By: E&P Staff
In continuing sales of almost $1 billion worth of non-core assets, bankrupt newsprint giant AbitibiBowater will sell its Parc aux Anglais golf course and surrounding land, including residentially zoned lots, to the town of Donnacona for $352,000, according to the Canadian Press.
The company closed its Donncona paper mill, near Quebec City, three years ago, since which time it has cut its paper production capacity by 3.4 million tons.
The Donnacona mill and three others in Quebec, Ontario and New Brunswick were recently sold to American Iron & Metal Company Inc.
Other assets sold by the company include its majority stake in a power company ($590 million), pulp and paper mills, part of an art collection ($348,000), and homes near one of its mills. The CP reported that the company hopes to make over $38,000 on three more art works.
AbitibiBowater looks to restructure its operations this summer, in a plan that will reduce debt from $6.5 billion to $1.6 billion. It projects a profit of approximately $262 million next year. CEO David Paterson said that to survive the declining demand for newsprint the company will rely on greater exports and more diversified products rather than cut more jobs and capacity.
Separately, AbitibiBowater appointed Richard Garneau to its board of directors. President and CEO of Catalyst Paper Corp. until last month, Garneau earlier was executive vice president of Domtar.