AbitibiBowater faces delisting

The company received notice from the New York Stock Exchange the company’s stock was below $1 on average for 30 days, which is required for staying listed, on Dec. 16.

The company has six months from the notification date to bring the stock value back up, with possible extensions. The stock will continue to be traded during this time period, as long as it complies with other NYSE rules.

The company has plans in the works to fix the problem, although it does not mean it will be able to bring the stock price back up.

David J. Paterson, President and Chief Executive Officer of AbitibiBowater said this is not unique to the company, and many others are facing the same challenges during these tough economic times. "The company remains committed to its $1-billion debt-reduction target and is currently exploring several options to address upcoming debt maturities, inclusive of asset sales," he added. “At this point, we will come up with the best plan possible. We can’t guarantee it will work, but we are confident it will,” says Jean-Philippe Cote, Director of Public Affairs and Government Relations.

He added one measure the company is looking into is selling hydro assets in Ont., but nothing else specific at this point.

AbitibiBowater's common stock will stay listed on NYSE under the symbol "ABH" but will be assigned a ".BC" symbol extension to signify the company is not currently in compliance with NYSE's continued listing standards.

The company will stay listed with the Toronto Stock Exchange for now, since it is still within the rules there.