AbitibiBowater Names New Board
September 2, 2010
AbitibiBowater announced a new board of directors Thursday. The Montreal-based newsprint and commercial printing company is in the process of reorganizing in its effort to emerge from bankruptcy.
Joining Chairman Richard Evans and President and Chief Executive David Paterson are Pierre Dupuis of the Brookfield Renewable Power Fund; Richard Falconer, vice chairman and managing director of CIBC World Markets; current board member Richard Garneau; former International Paper executive Jeffrey Hearn; Sarah Nash, head of the audit committee of Merrimack Pharmaceuticals; Trio Capital Managing Partner Alain Rheaume; current board member Paul Rivet; Air Canada CFO Michael Rousseau; and former U.S. ambassador to Canada David Wilkins.
Late last month, the company announced it had obtained court approval for its exit financing plan from a U.S. bankruptcy court and reached an agreement with the government of Canada over some of its assets. The U.S. Bankruptcy Court in Wilmington, Del. is planning to hold a confirmation hearing for the plan on Sept. 24 (LFN, Aug. 25, 2010).
The company’s exit financing package will consist of $750 million in notes and a $600 million asset-based revolver. The plan also includes a $500 million rights offering to general unsecured creditors. JPMorgan will act as lead arranger on the bond offering with the help of Barclays and Citigroup. The three banks have agreed to provide $100 million each for the asset-based revolver.
AbitibiBowater filed for bankruptcy last year after it failed in its bid to restructure the debt for its Bowater subsidiary through a debt exchange.
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