AbitibiBowater Gets Funding Offer from Steelhead, Fairfax
April 3, 2009 (Press Release) - AbitibiBowater Inc.and its Bowater Inc. subsidiary responded to the announcement by Steelhead Partners, LLC and Fairfax Financial Holdings Limited 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 CFO.
"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," Harvey said.
SOURCE: AbitibiBowater Inc.