MONTREAL, April 2 /PRNewswire-FirstCall/ -- AbitibiBowater Inc. ("AbitibiBowater") and its Bowater Incorporated ("Bowater") subsidiary today responded to the announcement by Steelhead Partners, LLC and Fairfax Financial Holdings Limited (TSX and NYSE: FFH) regarding their intention to negotiate to arrange an aggregate of at least $50 million of additional funding to Bowater through Bowater's U.S. credit facility. The proposed financing is subject to negotiation of specific terms with the lending syndicate participating in Bowater's credit facility and execution of definitive agreements.
"We appreciate Steelhead's and Fairfax's confidence and willingness to support our restructuring initiatives. AbitibiBowater's efforts will now be directed at obtaining support from our banks to bring Steelhead and Fairfax into our lending syndicate," stated William G. Harvey, Senior Vice President and Chief Financial Officer. "We believe the additional funds proposed to be made available by Steelhead and Fairfax would provide us with sufficient short-term liquidity while we continue to address our restructuring of Bowater's debt. The approval from and support of our banks in this process is a crucial step to a successful outcome."
AbitibiBowater produces a wide range of newsprint and commercial printing papers, market pulp and wood products. It is the 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 located in the United States, Canada, the United Kingdom and South Korea. Marketing its products in more than 90 countries, AbitibiBowater is also among the world's largest recyclers of newspapers and magazines, and has third-party certified 100% of its managed woodlands to sustainable forest management standards. AbitibiBowater's shares trade under the stock symbol ABH on both the New York Stock Exchange and the Toronto Stock Exchange.
Forward-Looking Statements
Statements in this report that are not reported financial results or other historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. They include, for example, statements about the proposed additional funding by of Steelhead and Fairfax through Bowater's bank credit facility and the expected impact on our short-term liquidity, as well as our overall restructuring plans. Forward-looking statements may be identified by the use of forward-looking terminology such as the words "will," "intend," "may," "believe," and "expect" and other terms with similar meaning indicating possible future events or potential impact on the business or other stakeholders of the Company and its subsidiaries. The reader is cautioned not to place undue reliance on these forward-looking statements, which are not guarantees of future performance. These statements are based on management's current assumptions, beliefs and expectations, all of which involve a number of business risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, but are not limited to, the ability to negotiate definitive agreements for the proposed funding with the lending syndicate participating in Bowater's credit facility and the condition of the U.S. credit and capital markets generally.
Additional factors are detailed from time to time in the Company's filings with the Securities and Exchange Commission (SEC) and the Canadian securities regulatory authorities, including those factors contained in the Company's Annual Report on Form 10-K, as amended, for year ended December 31, 2007 and Current Report on Form 8-K dated February 9, 2009, each under the caption "Risk Factors." All forward-looking statements in this report are expressly qualified by information contained in the Company's filings with the SEC and the Canadian securities regulatory authorities. The Company disclaims any obligation to update or revise any forward-looking information.
ABITIBIBOWATER INC. - ENGLISH
CONTACT: For Investors: Duane Owens, Vice President, Finance, (864)
282-9488; For Media: Seth Kursman, Vice President, Communications and
Government Affairs, (514) 394-2398, seth.kursman@abitibibowater.com
