Abitibi seeks financing

August 10, 2010

AbitibiBowater Inc. is seeking approval to borrow $1.35 billion US to exit from bankruptcy, but said the fees for borrowing the money must be kept confidential, according to court filings.

The company hopes to take advantage of a recovery in the high-yield bond market to borrow most of the money by selling notes. The Montreal-based pulp and paper manufacturer filed for bankruptcy in 2009 as credit markets tightened and newspaper sales tumbled. It needs exit financing to help pay off $1.1 billion of secured, pre-bankruptcy debt.

Source: The Victoria Times Colonist