AbitibiBowater Plans of Reorganization under Chapter 11 Approved by Creditors
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AbitibiBowater, Montreal, Que., Canada, reported this week that it has received creditor approval for its plan of reorganization under chapter 11 of the U.S. Bankruptcy Code, except with respect to Bowater Canada Finance Corporation (BCFC), a special purpose company subsidiary with no operating assets, which has been excluded from the chapter 11 plan. The chapter 11 plan of reorganization received overwhelming support from creditors, both in dollar amount of claims and in number of claim holders who voted on the plan.
Having obtained the requisite votes from creditors, except with respect to BCFC, the AbitibiBowater and its subsidiaries will exclude BCFC from the process and proceed with plan confirmation. The company does not believe that the exclusion of BCFC will affect the timing of its confirmation hearing that is scheduled to start on September 24 in the U.S. Bankruptcy Court in Delaware.
"We are pleased to have received approval by the vast majority of creditors under the U.S. Bankruptcy Code for our chapter 11 plan of reorganization," stated David J. Paterson, president and CEO, said. "We appreciate the support for our plans of reorganization as we work to create a more sustainable and competitive organization."
As previously announced, on September 14, the company received approval for its plan of reorganization from affected creditors under the Canadian Companies' Creditors Arrangement Act in Canada, except with respect to BCFC. Subject to the satisfaction of certain conditions provided for in the plans of reorganization, AbitibiBowater continues to expect emergence from creditor protection this fall.
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