Displaying items by tag: abitibiwater

AbitibiBowater Inc. Senior Vice President and Chief Financial Officer William Harvey will speak at the Barclays Capital 2011 High Yield Bond and Syndicated Loan Conference in Orlando, Florida on Thursday, March 24, 2011, at 11:30 a.m. Eastern.

A copy of the presentation and a link to a live audio webcast will be available on the Company's website. Interested parties are invited to use the link provided under "Presentations and Webcasts" on the Investors page of www.abitibibowater.com.

AbitibiBowater is a global leader in the forest products industry, producing a diverse range of products, including newsprint, commercial printing papers, market pulp and wood products. The Company owns or operates 18 pulp and paper mills and 24 wood products facilities located in the United States, Canada and South Korea. Marketing its products in more than 70 countries, AbitibiBowater is also among the largest recyclers of old newspapers and magazines in North America, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade under the stock symbol ABH on both the New York Stock Exchange and the Toronto Stock Exchange.

Richard B. Evans, Chair of AbitibiBowater, today announced that David J. Paterson will step down as President and Chief Executive Officer on January 1, 2011, having successfully led the Company through the most far-reaching restructuring in its history. He will be succeeded by Richard Garneau, currently a member of the Board of Directors and the former President and Chief Executive Officer of Catalyst Paper Corporation.

Mr. Paterson has agreed to stay on in an executive advisory role through January 2011 and a non-executive advisory role through July 31, 2011, supporting a smooth transition and continued positive momentum for the Company. As announced yesterday, AbitibiBowater emerged from creditor protection as a lean, flexible and sustainable company, well-positioned for future growth.

"Throughout this time of transition, I have been inspired by the desire of all employees to create the right conditions to take AbitibiBowater back to profitability, build strong market presence, promote sustainability and position us for future success," said Mr. Paterson. "Today, after three years of very demanding work, the foundations for that success are clearly in place, and I feel it is the right time to turn my time and attention back to the other people in my life who inspire me - my wife and family."

"There is no doubt that Dave Paterson was the right person at the right time for AbitibiBowater," said Richard Evans. "He set an example through his dedication and hard work. He gave us a new vision and a drive to succeed, and motivated everyone to believe in our future. AbitibiBowater today is a testament to his commitment, and the Board and employees of the Company are extremely grateful to him for his decisive leadership."

Richard Garneau joined AbitibiBowater as a member of the Board of Directors in June 2010. Most recently, he served as President and Chief Executive Officer of Catalyst Paper Corporation from March 2007 to May 2010. Prior to his tenure at Catalyst, he held a variety of roles in the forest products industry. Upon graduating with a Degree in Administration from Laval University in Quebec in 1971, Mr. Garneau joined Ernst & Young and remains a member today of the Canadian Institute of Chartered Accountants.

"AbitibiBowater is a company with a long history, skilled and dedicated employees, and a determination to succeed as a profitable and sustainable enterprise," said Richard Garneau. "Dave Paterson and his team have laid the foundation for a future success story, and I'm excited for the opportunity to help write its next chapter."

AbitibiBowater is a global leader in the forest products industry, producing a diverse range of products, including newsprint, commercial printing and packaging papers, market pulp and wood products. The Company owns or operates 18 pulp and paper mills and 24 wood products facilities located in the United States, Canada and South Korea. Marketing its products in more than 70 countries, AbitibiBowater is also among the largest recyclers of old newspapers and magazines in North America, and has third-party certified 100% of its managed woodlands to sustainable forest management standards.

AbitibiBowater announces that, as part of its restructuring process, it had entered into agreements with the Government of Ontario related to funding relief in respect of the material aggregate solvency deficits in the registered pension plans the Company sponsors in Ontario and Quebec. The agreements will enable the Company to seek the waiver of the conditions, as detailed in its restructuring plans, regarding the adoption of funding relief regulations. On September 14, the Government of Quebec announced an agreement between the Company and the Régie des rentes du Québec for similar relief measures. The agreements finalized with the provinces of Ontario and Quebec provide, among other things, that the Company will meet its future pension obligations in full to the beneficiaries.  

"The best way to ensure pension benefits continue to be paid out is to ensure a company stays in business. We are pleased that AbitibiBowater will continue to operate, that thousands of Ontarians will continue to be employed, and that existing pensioners will continue to receive their benefits," stated Dwight Duncan, Ontario Minister of Finance.

In addition, an agreement for the next five years has been entered into by the Government of Ontario and what will become one of AbitibiBowater's Canadian subsidiaries post emergence, AbiBow Canada, regarding its pulp and paper operations in the province. AbiBow Canada has agreed to apply specific measures regarding its governance and investment levels as well as the sustainability of its operations in Ontario.

"The agreement affects thousands of workers, retirees and families in Ontario and allows the Company to move towards the finalization of its emergence from creditor protection. We are all very pleased to see AbitibiBowater get back on its feet, and I am especially appreciative of the support of my colleague at the Ministry of Finance, Minister Dwight Duncan, for making this happen," said Michael Gravelle, Ontario Minister of Northern Development, Mines and Forestry.

This agreement will become effective as of the time of AbitibiBowater's emergence from creditor protection. Moreover, the parties have agreed to re-evaluate the covenants of the agreement at the end of the initial five-year term in light of the Company's situation, the conditions affecting the pulp and paper industry as a whole and the solvency of its pension plans.

"We have signed today an agreement that is a significant step toward our emergence. We are convinced we have obtained the best deal possible for all our employees and retirees in Canada, and we would like to thank the Government of Ontario for its ongoing support," stated David J. Paterson, President and Chief Executive Officer of AbitibiBowater.

The Company directly employs approximately 8,500 workers and has in the order of 20,000 pensioners in Ontario and Quebec. These agreements are subject to AbitibiBowater's and its subsidiaries' emergence from creditor protection, which is expected to occur this fall, and is subject to confirmation of its U.S. plan of reorganization.

AbitibiBowater produces a wide range of newsprint, commercial printing and packaging papers, market pulp and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world. AbitibiBowater owns or operates 19 pulp and paper facilities and 24 wood products facilities located in the United States, Canada and South Korea. Marketing its products in more than 70 countries, the Company is also among the world's largest recyclers of old newspapers and magazines, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade over-the-counter on the Pink Sheets and on the OTC Bulletin Board under the stock symbol ABWTQ.

SOURCE: ABITIBIBOWATER INC.

The Government of Canada will pay AbitibiBowater $130 million in compensation for the expropriation of the company's assets in Newfoundland and Labrador, considering that amount fair market value for the newsprint mill, water and timber rights, power plants and hydro infrastructure. As part of the settlement, AbitibiBowater will withdraw its request for NAFTA arbitration on the issue. The payment will be made after AbitibiBowater completes its restructuring.

Premier Danny Williams of Newfoundland says his province, which took possession of the assets in March 2009, will not repay the federal government for the settlement. Williams is unrepentant concerning the hasty expropriation, according to a story by the Canadian Press appearing in the Winnipeg Free Press on Aug. 25. Williams also says he'd do nothing differently - except for the accidental seizure of the mill itself.

In a joint statement, the Department of Foreign Affairs and International Trade Canada said: "The Government of Canada has resolved this dispute for the benefit of Canada's long-term economic interests. In reaching this agreement, the Government of Canada is avoiding potentially long and costly legal proceedings."

"We believe this is an acceptable settlement for our company, stakeholders and creditors, given the set of circumstances faced by the company at this particular time as well as the inherent uncertainty of any judicial process," stated David J. Paterson, president and CEO. "We are now able to move forward and focus on finalizing our restructuring process and plans to emerge from creditor protection in the fall 2010."

After arduous negotiations, the Communications, Energy and Paperworkers Union of Canada (CEP) has agreed to a tentative agreement with AbitibiBowater to renew the collective agreement. This deal fulfills an essential condition towards the emergence of the company from the current restructuring process.

"We have the best possible agreement, given the precarious financial condition of the company", says CEP President Dave Coles. "We are proud to have been able to protect retirees and to have created a new stable pension plan for the active workers. Our members will no longer have to fear the shadow of an insolvency of their plan".

The company took off the table its proposal to terminate the pension plans, which would have reduced pension benefits by an average of 25%. Provincial government will now bear the responsibility to adopt the appropriate regulatory changes to allow the company to financially fix the pension plans.

However, the union is furious at the total lack of help shown by the Conservative government to the forestry workers. "It is our members who had to make sacrifices to save the company from bankruptcy", says Dave Coles. "The last federal budget fully demonstrated the contempt of this government for forestry workers. It is now clear for our workers, our retirees and our communities that the Conservatives have abandoned them".

This agreement covers about 4,500 workers and 8,000 retirees from 23 AbitibiBowater locals at 12 pulp and paper mills in Eastern Canada.

AbitibiBowater announced today the Company has received approval for a process to call for employee and other specified creditor claims (the "Second Claims Process") by the Quebec Superior Court in Canada and the U.S. Bankruptcy Court for the District of Delaware. This Second Claims Process follows an earlier call for specified creditor claims which was approved by the courts and announced on September 4, 2009 (the "First Claims Process").

The Second Claims Process outlines the procedures by which specified creditors can make claims against the Company. These specified creditors include, among others: certain creditors that were not subject to the First Claims Process, such as Company employees who were active as at April 16, 2009, or thereafter; certain creditors who may have claims arising from the breach or repudiation of contracts arising after August 31, 2009; and certain Company lenders. A comprehensive listing of procedures and specified creditors has been included in the Thirty-Second Report of the Monitor, a link to which can be found on abitibibowater.com.

Under the Second Claims Process, creditor claims must be received by 4:00 p.m. (Eastern Daylight Time) on April 7, 2010.

The Monitor, Ernst & Young Inc., and the Company's Claims Agent, Epiq Bankruptcy Solutions, LLC, will be mailing proof of claim packages to all known specified creditors. In addition, a copy of the court orders and the proof of claim package will be available through a link on abitibibowater.com. Creditors, or any other interested parties, who do not receive a proof of claim package can obtain the information through the Company website.

More information about AbitibiBowater's restructuring process can be found at www.abitibibowater.com or by calling toll-free 888 266-9280. International callers should dial 503 597-7698.

AbitibiBowater produces a wide range of newsprint, commercial printing papers, market pulp and wood products. It is the eighth largest publicly traded pulp and paper manufacturer in the world. AbitibiBowater owns or operates 22 pulp and paper facilities and 27 wood products facilities located in the United States, Canada and South Korea. Marketing its products in more than 90 countries, the Company is also among the world's largest recyclers of old newspapers and magazines, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade over-the-counter on the Pink Sheets and on the OTC Bulletin Board under the stock symbol ABWTQ.

Here is an update on the story Newsprint Machines Back in Operation

When the Thunder Bay PM #5 re-start was announced the company indicated that "Despite the announcement, we are not looking to increase our newsprint production in the market. Consequently, we will need to adjust our operations, but no firm plans have been finalized on that front".

My assumption based on that announcement, and other discussions, was that the company would eventually announce a capacity reduction similar to the 250,000 tonnes that re-started on February the 5th. That assumption has been confirmed.

Another assumption on my end was that, until an offsetting closure was announced and taken, AbitibiBowater would attempt to run the machines it had in operation at full capacity. That assumption was incorrect. Although AbitibiBowater does not announce rotating downtime, the company has, and will, take downtime to balance off the Thunder Bay production.

This clarification allows us to better understand the level of excess newsprint supply in the North American market. Nevertheless, by itself, this 250,000 tonnes (annualized) will not make much difference. There is still way too much overcapacity.

The operator of three newsprint mills in Quebec, White Birch Paper Company, has filed for creditor protection in Canada and the U.S., to improve its capital structure.

White Birch Paper is the parent company of the F.F. Soucy mill in Rivière-du-Loup, the Stadacona mill in Quebec, and Papier Masson in Gatineau. The company's U.S. subsidiary, Bear Island Paper Company, also filed for relief under Chapter 11 of the United States Bankruptcy Code.

"This process is about fixing our capital structure," said Christopher Brant, president. "We remain committed to delivering the highest quality product to our many valued customers, and through this financial restructuring, we believe we will be better positioned to continue to do so well into the future."

White Birch expects operations to continue as usual during and after the restructuring process.

The company is seeking approval in Canada and the U.S. of a $140 million in debtor-in-possession (DIP) financing.
White Birch Paper is the second largest newsprint producer in North America. It cites a decline in demand for newsprint, combined with a decline in prices, as well as the increased strength of the Canadian dollar, as having a negative impact on its business. AbitibiBowater, another large newsprint producer in North America, is also operating under bankruptcy protection