater to solicit creditor approval for its plans of reorganization

Tuesday, August 03, 2010

Press release from the issuing company

Montreal - AbitibiBowater announced today that in connection with the Company's ongoing creditor protection proceedings, the U.S. Bankruptcy Court for the District of Delaware approved on August 2, 2010 the Company's solicitation materials for its U.S. plan of reorganization under chapter 11 of the U.S. Bankruptcy Code. The Company had obtained on July 9, 2010 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). 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. 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, 2010.

"These developments signal significant progress in AbitibiBowater's restructuring process," stated David J. Paterson, President and Chief Executive Office. "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.

 

 

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