AbitibiBowater Emerges from Bankruptcy

AbitibiBowater, the largest newsprint producers in the world, has announced that it has successfully completed its reorganization and has emerged from creditor protection under the Companies’ Creditors Protection Act in Canada and Chapter 11 of the U.S. Bankruptcy Code.

The company filed for bankruptcy protection April of 2009.

“Through our restructuring efforts, we have transformed this organization and given AbitibiBowater a new future – one driven by a company-wide commitment to profitability and sustainability,” says David Paterson, president and CEO. "By strengthening our competitiveness and dramatically improving our financial position, AbitibiBowater has become one of the lowest cost forest products companies in North America. We are now a leaner, more flexible organization with a balanced product portfolio, better able to create value for our stakeholders while responding to the challenges of a tough industry with ongoing market volatility."

To exit bankruptcy protection, the company has taken a significant number of steps to become a viable entity. These include either closing or idling 3.4 million metric tons of paper capacity on an annual basis, which represents capacity reductions of 41 percent for newsprint and 32 percent for commercial printing papers.

Following AbitibiBowater exiting Chapter 11, the company has announced that Paterson will be stepping down as president and CEO on Jan. 1, 2011. He will be succeeded by Richard Garneau, currently a member of the company’s board of directors and the former president and CEO of Catalyst Paper Corp.