Bridgewater Paper Co. Files for Administration in UK
Feb. 2, 2010 - AbitibiBowater said that its subsidiary Bridgewater Paper Company Limited (BPCL) has filed for administration in the United Kingdom. The company produces recycled newsprint.
The BPCL Board of Directors made this decision only after all other options to keep these U.K. operations solvent were exhausted, Montreal-based AbitibiBowater said.
In a written statement, AbitibiBowater said that its creditor protection proceedings and the BPCL filing for administration are separate and distinct legal processes. The possible outcomes of AbitibiBowater's creditor protection filings will not necessarily reflect on the future of BPCL in its administration filing, and vice versa. AbitibiBowater's ongoing efforts to restructure and emerge from its creditor protection filings continue to progress in the normal course.
"We recognize the impact the filing has on our U.K. employees and business partners; however, these actions were necessary and represent the best course of action going forward," stated David J. Paterson, AbitibiBowater president and CEO.
Throughout the BPCL administration filing, AbitibiBowater said that it will help ensure European customers continue to receive quality products and service, free of business interruptions.
"We remain committed to building on our many decades of sales into the international marketplace, and Europe is strategic to the Company's current and future sales efforts," Paterson added.
Joint Administrators from Ernst & Young LLP have been appointed as part of this filing and will manage the affairs, business and assets of BPCL.
AbitibiBowater said the Joint Administrators are exploring various options which will determine how the BPCL filing will unfold. All media questions related to the administration process should be directed to Vicky Conybeer at Ernst & Young at +44(0)20 7951 0868. For day-to-day business inquiries, parties should continue to communicate with their regular BPCL contacts.
AbitibiBowater is the parent company of Bridgewater Paper Company Limited through its corporate subsidiaries.