AbitibiBowater needs debtor financing, bankruptcy court told
By APSaturday, May 2, 2009
AbitibiBowater needs debtor financing
MONTREAL — Insolvent U.S. newsprint maker AbitibiBowater says it desperately needs a cash infusion from debtor financing after losing $2.2 billion last year.
The company’s laywer, Sean Dunphy, told a Quebec court Friday that the newsprint producer needs the proposed $100 million financing to provide it with a cash cushion to operate and meet its large payroll.
The Quebec government is proposing to guarantee a so-called debtor in possession loan from Bank of Montreal.
U.S. Bankruptcy Court has approved a separate $200 million DIP financing for the company’s Bowater subsidiary.
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