On April 16, 2009, AbitibiBowater Inc. and certain of its U.S. and Canadian subsidiaries filed under Chapter 11 of the U.S. Bankruptcy Code in Delaware. In its filing, AbitibiBowater listed its total assets and total debt as at September 30, 2008 at $9,937,000,000 and $8,783,000,000 respectively. On April 17, 2009, AbitibiBowater filed under sections 11 and 18.6 of the CCAA in Montreal, Quebec. Pursuant to section 18.6 of the CCAA, AbitibiBowater obtained an order recognizing the Chapter 11 proceedings as foreign proceedings and resulting in a stay on claims by Canadian creditors. AbitibiBowater also moved in the U.S. for an order approving a cross-border court-to-court protocol together with the Guidelines Applicable to Court-to-Court Communications in Cross-Border Cases.
AbitibiBowater announced that concurrent with the CCAA filing Abitibi-Consolidated Inc. will request the termination of its previously announced plan to recapitalize $2.4 billion in debt through a plan of arrangement under the Canada Business Corporations Act (the termination being as a result of the inability to satisfy certain conditions such as refinancing debt related to other AbitibiBowater subsidiaries). AbitibiBowater announced that its subsidiaries located outside of the U.S. and Canada have not filed under the U.S. Bankruptcy Code, the CCAA or similar regimes.
AbitibiBowater announced that it has entered into commitments with Fairfax Financial Holdings Limited and Avenue Management LLC for approximately $200 million in debtor-in-possession (DIP) financing for certain of its Bowater subsidiaries. It also announced that Abitibi-Consoldiated Inc. has entered into an amendment allowing for the continuation of its existing $210 million accounts receivable securitization program. The entering into of the commitments and amendment were approved by the CCAA Order.
According to AbitibiBowater, it is the eighth largest publicly traded pulp and paper manufacturer in the world and owns or operates twenty-three pulp and paper facilities and thirty wood products facilities in the U.S., Canada, the U.K. and South Korea. AbitibiBowater is based in Montreal, Quebec and was created by the 2007 merger of Abitibi-Consolidated Inc. and Bowater Inc.