AbitibiBowater Gets Approval for $600 Million to Finance Operations During Reorg

Posted Thursday, June 4, 2009 12:00 am

By: E&P Staff North American newsprint manufacturing giant AbitibiBowater Inc. received final bankruptcy court approval of up to $600 million to finance operations during its reorganization.

Bloomberg reports this afternoon that the loan from Fairfax Financial Holdings Ltd. and Avenue Investment LP was approved in U.S. Bankruptcy Court in Wilmington, Del.

After its U.S. lenders rejected the company's proposed debt restructuring, AbitibiBowater filed for bankruptcy protection in April. A day later the court was allowed it an interim loan of $206 million of the $600 million in debtor-in-possession financing.

The company reported assets of $9.9 billion and debt of $8.78 billion in last fall's Chapter 11 petition. Based in Montreal, AbitibiBowater sought similar protection in Quebec, where a court last month approved $100 million in debtor-in-possession financing backed by the provincial government.

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AbitibiBowater Gets Approval for $600 Million to Finance Operations During Reorg

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