MONTREAL, Que. — In what could be a major blow to many Canadian carriers, pulp and paper company AbitibiBowater has filed for bankruptcy protection in Canada and the US.
“The company has concluded that there are no viable alternatives to itspreviously announced proposed refinancing of its Bowater andAbitibi-Consolidated subsidiaries, and as a result has determined that thebest course of action is to pursue its overall restructuring under courtsupervision in the United States and Canada,” AbitibiBowater declared in a release today.
The company said it will use the process to deal “decisively” with its “debt burden.” Normal day-to-day operations will continue during the process, the company announced.
“Today’s announced decisions ensure business continuity for AbitibiBowater and were made only after all other viable options to recapitalize our long-term debt were exhausted,” said David J. Paterson, president and CEO. “The steps we are taking today and the vote of confidence given to us by our restructuring financial partners will enable us to protect the value of the business for our many loyal employees, customers, suppliers and other stakeholders.”
He added the restructuring the company is now going through will allow the company to “make the necessary changes to ensure the long-term viability of the company.”
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