AbitibiBowater Backstop Deal For $500M Offering OK'd

Law360, New York (June 25, 2010, 6:01 PM EDT) -- Bankrupt newsprint producer AbitibiBowater Inc. has received court approval for a backstop commitment agreement with some of its unsecured noteholders for a rights offering of up to $500 million.

The company said in a statement Friday that the U.S. Bankruptcy Court for the District of Delaware had approved the deal. The approval will aid AbitibiBowater's exit financing efforts, it said.

“We are pleased with today's court approval which supports our exit financing efforts. This is another important step forward as we look ahead to the company's...
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