Business News
ABITIBIBOWATER RESPONDS TO STEELHEAD AND FAIRFAX FINANCING PROPOSAL
Friday 03. April 2009 - Company seeks support from Bowater's banks to achieve successful outcome
AbitibiBowater Inc. (“AbitibiBowater”) and its Bowater Incorporated (“Bowater”) subsidiary today responded to the announcement by Steelhead Partners, LLC and Fairfax Financial Holdings Limited (TSX and NYSE: FFH) regarding their intention to negotiate to arrange an aggregate of at least $50 million of additional funding to Bowater through Bowater’s U.S. credit facility. The proposed financing is subject to negotiation of specific terms with the lending syndicate participating in Bowater’s credit facility and execution of definitive agreements.
“We appreciate Steelhead’s and Fairfax’s confidence and willingness to support our restructuring initiatives. AbitibiBowater’s efforts will now be directed at obtaining support from our banks to bring Steelhead and Fairfax into our lending syndicate,” stated William G. Harvey, Senior Vice President and Chief Financial Officer. “We believe the additional funds proposed to be made available by Steelhead and Fairfax would provide us with sufficient short-term liquidity while we continue to address our restructuring of Bowater’s debt. The approval from and support of our banks in this process is a crucial step to a successful outcome.”
AbitibiBowater produces a wide range of newsprint and commercial printing papers, market pulp and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world. AbitibiBowater owns or operates 23 pulp and paper facilities and 30 wood products facilities located in the United States, Canada, the United Kingdom and South Korea. Marketing its products in more than 90 countries, AbitibiBowater is also among the world’s largest recyclers of newspapers and magazines, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater’s shares trade under the stock symbol ABH on both the New York Stock Exchange and the Toronto Stock Exchange.