The CCAA scene: recent and notable

On May 4, 2010, AbitibiBowater Inc. announced that it and certain of its Canadian and US subsidiaries filed with the court in Canada a draft Plan of Reorganization and Compromise and with the court in the US a draft Debtors’ Joint Plan of Reorganization. Abitibi announced that non-disputed pre-petition secured, administrative, debtor-in-possession and other priority claims would be paid in full in cash (or satisfied as otherwise agreed), unsecured claims would receive a pro rata share of equity in a reorganized Abitibi and its current common stock would be cancelled (with common shareholders not recovering). Abitibi reported that it must secure exit financing and complete efforts regarding labour costs and pension issues and satisfy other conditions in the reorganization plans before exiting from CCAA and Chapter 11 protection. www.lexology.com/library/detail.aspx?g=8b024c90-8bbd-4ed9-ac2a-d11dc543e9e4&l=7EKBFJT