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AbitibiBowater Gets Court OK for DIP Financing

May 7, 2009 (Press Release) - AbitibiBowater Inc. ("AbitibiBowater" or the "Company") and its Abitibi-Consolidated Inc. ("Abitibi") subsidiary today announced that an order from the Quebec Superior Court in Canada has been obtained authorizing Abitibi to enter into a loan agreement with Bank of Montreal for debtor-in-possession financing which will be guaranteed by Investissement Quebec (the "Abitibi DIP Agreement"). The Abitibi DIP Agreement will support AbitibiBowater's business continuity by providing additional short-term liquidity while the Company continues to develop its restructuring plan.

The Abitibi DIP Agreement will be among Abitibi, as borrower, and Bank of Montreal, as lender, and will be guaranteed by Investissement Quebec, as sponsor. The Abitibi DIP Agreement will provide for borrowings in an aggregate principal amount of up to $100 million for Abitibi (the "DIP Facility"), of which a minimum undrawn availability of $12.5 million must be maintained at all times.

The outstanding principal amount of loans under the DIP Facility, plus accrued and unpaid interest, will be payable in full at the earliest of: (i) November 1, 2009; (ii) the effective date of a plan of reorganization under the Companies' Creditors Arrangement Act in Canada or Chapter 11 of the United States Bankruptcy Code in the U.S.; and (iii) certain other events.

More information about AbitibiBowater's restructuring process can be found at www.abitibibowater.com

SOURCE: AbitibiBowater




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