Negotiations with the other two secured creditors are continuing.
The lenders have given AbitbiBowater Inc. until 6 p.m. March 27 to negotiate a deal to restructure US$1.8-billion in debt at its American subsidiary Bowater Inc. This is the third deadline.
Business pundits widely believe the banks are holding out for better terms.
If a deal isn’t reached, the company will most-likely be forced to file for bankruptcy protection and future efforts to reduce its overall $6-billion debt load by over one-third would be placed in jeopardy.
The company could also face delisting on the stock exchanges in Toronto and New York.
Two shareholders, Fairfax Financial Holdings Ltd. and Steelhead Partners LLC have agreed to Abitibi’s plans based on cuts that have already been made at the company. The same aforementioned business pundits also believe the company would survive, even in the current economic climate, if the debt burden were greatly reduced.
AbitibiBowater has closed mills, laid off workers, and regularly shuts down mills, including, currently, its Bowater Mersey Paper Company Ltd. mill in Brooklyn, Queens Co.
The Advance still hasn't been able to contact the two Union Local presidents involved with the Brooklyn mill.
Hope for Bowater mill
-
Published on
March 27, 2009
- Published on January 31, 2010
-
Mark Roberts/The
Various media sources are stating Citibank, one of three American banks holding up an AbitibiBowater financial restructuring deal, is willing to participate in the proposed debt swap.
- Rate
- Top of the page
