Business News
ABITIBIBOWATER ANNOUNCES DELAY IN FILING ANNUAL FINANCIAL STATEMENTS IN CANADA
Wednesday 01. April 2009 - AbitibiBowater Inc. and AbitibiBowater Canada Inc. (collectively, the "Companies") announced today that they are not able to file their annual financial statements, accompanying management's discussion and analysis ("MD&A") and related CEO and CFO certifications (collectively, the "2008 Annual Financial Statements") for the financial year ended December 31, 2008, within the period prescribed for the filing of such documents under Parts 4 and 5 of National Instrument 51-102 and pursuant to National Instrument 52-109, namely within 90 days of year-end. The Companies expect to file the 2008 Annual Financial Statements shortly.
AbitibiBowater Canada is an “exchangeable security issuer” that normally relies on a statutory exemption set forth in Part 13 of National Instrument 51-102 which permits it, when the conditions specified therein are satisfied, not to prepare and file its own financial statements and accompanying MD&A, among other continuous disclosure documents, and to rely on the financial statements and MD&A of its parent company, AbitibiBowater.
Despite their efforts, the Companies are not currently in a position to timely file the 2008 Annual Financial Statements, primarily as a result of the time required to finalize the accounting for certain transactions, to complete their accounting analysis, primarily related to goodwill impairment and long-lived asset impairment, and to reflect and account for the outcome of a significant pending debt refinancing in the 2008 Annual Financial statements.
The Companies confirm that they intend to satisfy the provisions of the alternative information guidelines found at sections 4.3 and 4.4 of National Policy 12-203 for so long as they remain in default as a result of the late filing of the 2008 Annual Financial Statements. During the period of default, the Companies will issue bi-weekly default status reports in the form of further press releases, which will also be filed on SEDAR. The Companies confirm that there are no insolvency proceedings against them as of the date of this press release. The Companies also confirm that there is no other material information concerning the affairs of the Companies that has not been generally disclosed as of the date of this press release.
The Companies have made a joint application to the applicable Canadian securities regulatory authorities for a management cease trade order. There is no certainty that such order will be granted. The applicable Canadian securities regulatory authorities may issue general cease trade orders against the Companies for failure to file the 2008 Annual Financial Statements within the prescribed time period.