Canada-based producer of newsprint, commercial printing and packaging papers, market pulp and wood products AbitibiBowater has received the necessary creditor approval for its plan of reorganisation under chapter 11 of the US Bankruptcy Code.
Having obtained the requisite votes from creditors, except with respect to Bowater Canada Finance Corporation (BCFC), the Company 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 24 September 2010, in the US Bankruptcy Court in Delaware.
The company has received approval for its plan of reorganisation from affected creditors under the Canadian Companies’ Creditors Arrangement Act.
Subject to the satisfaction of certain conditions provided for in the plans of reorganisation, AbitibiBowater continues to expect emergence from creditor protection this winter.