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AbitibiBowater Gets Debt Restructuring Extension

By 250 News

Tuesday, March 24, 2009 03:56 AM

Mackenzie, B.C.- AbitibiBowater has dodged the bankruptcy bullet again after being granted an extension to come up with a plan to restructure a $1.8 billion dollar debt load.
 
The company now has until 11:59 Wednesday night (EDT) to come up with some sort of deal with its lenders.
 
This is the third extension granted to the company.
 
AbitibiBowater closed it’s facilities in Mackenzie last year and since then has indicated it would be willing to sell the facilities if a buyer were to come along.
  
Just a couple of months ago, Minister of Forests and Range, Pat Bell, indicated some optimism about the facilities being sold saying there have been some serious potential buyers looking at the sawmill and paper production.

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Comments

Maybe, Abitibi should consider removing the no competition clause, if there serious about selling the plant. Besides, what would they get for it. 250 million on a good day. Likely 100 million today.
it was only a couple of years go that Skeena Cellelose [a bigger pulp mill] with 2 sawmills was sold for 6 million. And the government of the day [Grodos gang ] allowed the selling of logs and the mill and sawmills never did get back on track. If you allow Grodos crew to fix the problem in Mackinezie it will for sure become a more of a ghost town than it is now. Skeena Cellolose cost the BC taxpayer millions. I hope that the fix that P BELL is promoting does not do the same.
Why in gods name would anyone give this corporation an extension to attain some form of a deal with it's lenders, and allow an extended time line for the company to come up with some form of a restructuring plan. This Company has absolutely no intention of trying to provide any form of employment within the community of Mackenzie or Canada for that matter, today or ever. As far as this company is concerned the timber supply, co gen and hydro electric facilities are the only assets that are worth anything to them and they hope to sell these assets to the highest bidder. Should this come to be realized Mr. Pat Bell will allow this transaction to happen without question even if it means the introduction of a new ghost town called Mackenzie.
I ask all of you who "have" ever worked in the forest industry to consider the comment that "downnotout" shared above. The whole area from Smithers right through to Prince Rupert and Kitimat are depressed beyond belief and yet you still see logs exported to other regions in B.C. and/or country's rather than milled in the region or our Province. Whether you like it or not you will see similar situations in Mackenzie as well if things do not change soon. You do not have the head count in Mackenzie to make a difference politically. Your Mayor is not publicly trying to lobby for the plants to be sold, re-opened or to have all the assets frozen (including timber) until the existing company Abitibibowater or other companies commit to developing a short and long term operating plan that they will be held accountable to. The local unions are not making any noise either....this type of silence in this type of situation indicates to Corporations and Government that people do not care if the industry rebounds in their community. You have to remember that Abitibi merged with Bowater for a purpose, that purpose was to solidify the American newsprint plants operational strategy. The assets in Mackenzie and Canada for that matter were and still are dispensable but at an exorbitant cost. If you wish to keep potential buyers at bay and stabilize or increase your market share would you not push the price to purchase your asset up significantly beyond it's fair market value to ensure you will not find a buyer. Mackenzie was and is worth more to Abibo shut down than operating.
The plants in Mackenzie will never be sold if the restructuring plan works in Abibo's favor. The selling price for the Plants in Mackenzie are set to high for the existing economy. I believe that if you all wish to see a forest industry of any sort in Mackenzie's future you need to find a politician with the intestinal fortitude to take on Abitibibowater like they are doing back east. Mr. Pat Bell is not the guy in my opinion. Be aware of other up and coming companies coming in under the ruse that they will operate the plants in Mackenzie once they complete a purchase. Most of these Companies are only after the timber and care not for the manufacturing facilities.