AbitibiBowater seeks Chapter 11 protection
Posted by Emily Dilling on April 17, 2009 at 5:01 AM
Newsprint company AbitibiBowater Inc.is seeking bankruptcy protection in light of its US$8.78 billion debt, Bloomberg reported Friday.
The company, based in Canada, filed in a U.S. Bankruptcy Court this week and plans to do similarly in Canada without delay. AbitibiBowater's Chief Executive Officer David Paterson said the decision to file was reached after "all other viable options to recapitalize our long-term debt were exhausted."
The company, based in Canada, filed in a U.S. Bankruptcy Court this week and plans to do similarly in Canada without delay. AbitibiBowater's Chief Executive Officer David Paterson said the decision to file was reached after "all other viable options to recapitalize our long-term debt were exhausted."
The newsprint company had struggled against the drop in demand for paper in the North American market, as more newspapers move to online formats. Attempts to restructure its debt have proved unsuccessful, as creditors failed to come to the company's aid and refinancing plans are not able to counter the amount of money owed, Bloomberg reported.
The bankruptcy filing, which comes amid a 33 percent decline in demand for paper, a 27-year high for the industry, also threatens the survival of pulp and paper mills.
"It's to early to know which mills will come out the other side of the bankruptcy process," Paul Quinn, a paper and forest products analyst, told Bloomberg.
The bankruptcy filing, which comes amid a 33 percent decline in demand for paper, a 27-year high for the industry, also threatens the survival of pulp and paper mills.
"It's to early to know which mills will come out the other side of the bankruptcy process," Paul Quinn, a paper and forest products analyst, told Bloomberg.
0 TrackBacks
Listed below are links to blogs that reference this entry: AbitibiBowater seeks Chapter 11 protection.
TrackBack URL for this entry: http://www.editorsweblog.org/mt/mt-tb.cgi/17854
Leave a comment