AbitibiBowater Adviser Testifies For Ch. 11 Plan

Law360, New York (October 7, 2010, 6:36 PM EDT) -- AbitibiBowater Inc.’s chief restructuring adviser testified Thursday in support of the company’s Chapter 11 plan, fending off allegations by creditors of the company’s subsidiary Bowater Canada Finance Corp. that the plan treats certain intercompany claims unfairly.

Stephen Zelin, a senior managing director at Blackstone Advisory Partners, took the stand in the U.S. Bankruptcy Court for the District of Delaware and defended the debtors’ separate treatment of the BCFC noteholders’ $620 contribution claim — the main obstacle to ending the newsprint producer’s 18-month bankruptcy.

The noteholders —...
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