Papermaker AbitibiBowater has gone into US ‘Chapter 11’ bankruptcy protection and its Canadian equivalent, after deciding it had no viable alternatives to previously-announced refinancing proposals for its Bowater and Abitibi-Consolidated subsidiaries. The company says it plans to use the process to “deal decisively” with its debt burden for the benefit of all stakeholders. The Company's normal day-to-day operations will continue during the restructuring process. In a statement this week, directors said the decision had been made after careful deliberation, consultation with its advisors and extensive consideration of all other alternatives. It has entered into a financing commitment with Fairfax Financial Holdings and Avenue Management for debtor-in-possession (DIP) financing totalling approximately US$200 million for certain of its Bowater subsidiaries. In addition, its Abitibi-Consolidated subsidiary has entered into an amendment providing for the continuation of its existing securitisation program for its accounts receivable, in the approximate amount of US$210 million. These arrangements are subject to approval of the Courts in both the United States and Canada and will allow the Company to meet current operating needs, including wages, benefits and other operating expenses. Additional financing options are currently under consideration. Chairman Dick Evans says an exhaustive examination of recapitalisation options had taken place over many months: “The board and management believe the actions initiated will allow the company to make the necessary changes to ensure the long-term viability of the Company within a process that ensures fair and equitable treatment for all stakeholders, while allowing it to continue to meet the needs of its customers." More information at www.abitibibowater.com AbitibiBowater produces a wide range of newsprint, commercial printing papers, market pulp and wood products, and is eighth-largest publicly traded pulp and paper manufacturer in the world. AbitibiBowater owns or operates 23 pulp and paper facilities and 30 wood products facilities in the USA, Canada, the UK and South Korea. Marketing its products in more than 90 countries, the company is also among the world's largest recyclers of old newspapers and magazines.