By: E&P Staff
North America’s largest newsprint producer, AbitibiBowater Inc. said Sept 21 that creditors approved its U.S. plan of reorganization. The Montreal-based company, which expects to emerge from bankruptcy protection this fall, received creditor approval for its Canadian reorganization last week (E&P Online, Sept 16).
AbitibiBowater plans to pay secured lenders with proceeds from the sale of bonds and new shares. The plan awaits U.S. and Canadian courts’ approvals. A hearing at U.S. Bankruptcy Court in Wilmington, Del., is scheduled for Sept. 24.
Nnoting that reorganization has been aided by politicians and union in Canada, Reuters reported that the province of Quebec eased some pension and job-protection regulations in exchange for AbitibiBowater keeping its headquarters in Montreal, while Eastern Canadian millworkers approved in May a five-year contract with a 10% wage cut, wage increases resuming in 2012 and 2113, and a jointly managed pension plan.