Prince George, B.C.- AbitibiBowater’s turning to plan”B” in an effort to avoid bankruptcy.

 

The company is now looking at what it calls “new restructuring alternatives” after terminating  it’s efforts to  exchange about $1.8 billion in debt for new offerings with a higher interest rate. The company had tried five times, but failed, to fully exchange that debt.

 

In a release, Abitibi Bowater CEO David J. Paterson is quoted as saying "We are optimistic that we will be able to work constructively with all of our lenders, debt holders and other constituencies to successfully implement an alternative restructuring of our overall debt." The release goes on to say that AbitibiBowater "is currently in active discussions with lenders and debt holders of its Bowater Inc. subsidiary to restructure Bowater's debt and implement alternatives for maintaining adequate liquidity levels."

 

Faced with declining demand for newsprint, AbitibiBowater closed several facilities across the country, including its holdings in Mackenzie.