For Peter and the EC (Cap & Trade)


This information is a little old, but still very important in terms of future valuation (which is what the Judge has really asked for in the objection process).

Caution: He has asked for specifics on valuation. But as the Company points out very readily -- they are in Commodity Markets, so the Price that they receive ultimately depends on the Future Value of the Commodity. This is something that Jason probably didn't really understand. A lot of people don't.


http://forestsandclimate.org/presentations/pg2.ppt#256,1,OWNERSHIP/TENURE ISSUES IN FOREST CARBON MANAGEMENT

Page 1(Cover Page)

Page 15 (Carbon Credits in Canada could be worth over 1 Billion Dollars per year times 70 years as referenced in other documentation on the Boreal Forest (Value of Boreal Forest). Tie this into to the May 15, 2010 Agreement and into the Deloitte information.

Page 25 -- He who manages the TREES, effectively manages the CARBON.

-------------------------

You should see the values that we are being offered for just 110 acres of Forest Land that we hold.

---------------------

Submit the Bio Carbon Systems and TransCanada Energy Agreemnet as evidence.

Good Luck to you all.

I think it really is all by design

Rather than by co-incidence.

Pulp Prices -- link below, then click on each outer month for chart. May have to play around with the chart / graph to see -- but all of the outer months are back up to where there were in April and May 2010 (the time when Abitibi had net earnings due to higher commodity prices).


http://quotes.ino.com/exchanges/?r=CME_WP



Link to Lumber Continuous Chart (daily, then change format to weekly). No co-incidence -- may take some time, but that is how ABWTQ can make the statement that their will be profits until 2014.

The whole world knows that hard commodities are coming down and the softs are going back up.

cotton and sugar
bearjr1 - Tuesday at 12:35 AM

someone who knows more than me, tell me whats going on
with these 2 markets.
look at the backwardation, contango, going out for
years.
this is the kind of set up we had when oil went from
$40 to $140, and when copper went from $1 to $4

are there any shortages being reported anywhere?
crop problems?
demand from china and india?

---------------------------


The banks -- now have all of their foreclosure properties -- and will want to get rid of them -- inflate prices is the only way to sell or create an artificial demand.

Energy Conference with Boone Pickens -- you may want to see the highlights coming out from the Conference -- he briefly discussed Cap & Trade.

http://stockcharts.com/h-sc/ui?s=$lumber&p=D&b=5&g=0&id=0

Bond Prices -- I think it would have been a good idea for Peter to respond in Court with "our records show" and give the bond data to the judge after the Unsecured Creditors raised the issue. I know what you thinking -- and it doesn't matter -- or does it? He should be submitting it now as evidence.


Last Updated: 9/8/2010

Corporate Bond Search Results Wednesday, September 08, 2010


Ratings Last Sale
Include in
Watchlist Bond Symbol Issuer Name Coupon Maturity Callable Moody's S&P Fitch Price Yield
BOW.GB BOWATER INCORPORATED 9.00 08/01/2009 No NR NR C 100.000 -
ABY.GB ABITIBI CONSOLIDATED INCORPORATED 7.88 08/01/2009 Yes NR NR C 99.882 -
BOW.GK BOWATER INCORPORATED 4.32 03/15/2010 Yes NR NR C 100.000 -
ABY.GH ABITIBI CONSOLIDATED INCORPORATED 8.55 08/01/2010 Yes NR NR C 99.781 -
ABY.GN ABITIBI CONSOLIDATED COMPANY OF CANADA 7.75 06/15/2011 Yes NR NR C - -
ABY.GO ABITIBI CONSOLIDATED COMPANY OF CANADA 4.82 06/15/2011 Yes NR NR C - -
BOW.GA BOWATER CANADA FINANCE CORPORATION 7.95 11/15/2011 Yes NR NR C - -
BOW.GD BOWATER INCORPORATED 9.50 10/15/2012 No NR NR C 99.636 -
BOW.GJ BOWATER INCORPORATED 6.50 06/15/2013 Yes NR NR C - -
ABY.GK ABITIBI CONSOLIDATED COMPANY OF CANADA 6.00 06/20/2013 Yes NR NR C 99.259 -
ABY.GP ABITIBI CONSOLIDATED COMPANY OF CANADA 8.38 04/01/2015 Yes NR NR C 100.000 -
ABY.GD ABITIBI CONSOLIDATED INCORPORATED 7.40 04/01/2018 No NR NR C 99.287 -
BOW.GC BOWATER INCORPORATED 9.38 12/15/2021 No NR NR C 99.250 -
ABY.GE ABITIBI CONSOLIDATED INCORPORATED 7.50 04/01/2028 No NR NR C 99.184 -
ABY.GF ABITIBI CONSOLIDATED INCORPORATED 8.50 08/01/2029 Yes NR NR C 99.449 -
ABY.GI ABITIBI CONSOLIDATED INCORPORATED 8.85 08/01/2030 Yes NR NR C 99.983 -



Search Criteria
Bond Type: Corporate Symbol: abwtq


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Re: Valuation and Objection (comments)

ABWTQ and Other Timberland Producers are very similar

CHICAGO, Sep 01, 2010 (BUSINESS WIRE) -- Fitch Ratings has affirmed the 'BB+' Issuer Default Rating (IDR) and the 'BB+' senior unsecured debt rating of Weyerhaeuser Company (Weyerhaeuser

In Fitch's view, Weyerhaeuser does have options. Within its portfolio of timberlands is 600,000 acres of non-strategic lands that are available for sale, as well as other assets. Fitch estimates that the non-strategic acreage could be worth around $1.2 billion which Weyerhaeuser could use to restore liquidity, repay debt, buy back stock, or some combination thereof. Such actions could affect the company's debt ratings; however, the timing, composition, ability and desire are yet to be seen.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.
SOURCE: Fitch Ratings
Fitch Ratings, New York
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com
or
Primary Analyst:
Dennis Ruggles, +1-312-606-2318
Director
70 West Madison Street
Chicago, IL 60602
or
Secondary Analyst:
Sean T. Sexton, CFA, +1-312-368-3130
Managing Director
or
Committee Chairperson
David Peterson, +1-312-368-3177
Senior Director

Thank you for your efforts.


In light of the information that your provided in your summary, I have a couple of comments and questions.

Could you provide a fax number?

I am away on Friday and on Monday of next week, so I would like to respond tomorrow (if at all possible).

Thank you.

Consensus says

No EC - motion denied -- but share price may end higher on the close. Only a guess.

ABWTQ hired Deloitte Consulting -- so they may perform tasks that may in the end turn out favorable for equity. Who knows.

My Take

The company said the settlement payment will be made to the new Canadian entity after it exits bankruptcy.

1. THe deal is obviously a shut-gun deal to avoid the shareholders tomorrow.

2. Minister Jim Flarherty has said publicly he does not want the shareholders to be part of the new company (in a video where he talked about the forest industry being restructured (back in the spring -- just like GM).

3. In the event that Prem Watsa or Tembec do make an offer (or someone else in the next few days), this may have been a condition from the liability side to get it to go through.

4. Pulp Prices are soaring and Lumber Futures are about to soar (see chart -- within days). Apparently GS cannot hold it back any longer according to some big hedge traders.

http://stockcharts.com/h-sc/ui?s=$lumber&p=D&b=5&g=0&id=0

Look at daily chart. Look at weekly chart. Look at the individual months. Man is this going to soar.

Read Paterson's statement -- based on fair value for those assets. Why not wait 5 weeks buddy?

Everyone in the world knows that Pulp Prices and Lumber is going up. Wall Street says so -- that's why the crude hedges are coming off. ABWTQ's future freight charges will fall dramatically.

-------------------------

ABWTQ Peak Timber-Brookfield-EC

Brookfield Infrastructure filed another 6-K tonight.

http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=7117918

Lots of stuff on Timber Valuation.

About 3/4 down, they talk about Peak Timber and Future Pricing.

This is evidence. Sometimes lawyers have a problem with Futures and Commodity Markets (like Pitt77 adressed this morning).

Simply put, they do not understand them -- they like hard numbers. Unfortunately that is not the way Commodity Markets Function.

ABWTQ should shut down all flexible Lumber Operations right now (or operations where there is no back-to-back sales contract). Sure there might be some mitigation required for their contracted inputs, but -- The Futures Market is telling them that out four or five months, you can get a better sales price.

And a BETTER SALES PRICE means more profits and a better share price for selling the entire company.

If Abitibi thinks their timberlands are worthless -- then offer them $0.01 (1 penny for them) -- they will be happy.

We will be opportunistic.

------------------------

Note: we will see if there are any SEC filings today or on Monday -- In talking with some hedger buddies this afternoon -- Fairfax may still be looking for a better deal. So you might find it advantageous to call him. He just might want to make a side deal for more shares (AKIN to the Patheon deal).

The real question is :


why did the Executive Management Frank (May and June 2007, Owens - March 2008 and October 2008, Patterson - October 2008 and March 2009) and The Board of Directors not do anything about it.

truth is they are lining their own pockets according to one Big Private Equity guy -- they never intended to look out for shareholders -- but rather their own pockets -- at that time.

depending on the outcome of this -- there may be other legal firms (like the ones popping up on the Dynegy case) that will initiate class action.

ergodocs did a lot of work on this, only to have the SEC say no foul.

yet, SEC and other WS firms are now readily saying it was real, but we needed to do it for the public interest to help restructure industries (in particular the ones with historical strong union ties) to become more competittive in the global world.

ironically, some big oil companies will be next on the NS scene, as they will be forced to either sell their companies outright, or have their debt eliminated through BK process, as we move away from fossil fuel economies (cap & trade).

from what I understand CIBC World Markets and Goldman Sachs devised a plan back in 2005 to "deleverage the entire" economy. the premise was based on the CDS and Naked Shorting Market.

face it -- the stock market is a complete fraud -- which is why it is run on algorithimic programs, rather than a true buy - sell market.

it is a license to steal.

Looks like we got a stock promoter - delete


ABWTQ looks like to go up huge soon! 39 minutes ago Set prices high!
Possible to 20 cents+!

Sentiment : Strong Buy
Rating :
(No ratings)Rate it: yanshengc

Male
Houston, Te...


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More Food for Thought

This is what I really think is happening with ABWTQ behind the scenes.

Now - I do not know for sure. Maybe there is a two-party deal or a three-party deal in the works as in the Dynegy-NRG-Blackstone scenerio. Of course I find it interesting that Wayzata owns both Dynegy and Tembec shares.

--------------------------------

This too may explain all of the "goofing around" nonsense with the Bonds in the morning -- which by the way is evidence and hopefully the lawyer is smart enough to realize it at this point.

-----------------------


August 20, 2010
BY LIAM DENNING

What do rampant miners have to do with buyout firms playing pass-the-parcel and dabbling in leveraged loans? They all speak to private equity's lingering hangover.

BHP Billiton's $39 billion cash bid for Potash Corp. of Saskatchewan is, in effect, a leveraged buyout arbitraging what might be called the deflation trade. "Deflationistas" buy fixed-income instruments like high-grade debt and sell equities. BHP can take advantage of this by issuing debt at low yields to buy growth assets that have fallen out of favor, like Potash.

---------------------

Pulp and Lumber futures markets -- very few companies in those industries are reflecting a FULL CYCLE COST Scenerio in terms of their asset base -- which in itself is very telling (bottom of the cycle).

Hence the reverse leveraged buy-out idea. Example: Company A buys Company B -- on leverage -- then sells more of its own shares at a very high price compared to the current market multiple -- simultaneously with a run in the commodities that it sells in the marketplace. Brilliant scheme - if it works -- more involved too.

-----------------

On Newfoundland issue -- very interesting -- Gov't does not appear to back Danny Williams right now. Most people think the guy is crazy and will not win, despite his retoric intra-province.

Federal Gov't is upset -- because it shows that NewFoundland (as a Province) is NOT open for Business. Therefore jobs will go elsewhere.

Even Business TV Personalities that dissed ABWTQ are now in favor of them -- go figure. Some of these guys deal with the big hedgers and arbitragers, so I believe that something is in the works.

What equity gets out of it, I do not know. But the word on the street is that Fairfax may not be as happy as they were before.

Interesting Relationship

ABWTQ and TMB trading almost point for point together.

1.83 and 0.038
1.80 and 0.0355
1.79 and 0.035
1.88 and 0.04
1.81 and 0.039
1.86 and 0.0395

TMBCF paid back 55 million in LT debt. ABWTQ paid-back 166 million in DIP.

A couple of incidentals on both sides and we are pretty much back to where it began.

I don't know if someone is screwing with us now or not.

Lumber & Wood up 10% y over y

Pulp Prices - back-end of curve up big compared to when ABWTQ filed its POR.

In a commodity type business, valuation comes from the products / commodities it buys and sells.

As the crude derivative unwind continues, ABWTQ's Freight Costs will fall dramatically -- this is why you need a forensic accountant. To see what they have in their budget.

More evidence below of an IMPROVING MARKET for ABWTQ.


DJ MARKET TALK: CME Lumber Continues Higher As Cash Firms

Aug 19, 2010 (Dow Jones Commodities News via Comtex) -- 1438 EDT [Dow Jones]--CME lumber prices continued to move higher Thursday on the back of a cash market that remains firm to higher. Traders said mill sales offices were busy, although not as hectic as Monday or Tuesday.

"Cash has an upward slant," even though outside markets might argue for price pressure, a market consultant said. Stocks are down, and the U.S. Dollar is up, for instance, he said. Spread trading was evident throughout the day, and buying in the Nov contract late in the session narrowed the gap between them. The Sep contract closed $5.70 per 1,000 board feet, or 2.71%, higher at $215.70, while Nov was up $3.00, or 1.41%, at $216.00. Jan ended $1.80, or 0.78%, higher at $233.20. (LWA)

Contact us at 913-322-5179 or lester.aldrich@dowjones.com
(END) Dow Jones Newswires
08-19-10 1449ET

NB: Cash may be off a little tomorrow, because it is Friday. Early deals done.

---------------------

WASHINGTON, Aug 19, 2010 (Dow Jones Commodities News via Comtex) -

Intermodal trailer and container volumes
were up 20.8%, and/but carload freight was up 7.1% during the
week ended August 14, in comparison with the corresponding week last year, the Association of American Railroads reported Thursday. From last year, 3 of the 19 carload freight groups registered losses.

(changes in percent, are compared with the same week a year ago)

Cumulative, 32 weeks
Week Ended Aug 14 Ending Aug 14
Traffic 2010 2009 % chg 2010 2009 % chg
Carloads Originated 295,948 276,239 7.1 9,041,726 8,436,199 7.2
Intermodal Traffic
Trailers 33,908 30,182 12.3 1,024,062 1,012,137 1.2
Containers 199,859 163,306 22.4 5,759,758 4,941,760 16.6
Total 233,767 193,488 20.8 6,783,820 5,953,897 13.9

Est Ton-Miles (in Blns) 32.5 29.9 8.7 994.9 918.6 8.3

Carloads Originated
--Cumulative, 32 weeks--
2010 2009% chg 2010 2009% chg
Grain 18,959 20,789 -8.8 676,519 599,549 12.8
Farm Products, Ex. Grain 1,039 755 37.6 27,472 24,472 12.3
Metallic ores 7,721 4,667 65.4 176,930 92,524 91.2
Coal 136,297 129,657 5.1 4,097,597 4,139,456 -1.0
Stone/sand/gravel, crshd 19,315 16,310 18.4 531,641 486,878 9.2
Nonmetallic Minerals 5,813 5,568 4.4 164,868 143,209 15.1
Grain mill products 7,927 7,730 2.5 270,646 258,767 4.6
Food/kindred products 7,652 7,900 -3.1 251,320 247,261 1.6
Primary forest products 1,694 1,660 2.0 52,907 47,494 11.4
Lumber/wood products 2,538 2,381 6.6 84,006 75,869 10.7
Pulp, paper/allied prod 6,082 5,649 7.7 179,937 183,026 -1.7


NORTHERN BLEACHED SOFTWOOD KRAFT PULP (CME:WP)

Chicago Mercantile Exchange (CME) › Food and Fiber › NORTHERN BLEACHED SOFTWOOD KRAFT PULP (WP)
Market Contract Open High Low Last Change Pct Time
WP.Q10.E
Aug 2010 (E)
960 960 969 0 0.00% set 14:23
WP.U10.E
Sep 2010 (E)
931 931 931 936 0 0.00% set 14:23
WP.V10.E
Oct 2010 (E)
875 875 875 914 0 0.00% set 14:23
WP.X10.E
Nov 2010 (E)
849 849 849 887 +3 +0.34% set 14:23
WP.Z10.E
Dec 2010 (E)
823 823 823 861 +6 +0.70% set 14:23
WP.F11.E
Jan 2011 (E)
798 798 798 837 +7 +0.84% set 14:23
WP.G11.E
Feb 2011 (E)
780 780 780 816 +6 +0.74% set 14:23
WP.H11.E
Mar 2011 (E)
769 769 769 802 +5 +0.63% set 14:23
WP.J11.E
Apr 2011 (E)
765 765 765 792 +3 +0.38% set 14:23
WP.K11.E
May 2011 (E)
763 763 763 787 +3 +0.38% set 14:23
WP.M11.E
Jun 2011 (E)
762 762 762 783 +3 +0.38% set 14:23
WP.N11.E
Jul 2011 (E)
760 760 760 779 +2 +0.26% set 14:23
WP.Q11.E
Aug 2011 (E)
759 759 759 775 +1 +0.13% set 14:23

More Evidence for Pulp and Lumber

Wow - lumber chart looks solid through February 2011

http://www.glgroup.com/News/Pulp-Sags-$30-50-admt-But-The-4Q-May-Bring-Recovery-50080.html


Summary
After 12 monthly priceincreases (out of 14 consecutive month) NBSK topped out at$1020-1040/admt. Now prices have declined by $30-50 for many Canadianmills. Although Arauco (Radiata Pine) and Canfor only reduced theirprices $20/admt.
Many producers said global demand is still strong.
The summer months are traditionally the slowest because of widespread vacations.
It's the perfect time to draw down on inventories.
The 4Q historically been the busiest and now inventories may have to be rebuilt.

Analysis
It came as no surprise tomany industry observers that orders began to fall off in May and to staydown in June and July. Why not? Most papermills take 2-4 weeksdowntime to allow their employees to take some or all of their 4-6 weeksvacation. Besides, many of these papermills' customers are also onvacation.
Prices had been indexing upward since May, 2009 on amonthly basis. Purchasing Managers were looking for an opportunity topush back at their pulp suppliers and the 3Q of 2010 gave them theperfect opportunity. The pulp producers should have recognized this butwere reluctant to take any downtime themselves since the summer monthsare the most convenient for logging any hard-to-reach forests.
At this point it should prove helpful to look at the global situation:
1. pulp demand has been increasing by about 5%/year for the past 30-40 years
2. demand now is estimated to be 58 million mt.
3. total supply from all the mills in the 26 countries (20 majors) is 59 million mt.
4. there is only one mill actually under construction -the jv between Arauco and Stora-
Enso in Uruguay. Also, just now starting their expansion is Ilim Holding's mill
at Bratsk in Siberia.
5. China has recently or is soon to start up high production UCF and CFS machines
that will consume one million tons+ of market pulp.
6. India is rapidly expanding its paper industry and is expected to rapidly increase its
consumption of market pulp - especially eucalyptus, acacia and softwood.
7. Fluff Pulp and Tissue/Toweling will increase their demand by 5%+this year.
Thespread between demand and supply is much too narrow especially in lightof the fact that there's only one mill being built. It is a safe betthat pulp prices will recover and then continue their upward marchstarting in the 4Q

Probably Nothing, though


Greedy Naked Shorts sold at $0.05 -- counting on cancellation (you know what happens then -- basically a zero out and a licence to steal from IRS et. al). Had to cover. Will likely go back down, so technical chart does not look so good.

Lumber up at the present time.

---------------


Then again, $0.04 offers a great deal to an industry competitor -- little risk.

If you financed yesterday, when Canadian Dollar was higher -- pay off all secured and DIP and a few others (creditors). Then buy 3% and on and on. And re-finance the rest -- what a steal.

I noticed Tembec's bid increased and a subsequent sale roughly 20 seconds apart from when ABWTQ went up.

With all the hype on the NF issue -- what a perfect time to grab some.

Pulp Inventories grew but not by much

http://www.europulp.net/

Pulp inventories grew in July 2010, but not by much. China is going to have to buy soon. Inventories, there are falling and with reconstruction demands coming -- pulp prices should move higher for the remainder of the year.

Lumber -- looks like we are beginning that run.

Perhaps pressure, as a result of the Newfoundland issue and heavy buying ahead of winter to build inventories for next spring, combined with buying from China and Pakistan could create much stronger prices.

Lumber futures above $350, could cause ABWTQ to revise their NAFTA complaint against The Province of Newfoundland up to $750 million from $500 million.

Drop is mostly due to SC of Canada Appeal


That said, the word on the street was that Wall Street (and their respective clients and / or a possible suitor) were ticked-off that they could not pick up enough shares the day the equity committee was denied.

I thought we would see $0.03 / share -- but now I think we go lower to allow a big U.S. Lumber Company to run with it and force a massive battle for the Abitibi Timerlands.

At $0.01 / share (or even $0.02 / share) -- how many shares can u pick up. My guess is 3% (file it and say holding for investment purposes and may make a bid later). Price rises and they either sell out or buy it outright -- after applying to buy more shares.

Danny Williams is going down in the Province if he loses. And Abitibi cannot afford to lose either -- The Canada-U.S. Softwood Lumber Dispute -- Part II.

Abitibi's Timberlands vs. a Newfoundland Province -- I love it.

Lumber Industry supportive of Electr. Changes

http://www.newswire.ca/en/releases/archive/August2010/17/c3281.html


Huge Windfall. I would expect that Abitibi Management will need to put out a similar PRESS RELEASE.

Unless Abitibi is saying that they cannot compete -- in which case an ARGUEMENT (in front of the judge) for a full Chapter 7 Liquidation.

Here is the Star Article on lower Electr.


August 17, 2010
Robert Benzie
Rob Ferguson Queen’s Park Bureau

Homeowners could be zapped with an extra $48 in annual hydro costs after Premier Dalton McGuinty’s cabinet quietly approved a break on electricity rates for huge industrial users, the Star has learned.
The move extends time-of-use pricing now in effect for homeowners — allowing them to use electricity cheaper at off-peak times, such as nights and weekends — to major firms like Ford, Vale Inco, and Imperial Oil.
It will give big power-consuming sectors an incentive to conserve energy, cut their costs and, the government hopes, keep manufacturing, mining and refining jobs in Ontario.
“We’ve basically been overpaying,” Adam White of the Association of Major Power Consumers of Ontario said Monday.
“Large users who buy power at off-peak times are subsidizing everyone else.”
Liberal sources say ministers signed off on the change two weeks ago, but it has yet to be formally announced.
That’s because the government is trying to devise a way of selling the scheme to a public already wary of rising electricity prices due to the new 13 per cent harmonized sales tax and various green energy fees.
The policy shift means the electricity system will have to make up the difference in what big power users were paying by collecting it from all other customers — including millions of homeowners, thousands of businesses, along with hospitals, schools, municipalities and universities.
Sources said that change would increase the price of power by between $1.50 and $4 per megawatt hour each year. For the average homeowner that’s a hike ranging from $18 to $48 annually under something called the “global adjustment mechanism” in monthly hydro bills.
Government officials insisted Monday night that “we’re talking a neutral impact here for residential and commercial users, which in exact terms means a less than one per cent variation in the short term up or down.”
“And in the medium and long term it would provide savings to all types of users,” said an official.
The global adjustment is a method for charging electricity users money over and above the direct cost of the power they consume. The global adjustment covers the investments made in electricity generating facilities and rises every year. Under the change, about 7 per cent of the adjustment shifts from major industrial consumers to other businesses and homeowners.
Depending on your local utility, the global adjustment is either buried in the tally on hydro bills or listed as a separate line item. As of June 2010, the global adjustment fund sat at $4.6 billion.
“There’s been some sensitivity to the cost,” acknowledged White, whose organization representing more than 40 of the largest electricity consumers has been pushing for the new policy for years.
“I’ve been in to see four different ministers of energy on this over time.”
White said the existing industrial rate structure is “punitive” to major customers because it is two-thirds based on the average cost of producing electricity in Ontario, and one-third on the floating market price — even though most industries are operating during evenings and other off-peak times.
“We’ve got to have policies to encourage customers to use less and large industrial users are ready,” he added.
Companies can save money on power by delaying production shifts, for example, on hot summer days when the price of electricity is highest, and making up production at other times. That means less stress on an electricity grid also powering homes, institutions, and businesses across the province.
Energy and Infrastructure Minister Brad Duguid has argued that the measure would increase conservation by encouraging major power users to run factories, mines, refineries, and mills when demand is lower.
“Shifting usage to off-peak times helps to reduce costs to the system benefitting all users, because it avoids additional costs incurred by building new generation (power stations),” said one government official.
“Conservation is also important in helping us phase out coal usage, which runs on peak time,” said the official, referring to the 2014 date when Ontario’s last smog-producing coal-fired plant at Nanticoke shuts down.
But some Liberal strategists are worried about the political cost of increasing hydro bills yet again with an election looming in October 2011.
“I don’t understand the politics of this,” said one Grit, noting the government has already given businesses corporate income tax cuts as well as the HST to streamline their costs.
Last week, the government did another U-turn on its controversial “microFIT” program to buy solar power from small producers with panels in their fields.
The solar subsidy, which Duguid had cut 27 per cent on July 2 because it would have cost electricity ratepayers an extra $1 billion over 20 years, was essentially restored for all applications received by that date.
That capitulation followed an outcry from farmers who threatened to defeat more than a dozen rural Liberal MPPs in the next election.
________________________________________
A list of the 42 companies receiving electricity breaks from the Ontario government:
Abitibi-Bowater Inc.
Agrium Inc.
Air Liquide Canada Inc.
Air Products Canada Ltd.
Algoma Steel Inc.
ATC Panels
Atlas Tube ULC
Cameco Corporation
Cascades Inc.
CGC Inc.
Arcelor Dofasco Inc.
Enbridge Pipeline Inc.
Essroc Canada
Ford Motor Company of Canada
Gerdau Ameristeel Corporation
Goldcorp Inc.
Honeywell Nylon Canada Inc.
Imperial Oil
Invista (Canada) Company
Irving Tissue
Ivaco Rolling Mills
Lafarge Canada Inc.
Marathon Pulp Inc.
Neenah Paper Inc.
NOVA Chemicals
Novelis Inc.
Omya Canada Inc.
Petro Canada
Placer Dome
Praxair Inc
Saint-Gobain Ceramics Materials Canada Inc.
Shell Canada Limited
Sifto Canada Inc.
Spruce Falls Inc.
St Marys Cement Company
Suncor Inc.
Terra International (Canada) Inc.
The Canadian Salt Company Limited
Vale Inco
Wescast Industries
Weyerhaeuser Company Limited
Xstrata Canada Corporation
Source: Association of Major Power Consumers of Ontario

Abitibi to pay much less for electricty


Front page of Toronto Star article on off-peak electricity rates in Ontario. Residential Rates (off-peak) were partially subsidized by industrial rate-payers.

Listed about twenty big industrial clients in Ontario -- #1 was Abitibi Bowater.

Buried on Page 19 (after Blurb on front page).

------------------------

The deal was signed two weeks ago by the Gov't Officials, but was kept quiet until now. Truth is, this was supposed to happen five years ago, but a lot of politics were involved to keep industrial rates where they were. In a globalized market -- you cannot do that for the longer-term.

No wonder Abitibi and Tembec want to sell its remaining hydro dams. Value just went up. Private buyers will be able move a lot of off-peak power around. Not as much advantage for ABWTQ to hold these.

Note: Lumber and Pulp Prices up huge today.

I will post as soon as I can -- I actually read it first hand this morning at a restaurant.

Ergodoc and EC and others.


Pages 1 through 7 are worth noting.

http://www.opfa.ca/newsletter/Issue195sept2009.pdf

---------------------------


Please do not get lost in the details of too much information re: the appeal.

What you need to demonstrate is really that Management / The Trustee et. al is not looking out for s/her interests.

The Judge does not care how many employees they have or how large it is (really). But I think it is good that you quickly show that they have assets (subs) not under BK.

----------------------

The strategy can be simplistic or it can be complicated, depending on how you approach it.

------------------

If Duane Owens wrote a response saying do not communicate, then that is evidence.

------------------

If ABWTQ values its Timberland at $0.00, then make an offer in court to buy all of their Timberland and Rights for $0.01 (1 penny). They say no. The judge says, I thought you said they worth worthless. Then if constructed properly, you win the argument.

-------------------

Use the Cap & Trade video of ABWTQ and Walker Industries (provided yesterday) as evidence.

As far as the premiums paid to Secured B/H and others -- I thought the premium paid in the Calpine case was 3%, but I could be wrong. Some debt in 2009, 2010 already extinguished so no need to pay a huge premium.

------------------------

That's it for me -- I really have nothing more to add, but I will be watching closely.

----------------------

PS I thought the Standing Order from yesterday's docket was kind of interesting.

I also thought the Potash's Board Statement from this morning was also interesting.

GLTA.

Links for donation of CarbonCredits


By ABWTQ in 2009 -- read articles. Frame of Mind is that they recognize the value of trading carbon credits.


http://www.carbonoffsetsdaily.com/news-channels/europe/abitibibowater-provides-carbon-credits-to-offset-ifra-expo-21880.htm

http://www.ifra.com/website/news.nsf/wuis/56D2A67ACFDBC2C2C12576310038B725?OpenDocument&PRSARCH&E&;

http://www.risiinfo.com/technologyarchives/environment/IFRA-plans-carbon-neutral-expo-with-carbon-credits-from-AbitibiBowater.html

Ergodoc and Others - Various Info.

Notes on Active Currency Management:

Since ABWTQ is an international corporation, Management (who is paid very well to do this -- inclusive of my previous comments on this board to my prior discussions with Owens and Kursman on the issue) -- Management needs to be be diligent in this regard.

If they are not -- they are simply demonstrating their lack of regard for shareholders.

As I have stated previously, there have been many opportunities since the merger to hedge or manage the currency risk. How many times during BK did they ask the judge to hedge. Calpine did it successfully during their BK process?

HOW MANY CEO's go out of their way to ask a BANK ANALYST what he thinks the Canadian Dollar is going to do? Answer only David Paterson, that I know of -- previous posts on Earnings Conference Call. imo, how much does Paterson and Harvey earn in salary? imo, this shows a complete disregard for shareholders.

Summary -- everything must be back to back.

Canadian Assets should be backed by Canadian Denominated Debt and

U.S. Assets should be backed by U.S. Denominated Debt.

Everyday in 2009 and in 2010, there have been opportunities to convert and manage U.S. Denominated Debt. Owens said board of directors would look at the issue -- show me the notes.

If you convert 3.8 billion U.S. debt to Canadain dollars when ratio is 1:1 or higher, then ride the Canadian dollar back down to $0.775 then lock it in (as a cap), your earnings increase and on a relative basis your debts decrease (in terms of cost).

----------------

See Note below for 2006 -- I am still not sure that Peter really understands the issue.

Other than specific items covered in the previous section, in the fourth quarter of 2006, Abitibi-Consolidated recorded an after-tax loss on translation of foreign currencies of $112 million, mainly from the weaker Canadian currency at the end of the quarter, compared to the U.S. dollar, in which most of the Company's long-term debt is denominated.

As the Canadian dollar falls -- earnings go up, but the cost of servicng debt decreases (plus interest -- plus a premium - 5% is too high, imo).

The U.S. is a currency manipulator so management must actively manage its debts and profits using currency hedges.

Nuff said.

----------------------

Other News articles that may give you some ideas.

Reuters News Service | Timothy Gardner | December 7, 2007

US Farms Could Earn $4 to $6 Billion/Year For CO2 - CCX

NEW YORK - US farmers could earn $4 to $6 billion annually by selling carbon credits -- if prices for greenhouse gas reductions in the states catch up to what they sell for in Europe, an official at a voluntary climate market said on Thursday.

"The future looks bright currently in regards to agriculture and its ability to address climate change," Will Ferretti, a vice president at the Chicago Climate Exchange, told agricultural committee of the US Commodity Futures Trading Commission in a conference call on Thursday.

Farmers earn credits on the CCX, run by Britain's Climate Exchange Plc, for keeping greenhouse gases from reaching the atmosphere.

CCX members, such as big corporations or city governments like Chicago, pledge to cut their emissions by a certain amount and time. If they fail to make the cut, they can buy "offsets" representing greenhouse gas reductions from sources such as new agricultural methods practiced by farmers.

Credits on the voluntary CCX currently cost about $1.50 per tonne, but have reached nearly $5 a tonne.

European carbon credit prices are much higher because rich countries and industries there are required by law to cut emissions under the Kyoto Protocol. Credits are currently about $30 a tonne there.

A bill that would regulate greenhouse gases is expected to be voted on by the full US Senate next year. If it becomes law, it is expected to boost prices for US carbon credits.

The main method for farmers to earn credits on CCX is "no till" agriculture, in which crop waste is left to rot in the soil, sequestering the greenhouse gas carbon dioxide in the soil and preventing it from reaching the atmosphere.

US farmers have already earned about $15 to $20 million for no till and grassland agriculture through the CCX, said Ferretti. Potentially. US farmers could sequester about 120 to 270 million metric tonnes of carbon dioxide equivalent per year, he said.

Doug Sombke, an official with the South Dakota Farmers Union, said farmers have a lot of potential to increase their earnings, but have been slow to put faith in a new revenue stream that, unlike grains or livestock, they can neither see nor feel.

Farmers also earn credits on CCX by capturing and destroying methane from manure bogs and through forestry, which sequesters carbon dioxide. Ferretti said the bourse has also recently approved the earning of credits for sustainable range land practices, and is registering the first set of offsets for that method.

(Editing by Marguerita Choy)
Story by Timothy Gardner
REUTERS NEWS SERVICE
http://www.planetark.com/dailynewsstory.cfm/newsid/45816/story.htm

-------------------------

Reuters News Service | Chris Baltimore | December 7, 2007
US House Passes Energy Bill, Bush Set to Veto

WASHINGTON - The US House of Representatives on Thursday passed an energy bill that would boost vehicle fuel economy requirements by 40 percent by 2020, raise ethanol use by five-fold by 2022 and impose $13 billion in new taxes on big energy companies.

The centerpiece of the 1,055-page Energy Independence and Security Act is an increase in the Corporate Average Fuel Economy standards to 35 miles per gallon (15 km per liter) by 2020, the first congressional boost in fuel rules since 1975.
The plan -- an amalgam of energy priorities driven by House Speaker Nancy Pelosi -- passed by 235-181 in a mostly party-line vote.

But it faces resistance in the Senate and the White House says it will reject the measure in its current form.

"Their proposal would raise taxes and increase energy prices for Americans," the White House said in a statement. "That is a misguided approach and if it made it to the President's desk, he would veto it."

Analysts say the bill is unlikely to survive intact, but a stripped-down version could become law if controversial tax and renewable electricity provisions are dropped.

Senate Majority Leader Harry Reid said he wants to call a vote on the bill before Congress adjourns later this month.
But Reid said the bill may have to be modified to survive, suggesting the controversial provisions could be dropped. "If we can't get it all, we'll get part of it," he told reporters.
Senate Republicans and the Bush administration say they will block a final bill if it includes a $21.5 billion tax package and a mandate for utilities to get 15 percent of their power from renewable sources like wind and solar by 2020.

Pelosi called the bill "a historic opportunity" and "a shot heard around the world for energy independence," with crude oil prices near $90 a barrel and retail gasoline over $3 a gallon.

Democrats claimed the higher vehicle fuel efficiency standard would eventually reduce US oil demand by 1.1 million barrels a day and save families between $700 and $1,000 in yearly fuel costs.

NO ENERGY BILL
Republicans called it a "no energy bill" because it doesn't open new US acreage to oil and natural gas drilling. They said the bill will do nothing to curb soaring prices for gasoline and home heating fuels.

"The Democratic majority's remarkably undemocratic process has produced a bill that harms more than it helps and has no chance of being signed into law," said Rep. Joe Barton, the top Republican on the Energy and Commerce Committee.

The House bill also contains popular provisions to boost use of renewable fuels like ethanol to 36 billion gallons by 2022. Ethanol, blended mostly from corn in the United States, is popular in Midwest states like Iowa.

But to allay anger from livestock growers and food makers, who have seen corn prices nearly double amid an ethanol boom, the bill caps the amount of corn-blended ethanol at 15 billion gallons. The rest -- 21 billion gallons -- comes from nonfood "cellulosic" sources like switchgrass and wood chips by 2022.

The bill's tax provision -- worth about $21.5 billion over 10 years -- would dangle federal tax incentives for homeowners and businesses to buy new solar arrays, wind turbines and hybrid gas-electric cars.

To foot most of the bill, the House bill repeals about $13 billion in tax subsidies extended to big oil and gas producers like Exxon Mobil Corp, ConocoPhillips and Chevron Corp.
The American Petroleum Institute slammed the House bill, saying it "over-promises" the ability of ethanol to cut oil demand and will likely raise the cost of gasoline.

The Sierra Club said the bill was a dramatic move away from the failed energy policies of the past and "will provide billions for clean energy instead of Big Oil's bottom line."

(Additional reporting by Tom Doggett; editing by Marguerita Choy)
Story by Chris Baltimore
REUTERS NEWS SERVICE
http://www.planetark.com/dailynewsstory.cfm/newsid/45832/story.htm

-------------------------


Telegraph-Journal | David Shipley | December 5, 2007
Energy cost a factor in mill's closure
The ability to produce electricity helped spare the two Atlantic Canadian sister facilities of the doomed Dalhousie newsprint mill.
AbitibiBowater Inc.'s Grand Falls, N.L. mill has hydroelectric power while its Liverpool, N.S. mill has a cogeneration plant.

"Certainly we do have some inherent advantages on the energy side in some of the other Atlantic provinces," said Seth Kursman, vice-president of corporate communications for AbitibiBowater.
"The energy cost at Dalhousie was quite high and that is one factor that contributed to the economic situation of the mill," he said Tuesday.

The 78-year-old Dalhousie mill in northern New Brunswick relied on NB Power for 110 megawatts of its electricity.

But Kursman stressed the cost of energy was one of many factors, including aging of the facility, tumbling demand, transportation and wood availability, that led to the closure decision.
"Was it factor, yes, was it the only factor, no."

The Dalhousie mill is slated to close next month.
Kursman said AbitibiBowater turned down a proposal by Premier Shawn Graham for cogeneration at Dalhousie.

"We just couldn't see making a change like that," said Kursman.
Cogeneration is the process of burning forest waste products, such as branches and leaves, to create steam that can be used in the manufacturing process or in the generation of electricity.
A cogeneration facility on its own would not have saved the mill, Kursman added.

But while energy aid alone wouldn't have saved Dalhousie, electricity cost relief may save others, said Mark Arsenault, president of the New Brunswick Forest Products Association.
"Electricity is by far the most significant increase and out of control cost that our large mills are having to deal with," he said.

Electricity accounts for roughly one-third of a paper or pulp mill's costs, he said.

A provincial property tax relief program introduced in July that was designed to ease the impact of NB Power's proposed electricity rate increase, was a good step towards helping the industry, said Arsenault "(But) the current increases that are being proposed are far outpacing the assistance that is coming forward (from the province)," said Arsenault.

Arsenault has urged the province to table its biomass strategy to help mills in the province decide whether or not to invest in cogeneration.

But cogeneration is a long-term solution to a problem that's plaguing mills across the province right now.
To ease the electric pain, Arsenault said the province must do more in the short-term.

"Look under normal circumstances you would hope everyone would be able to absorb the cost increase and grow, but we are in a particularly tight crisis situation," he said.

"I've got 16 sawmills out of 61 that are operating at full capacity."

"We are in the worst state we've been in and right now it doesn't look like things are getting better."

David Plante, vice-president of the New Brunswick division of the Canadian Manufacturers & Exporters, said Tuesday large industrial users in the province have had to deal with a more than 20 per cent increase in energy costs in the last 24 months.

The provincial government must help large industrial users who help provide a significant portion of NB Power's base load electricity demand.

The manufactures association has put a motion to the Energy and Utilities Board asking for the provincial regulator to hold a cost allocation study after the current hearings into NB Power's 6.4 per cent average rate increase.

As it stands, large industrial users are facing a 7.4 per cent rate increase.

"The existing formula is from 1991-1992 and it's way out of date," said Plante.

"If they use the existing revenue to cost ratios, the EUB could even recommend that large industrial rates get driven up even higher," said Plante.

Such a move would be devastating for forestry firms and other manufacturers.

"That would certainly be another nail in the coffin."
http://telegraphjournal.canadaeast.com/search/article/146958

URGENT for Peter, Ergodoc and EC


http://www.hazmatmag.com/videos/play/?plid=1000359174


Unfortunately, I was not able to get a transcript -- but here is the video.

22:11 (minutes and seconds)

Features AbtibiBowater and Walker Industries (Thorold Plant -- recycling newsprint and paper).

While this plant may currently have layoffs , shutdowns etc. for other reasons -- the vidoe references all that is needed for Cap & Trade and the Environment.

Please watch the entire video.

ABWTQ -- starts at about 6:45 in (Bio Gas and Recycling).

Cap & Trade and Carbon Credits -- 14:15 -- lists in the written format.

Bio-Mass -- Future according to Sustainable Development Canada -- references Forestry SECTOR -- 18:00 mark.

-----------------

The vieo does not specifically address the value of timber -- but with all of the things I have posted you should have enough to go on in that regard.

----------------------

As far as the Newfoundland Issue -- I think that is pretty much irrelevant now, other than the value to s/hers of the NAFTA fight.

In short, Stephenville et al shut down, because their production was no longer needed (inefficient, outdated etc., relative to a globalized marketplace and othe rABWTQ plants that could complete the same.

Eamiljanum - Reply

Special Note: Keep an eye out for something that specifically addresses Emission Credits and Cap & Trade and Bio Mass and Abitibi-Bowater (from summer 2009). I am trying to get a transcript -- but the entire thing proves the case in a nutshell.

Also - I believe that Abitibi-Bowater made a donation of emission credits to someone back in September 2009 -- might of been only 3 million dollars, but that three million dollars or whatever the amount could have been used to paying off more debt.

------------------------

Below is about the only "Press Related -- Article" that I found that sort of tackles all of the Newfoundland issues. I want press related -- because it is there in writing.

The Stephenville Plant was closed previously (but not sold - I think), so I am trying to locate the Forest Acreage on that property too. I may have to go back to 2005 for that, though -- it will take some time.

4 million acres on this location only, according to the article below.

-----------------------

Economic Crisis: Confronting Industry Shutdowns in Canada
Multinational’s Assets Seized in Newfoundland

by Roger Annis
Global Research, January 14, 2009


A Conservative Party provincial premier has presented an unlikely challenge to trade unions and the New Democratic Party across Canada. No, it's not another assault on workers' rights and living conditions. It's a surprising decision to stand up to a corporate giant.

On December 18, the House of Assembly of the Province of Newfoundland and Labrador unanimously approved a resolution to revoke the access to timber and river water held by paper conglomerate AbitibiBowater in central Newfoundland.

It's the kind of measure that NDP governments in other provinces run away from, fearing big-business backlash and saying it would damage electoral prospects. But Premier Danny Williams' move has received near-universal acclamation in his home province and has been welcomed by working people across Canada and into the United States, especially those in hard-hit, resource-based communities.
Writing for the Quebec monthly journal and website L'Aut'Journal, editor Pierre Dubuc says the Newfoundland government decision "sends a message that workers can demand of their governments measures other than habitual compliance."

He contrasts the Newfoundland decision with reaction by the Quebec government to a recent paper mill closing by Abitibi in Donnacona, Quebec that cost 250 jobs. There, the Quebec government shrugged its shoulders and said there was nothing it could do to save jobs.

Paper Mill Closure

The Newfoundland government's move followed an announcement by AbitibiBowater that it would close its giant paper mill in Grand Falls-Windsor in March 2009. The mill and related forest and hydro-electric operations employ some 900 workers.
As of the mill closing, the government will end the company's access to timber on some four million acres of land and to river-water resources used in electrical generation. The government will expropriate hydro-electric installations run by the company. The mill itself will remain in company hands.

The government will pay the company for its seized assets at a price to be negotiated. Environmental clean-up costs and severance pay for workers will be factored into any final price.
In a feature interview on CBC Radio's The Current on December 22, Williams explained his government's decision. "We need to make sure that we properly safeguard our natural resources, and that we enter into proper corporate arrangements with our business partners. I'm the first one to say that businesses should earn a profit, and make a handsome profit if they're able to run their businesses effectively.

"But don't take, take, take from Canadians, not reinvest, suddenly close down operations, and think you'll walk away with the goodies."

AbitibiBowater says it will challenge the government's moves under the terms of the North American Free Trade Agreement, arguing that a nearly 100-year-old agreement allows it to do whatever it wants with timber and water resources, including selling its access to others. Williams says Abitibi should tread carefully because its financial relationship with provincial and federal governments in Canada would come under scrutiny during such a challenge and are probably in violation of the treaty because of the extensive subsidies that paper companies receive in Canada.

The Globe and Mail national daily published a harsh critique of Williams on the front page of its December 17 edition. Columnist Konrad Yakabuski wrote, "At least Hugo Chavez, Venezuela’s nationalization-happy president, has the decency to call himself a socialist. Mr. Williams just acts like one."

Popular Pressure to Act

When Abitibi announced closure of the paper mill, the government came under considerable public pressure to act because the closing was widely viewed as motivated solely by greed and malice. Abitibi served notice earlier in 2008 that it wanted to cut 170 jobs by reducing production and contracting out certain operations. To add insult to injury, it offered no guarantee to workers that the mill would remain open.

The workers, members of the Communications, Energy and Paperworkers Union (CEP) voted in September and again in November to refuse the necessary changes in collective agreements to allow the job cuts.

In a letter to the St. John's Telegram on December 9, the president of CEP Local 63, George MacDonald, explained, "We were prepared to make this mill operate, and we were prepared to discuss anything to make that happen. We brought issues to the local management and were ignored. Do you really believe that we would be so stupid as to vote against saving our jobs and saving this industry, if we were offered a choice?"

He said the union was willing to discuss wage concessions, but the company never asked for any.

MacDonald's letter continued, "The people of Newfoundland and Labrador need to ensure that if AbitibiBowater is not operating here, it leaves empty-handed.... Our resources cannot be used to benefit an organization that does not continue to invest in our province’s industry and economy."

Williams echoed the workers' complaints when he told The Current, "The mill itself has been allowed to deteriorate dramatically even though the government was willing to put money into modernizing it."

'Tired of the Giveaways'

Danny Williams said recently that he got involved in politics because he was "tired of the giveaways" of the province's natural resources. He's not alone. Decades of squandering of natural resources made Newfoundland and Labrador the poorest province in Canada ever since it joined the country in 1949. A deep-seated, popular anger against the "giveaways" is omnipresent in the province.

The waters surrounding Newfoundland were once the richest fishery in the world. Not anymore. Fish stocks have been obliterated by decades of plundering by Canadian and foreign fishing fleets.
In 1992, the Canadian government, which has responsibility for managing the country's ocean waters, was obliged to declare a moratorium on the fishing of cod, the most lucrative of the species.

Thirty-five thousand people were thrown out of work, the largest layoff in Canadian history. The cod have never recovered.
Another resource bungle is the massive hydro-electric installations along the Upper Churchill River in Labrador, built during the 1960s. The Newfoundland government receives very low royalties for the electricity. It signed onto low, long-term royalties with the government-owned electric giant in the neighbouring province of Quebec in exchange for financing of the construction.

Hydro-Québec makes a fortune off the electricity, much of which is sold in the U.S. The laughably low prices that Newfoundland receives are in place until the year 2041. The government estimates that the province is losing out on $1 billion per year, based on current electricity prices and royalty rates prevailing in other jurisdictions.

The conflict with Abitibi is not Williams' first conflict with foreign corporations. In 2006, he ended talks with several of the world's major oil companies over exploitation of the large, offshore oil field known as Hebron. The field holds an estimated 581 million barrels of recoverable oil. An oil consortium headed by Chevron balked at Williams' demand for a five-percent government ownership stake in the project. Williams was pilloried in the business press and by federal politicians.

The hardnosed strategy paid off. The government and oil majors reached a deal in August of this year on the government's terms.
At odds with Ottawa, too Williams has also clashed with the Canadian government, over "equalization" payments that flow to the governments of poorer provinces via federal government coffers and over-management of offshore oil.

Equalization payments are intended to support a common standard of public services across Canada. The federal government wants to reduce payments to Newfoundland as the new-found oil wealth in the province comes onto stream.

It also wants a significant share in oil revenue. Unlike Canada's other oil-producing provinces, Newfoundland's oil lies under the sea, a federal government jurisdiction. The provinces of Newfoundland and Nova Scotia claim that the Conservative Party government of Prime Minister Stephen Harper reneged on a deal reached under a previous federal government in 2005 for sharing of oil revenue between the two levels of government.
During the 2008 federal election, Williams urged voters in Newfoundland to vote for "anyone but" the incumbent Conservatives -- his own party, no less. The Conservatives were wiped off the electoral map as a result, winning only 16 percent of the popular vote in the province. (In Nova Scotia, by contrast, the party's seat standing remained unchanged.)

Whose Interests to Prevail?

Danny Williams insists that he is devoted to business and corporate interests. He does not challenge the decision of Abitibi to close its paper mill in Grand Falls-Windsor. "We understand there are downturns in the paper industry that affect company operations," he told the CBC.

Nor does he challenge Abitibi's retaliatory measure in shutting down part of its timber cutting operations following the government's revocation announcement.

When asked by CBC why Abitibi is closing the paper mill, Williams' answer was a coy defense of the company's right to do whatever it wishes with the mill. George MacDonald of the CEP, on the other hand, explained the closure as motivated by Abitibi's desire to make money by selling electricity from generating facilities that previously served the mill. "There is more money in selling than in paper making," he bluntly told CBC's The Current on December 18.

Williams' concern is that local business interests receive a larger piece of the pie when multinationals set up shop. In Abitibi's case, its use and abuse of the paper mill was all "shaft" and no "sharing" of the proceeds.

Williams contrasts his government's relations with Abitibi to those with the oil industry. He says his government has a "great relationship" with the oil companies.

Implications for Workers Across the Country

Abitibi's motivations are a familiar story to forestry and mining workers across Canada. In the mining towns of Trail and Kitimat, British Columbia, for example, workers have fought company efforts to shut down lead/zinc and aluminum smelting operations while leaving electrical generation stations in operation to earn fantastic profits.

In the forest industry, workers complain loudly about many lumber companies' growing preference to close sawmilling and manufacturing operations while continuing to cut timber for export abroad.

But concerns have rarely gone beyond the complaint stage. Few voices suggest that government ownership and management of natural resource industries, that is, nationalization, is required. That may change as a result of the recent move in Newfoundland. We will also see a rougher ride for claims by political leaders that trade deals such as the North American Free Trade Agreement (NAFTA) are written in stone and cannot be challenged.

Canada's business elite are concerned about the rumblings of discontent in the forestry that came to a head in Newfoundland. Forestry is the largest industry by employment in the country. The Globe and Mail editorialized December 27, "Canadians need to accept that the days in which forestry acted as a kind of social program for remote communities ... have disappeared. That outdated attitude found its latest expression most recently in Newfoundland and Labrador, with Premier Danny Williams' expropriation of land and other assets from AititibiBowater Inc...."

Williams' move against Abitibi adds interest to the upcoming election in British Columbia in May of this year. The New Democratic Party has a good shot at winning. But party leader Carole James is spending much of her pre-election time in soothing business fears.

In a year-end interview with the rabidly anti-NDP Vancouver Sun, she said, "People know that I ran (for leadership of the NDP) because of my balanced approach, because of the importance of making sure that business and labour are at the table."

The last elected NDP premier in BC, Glen Clark, resigned from office in 1999 in the face of a vitriolic, media-driven campaign that penetrated the ranks of his own party. Clark was considered anti-business and too cozy with trade unions. He resigned in the face of a police investigation into accusations of small-scale, personal business improprieties on his part. The accusations were later proven entirely without merit.

James has loosened the ties of affiliation of trade unions to the party. She is an enthusiastic preacher of "fiscal responsibility" and "balanced budgets" dogma that serves as justification for inaction on declining living standards happening among the poorest sections of the population.

Supporters of her party in the labour movement will logically expect her to be at least as firm with the resource corporations that pillage this province as the Newfoundland government has been with Abitibi. They may even demand that she assert public control and ownership over what are, after all, eminently public natural resources. That would be the best way that working people could benefit from the unexpected example provided by Danny Williams. •

Roger Annis is a trade union activist and co-editor of Socialist Voice. He can be reached at: rogerannis@hotmail.com.

Roger Annis is a frequent contributor to Global Research. Global Research Articles by Roger Annis

China's Pollution Announcement


Following China's Pollution Announcement thiss past week re: closures or reductions in "inefficient capacity", thefollowing data was obtained:


Only about a dozen factories are listed for full closure, including a pair of paper plants in Hebei, five printing-and-dyeing operations in Guangdong, and a trio of liquor factories in Sichuan.

For Peter and EC - valuation

ABWTQ and Brookfield have timber assets

Attached is a link to tonight's Brookfield Asset Management - Form 6K

http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=7105230


The following is only an excerpt and may be useful in pointing out that there is more than one way to value timber


22 BROOKFIELD ASSET MANAGEMENT
________________________________________
Infrastructure
Summarized Financial Results
The following table summarizes the capital we have invested in our infrastructure operations as well as our share of the operating cash flows:

Chart data is messy -- but you will know the area to find it.

Assets Under Management Net Invested Capital Net Operating Cash Flow
AS AT AND FOR THE THREE MONTHS ENDED (MILLIONS) June 30, 2010 Dec. 31, 2009 June 30, 2010 Dec. 31, 2009 June 30, 2010 June 30, 2009
Utilities $ 7,648 $ 7,626 $ 443 $ 537 $ 18 $ 13
Fee-for-services 3,278 3,498 196 196 11 —
Timber 4,335 4,264 846 813 12 3


Net asset value
The historical book value of our development assets after deducting borrowings and minority interests was $1.1 billion as at June 30, 2010, equal to our invested capital.

The valuation of residential development assets and residential lots within the Development Land segment are considered inventory for these purposes, and are recorded at the lower of the existing carrying value and their expected net realizable value. Net realizable value is determined as the value at the anticipated time of sale less costs to complete.

Many of our land holdings were acquired many years ago and we believe the net asset value of these lands exceeds the carrying values for IFRS purposes. Accordingly, we reflect this excess value as “unrecognized value under IFRS” in determining the net asset value of our shareholders’ equity.

Valuation Methodology

Use of Management and Third Party Appraisals
Our tangible assets are generally held in public and private operating subsidiaries and various listed and unlisted funds. Assets held in funds often require annual revaluation based on third party appraisal. In these cases, we utilize the appraised third party values and assumptions as the basis of our IFRS carrying values with adjustments in accordance with IFRS rules, if necessary. Assets not otherwise valued for fund requirements are valued by management, and also valued by third party appraisers on a rotating basis so that each asset is revalued externally at least once every three years. A summary of our revaluation methodology is provided below:
Renewable Power: Revalued annually by management and on a rotating basis at least once every three years by third party appraisers and more frequently if required for refinancing activity.

Commercial Properties: Revalued quarterly by management and on a rotating basis by third party appraisers at least once every three years and more frequently if required for fund reporting or refinancing activity.

Timberlands: Our timberlands in Western North America and Brazil are held in funds which require annual third party appraisals. Timberlands held in Eastern North America are revalued using management estimates. All quarterly revaluations are prepared using management estimates.

ABWTQ - Because of the Dynegy Deal

All of these legal firms are coming out of the woods, ready to do things on a percentage of the rewards basis. Class Action may very well be the way to go.

There are so many long-term mutual funds and pension funds in Dyengy that these firms could go after ABWTQ Management in the same way, on behalf of all of those funds that sold after the merger, but were in the stock prior to the merger.

------------------------


The Briscoe Law Firm, PLLC and Powers Taylor, LLP Announce the Investigation of Possible Breaches of Fiduciary Duties Concerning the Acquisition of Dynegy, Inc.

Press Release Source: Powers Taylor, LLP On Friday August 13, 2010, 1:10 pm

DALLAS--(BUSINESS WIRE)--The Briscoe Law Firm, PLLC, founded by a former state prosecutor and enforcement attorney for the United States Securities and Exchange Commission, and the law firm of Powers Taylor, LLP are investigating potential legal claims against the Board of Directors of Dynegy, Inc. (“DYN” or “Company”) (NYSE: DYN - News) related to the proposed acquisition of DYN by the Blackstone Group.

The agreement involves a cash transaction valued at approximately $4.7 billion, under which the Company shareholders will receive $4.50 in cash for each share of DYN common stock they hold. The investigation relates to possible breaches of fiduciary duty and other violations of state law by the Board of Directors of DYN for approving this transaction, whether the consideration to be received by DYN shareholders is fair, and whether DYN’s board of Directors acted in the shareholders’ best interests.

If you currently own shares of DYN and would like additional information regarding this investigation, or if you have information regarding the allegations involving this transaction, please contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at patrick@powerstaylor.com, or The Briscoe Law Firm, PLLC toll free (877) 397-5991, or via email at WBriscoe@TheBriscoeLawFirm.com. There is no cost or fee to you.

The Briscoe Law Firm is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex litigation and transactional matters.

Powers Taylor, LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.


Contact:
The Briscoe Law Firm, PLLCWillie C. Briscoe, 214-706-9314
214-706-9315 FacsimileWBriscoe@TheBriscoeLawFirm.comorPowers Taylor, LLPPatrick W. Powers, 214-239-8900
214-550-2635 Facsimile

Can you do that for us BidMark?


Better still, why don't you phone Paterson or the Trustee or Harvey and ask them directly.

Deloitte, as their advisor says yes.

----------------

Canadian forest industry and environmental groups sign world's largest conservation agreement applying to area twice the size of Germany

TORONTO and MONTREAL, May 18 /CNW Telbec/ - Today 21 member companies of the Forest Products Association of Canada (FPAC), and nine leading environmental organizations, unveiled an unprecedented agreement - the Canadian Boreal Forest Agreement - that applies to 72 million hectares of public forests licensed to FPAC members. The Agreement, when fully implemented, will conserve significant areas of Canada's vast Boreal Forest, protect threatened woodland caribou and provide a competitive market edge for participating companies.

Under the Agreement FPAC members, who manage two-thirds of all certified forest land in Canada, commit to the highest environmental standards of forest management within an area twice the size of Germany. Conservation groups commit to global recognition and support for FPAC member efforts. The Agreement calls for the suspension of new logging on nearly 29 million hectares of Boreal Forest to develop conservation plans for endangered caribou, while maintaining essential fiber supplies for uninterrupted mill operations. "Do Not Buy" campaigns by Canopy, ForestEthics and Greenpeace will be suspended while the Agreement is being implemented.

"The importance of this Agreement cannot be overstated," said Avrim Lazar, President and CEO of FPAC. "FPAC member companies and their ENGO counterparts have turned the old paradigm on its head. Together we have identified a more intelligent, productive way to manage economic and environmental challenges in the Boreal that will reassure global buyers of our products' sustainability. It's gratifying to see nearly a decade of industry transformation and hard work greening our operations, is culminating in a process that will set a forestry standard that will be the envy of the world."

Environmental groups, including the three organizations that have been mobilizing large customers towards green products, say the coming together of two traditional adversaries reflects a new commitment to a common goal.

"This is our best chance to save woodland caribou, permanently protect vast areas of the Boreal Forest and put in place sustainable forestry practices," said Richard Brooks, spokesperson for participating environmental organizations and Forest Campaign Coordinator of Greenpeace Canada. "Concerns from the public and the marketplace about wilderness conservation and species loss have been critical drivers in arriving at this agreement. We have a lot of work to do together to make this agreement successful and we are committed to make it happen."

Also vital to the agreement have been the efforts of the Pew Environment Group and Ivey Foundation, which worked to support the two sides coming together and to facilitate the negotiations.

"For years we have helped bring opposing parties together to conserve this global treasure, Canada's boreal forest," said Steve Kallick, director of the Pew Environment Group's International Boreal Conservation Campaign. "We're thrilled that this effort has led to the largest commercial forest conservation plan in history, which could not have happened without both sides looking beyond their differences. As important as today's announcement is, our ultimate success will be measured by how we tackle the work ahead to put this plan into practice."

The Agreement identifies explicit commitments for both sides and sets out a plan, which includes:


- The development and implementation of world-leading forest management
and harvesting practices;

- The completion of joint proposals for networks of protected areas and
the recovery of species at risk including woodland caribou;

- A full life cycle approach to forest carbon management; and

- Support for the economic future of forest communities and for the
recognition of conservation achievements in the global marketplace.

Signatory environmental organizations, FPAC, and the Association's companies have begun meetings with provincial governments, First Nations and local communities across the country to seek their leadership and full participation in advancing the goals of the Agreement. Participants recognize that governments, including First Nation governments, are decision makers within their jurisdictions. The Agreement recognizes that aboriginal peoples have constitutionally protected aboriginal and treaty rights that must be respected and engaged in order for the Agreement to fulfill its objectives.

The progress made to reach the objectives laid out in the Canadian Boreal Forest Agreement will be regularly measured and reported on by a jointly agreed-upon independent auditor.


Forestry Companies Participating in the Agreement:


AbitibiBowater, Alberta Pacific Forest Industries, AV Group, Canfor, Cariboo Pulp & Paper Company, Cascades Inc., DMI, F.F. Soucy, Inc., Howe Sound Pulp and Paper, Kruger Inc., LP Canada, Mercer International, Mill & Timber Products Ltd, NewPage Port Hawkesbury Ltd, Papier Masson Ltée, SFK Pulp, Tembec Inc., Tolko Industries, West Fraser Timber Co. Ltd, Weyerhaeuser Company Limited - all represented by the Forest Products Association of Canada.


Environmental Organizations Participating in the Agreement:


Canadian Boreal Initiative, Canadian Parks and Wilderness Society, Canopy (formerly Markets Initiative), the David Suzuki Foundation, ForestEthics, Greenpeace, Ivey Foundation, The Nature Conservancy, and the Pew Environment Group's International Boreal Conservation Campaign. The Hewlett Foundation's support for boreal forest conservation has been critical to the collective efforts of these groups.



For further information: CONTACT: Forest Products Association of Canada: Monica Bailey, Manager, Communications: (613) 563-1441 xt 323; Canadian Boreal Initiative: Suzanne Fraser, Director of Communications: (613) 552-7277; Canopy: Nicole Rycroft, Executive Director: (778) 987-9099; CPAWS: Ellen Adelberg, Director of Communications and Marketing: (613) 292-2875; David Suzuki Foundation: Jode Roberts, Communications Specialist: (647) 456-9752; ForestEthics: Todd Paglia, Executive Director: (416) 527-2284; Greenpeace: Alex Paterson, Media & Public Relations: (416) 524-8496; The Ivey Foundation: Tim Gray, Program Director: (416) 867-9229; Pew Environment Group: Elyssa Rosen: (775) 224-7497; The Nature Conservancy: Aaron Drew, Media Relations: (720) 425-3930; Location of other media materials: www.CanadianBorealForestAgreement.com

It's official - Parts of ACH for sale


AbitibiBowater has raised the idea of selling off the hydroelectric dams at its pulp and paper mill in Iroquois Falls, Ontario again.

"If this goes through, I expect the Iroquois Falls mill will be going from a low-cost mill to a very high-cost mill," said Mayor Gilles Forget. "There's a predicted decline in newsprint demand over the next three years, so that could potentially put us in a precarious situation.

"Our mill could be on the chopping block."

AbitibiBowater has been able to obtain inexpensive electricity because of the dams allowing the mill to remain competitive.

Mayor Forget had understood that he would be part of any negotiations if the dams were to be sold, because under the water power lease agreement, AbitibiBowater is not permitted to sublet, sell, or transfer any part of the company without government consent.

The mayor now believes the Ontario Ministry of Natural Resources has already given consent for the sale

Tripp Levy PLLC Investigates Buyout of Dynergy

This is really wonderful news for Abitibi Shareholders now.

Reference the Board and Management (now in BK Trustee is really in charge). But for all intents and purposes the Board and Directors and Management pre-BK and in BK are the same.

Paterson has not sold his shares.


Press Release Source: Tripp Levy PLLC On Friday August 13, 2010, 9:24 am

NEW YORK--(BUSINESS WIRE)--Tripp Levy PLLC announces an investigation into the proposed acquisition of Dynergy Inc. (NYSE: DYN - News). On August 13, 2010, it was announced that Dynergy has entered into an agreement pursuant to which it will be acquired by an affiliate of The Blackstone Group L.P. (NYSE:BX - News) in a transaction valued at approximately $4.7 billion, including the assumption of existing debt. Under the terms of the merger agreement, Dynegy stockholders will receive $4.50 in cash for each outstanding share of Dynegy common stock they own.

The investigation concerns, among other things, whether the consideration to be paid to Dynergy shareholders is grossly unfair, inadequate, and substantially below the fair or inherent value of Dynergy. Indeed, analysts have projected that the true inherent value of Dynergy is at least $7 per share. The investigation further concerns whether the directors of Dynergy may have breached their fiduciary duties by not acting in Dynergy shareholders' best interests in connection with the sale process of Dynergy.

If you own Dynergy common stock and you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact

Tripp Levy
Tripp Levy PLLC
125 East 82nd Street
9th Floor
New York, New York
Toll Free: 877-772-3975
Email: contact@tripplevy.com

Tripp Levy PLLC is a national law firm that specializes in mergers & acquisitions, takeover litigation, shareholder rights, and corporate governance matters in state and federal courts throughout the United States

----------------------------

Email -- yes I have read most of that document (compelling evidence).

Truth is -- Danny Williams probably has Abitibi Assets (less Clean-up and Severance costs) of in excess of One Billion Dollars.

If you had someone that could manage the Power Sales, especially to the U.S. in future years -- it would be a cash cow.

-------------------

Note that a lot of that stuff to me is quite dry now. Wrote two thesis essays on U.S. Direct Incvestment in Canada and on the Original Canada-U.S. Free Trade Agreement. in University. Had enough, but imo, we are moving to a globalized economy and likely within 10 or 20 years -- regional currencies) that will ensure that Countries simply do not discount to the U.S. or the Euro in order to gain a competitive advantage over one another just so it suits them.

Also -- we need much fresh water in many parts of the world -- if it is not a desalination plant -- or a melting glacier dropped into Africa -- then we have a major world problem.

Ergodoc and EC - worth a call?


Since you are in the same state, you may wish to call -- Dyngey had lots of naked shorts and CDS against them.

The idea is that the electricity industry is going to be re-structed (coal plants gone -- contract breaking process under BK).

Maybe Blackstone knew that and proposed their own deal.

GM -- break Union Contracts. AbitibiB - break Union Contracts and keep Timberlands for new guys.

-------------------


Press Release Source: Goldfarb Branham LLP On Friday August 13, 2010, 9:08 am

DALLAS--(BUSINESS WIRE)--Goldfarb Branham LLP is investigating the recent buyout of Dynegy (NYSE: DYN - News) for shareholders. Existing Dynegy shareholders will be cashed out by The Blackstone Group for $4.50 in cash. Concerned shareholders should contact securities attorney Hamilton Lindley at 877-583-2855 or hlindley@goldfarbbranham.com.

“Dynegy’s stock has traded at $13.35 in the last 52 week period,” Hamilton Lindley said. “In fact, it reached its yearly low the day this buyout was announced, allowing The Blackstone Group to appear to be paying a large premium for the company. Our proposed class action lawsuit seeks better value for the company as well as more information about this transaction disclosed to Dynegy shareholders.”

Goldfarb Branham LLP lawyers have significant experience representing shareholders in unfair buyouts nationwide. The Texas securities firm provides nimble, creative and effective counsel at all stages of litigation. If you have information or concerns about this transaction, contact attorney Hamilton Lindley at the contact numbers listed below.


Contact:
Goldfarb Branham LLPHamilton Lindley, 214-583-2233Toll Free: 877-583-2855Fax: 214-583-2234hlindley@goldfarbbranham.com

Is Blackstone Coming for us next?


Is there a big deal with Tembec too -- love the quote from a newby yesterday -- Gov'ts get in the way.

Look at Dynegy -- Wazata involved -- same guys as with Tembec -- applied with the regulator to buy more Tembec.

Abitibi's timberlands worth billions and Billions under Cap & trade.

Electricity Rates are likely to go up under C&T, which will also benefit Abitibi's generation assets.

No Mercy-It's now or never for a Buyout?

Add the China Floods and the devastation there -- lumber going to sky-rocket -- China will need to let the Yuan rise in order to keep inflation in check.

No more need for exports -- China will need imports (and very badly). Back end of Pulp curve going to rise again, as China factories come back on line. Inventories in Europe at record lows.

-------------------------------



Pakistan floods are worst in living memory...and it's still raining

TORONTO, Aug. 12 /CNW/ - The magnitude of the crisis in Pakistan is widening daily. Already, one-fifth of the country has been submerged by the country's worst floods in living memory, which have wiped out homes, farms and villages, and brought devastation to millions of families and children.

According to UN estimates yesterday, 14 million people have been affected by the floods. This is more people than the Tsunami, the Kashmir earthquake and the Haiti earthquake combined.

"This is a disaster on a massive scale and millions of families and children have lost everything" said Rosemary McCarney, President and CEO of Plan Canada.

Where the waters have receded, homes, farms, clinics, schools and entire communities are gone. Families are being split as men escort their families to camps and safe places and then go back to salvage whatever they can from their homes.

"It's extremely dangerous and obviously distressing for all," said McCarney. "Those who have survived face grave conditions, but we can reach them with the essentials to help them get through this crisis."

Far East/Ergodocs might be selling

-------------------

If the above is true (selling ACH Partnership assets), then Management pays off with proceeds -- DIP and securitization), then uses the rest as a barg. chip.

To my knowledge ACH was not a debtor.

ACH Limited Partner. - Sell?

Is Abitibi-Bowater going to sell the remaining stake in the ACH Limited Partnership?

In the Original Declaration, KPMG disclosed that it KPMG is the United States member firm of KPMG International Cooperative, a Swiss firm.

KPMG also disclosed that the Canadian member firm of KPMG International (“KPMG Canada”) provides services to certain Debtors and/or Canadian affiliates of the Debtors, consisting of auditing the financial statements of pension funds and plans, and loaning professional accounting staff, as an ordinary course professional. KPMG further disclosed that to the extent KPMG became aware of an engagement by another member firm, KPMG would file a supplemental declaration with the Court.

On or about August 2, 2010, KPMG Canada submitted a declaration
stating that it had been engaged by a consortium of potential acquirers of ACH Limited Partnership, a non-debtor affiliate of the Debtors.

I believe that the engagement by KPMG Canada does not give rise to a finding that KPMG represents or holds interests adverse to the estates with respect to the ordinary course services for which KPMG has been retained. Accordingly, I believe KPMG remains a “disinterested person” within the meaning of section 101(14) of title 11 of the United States Code.

Pursuant to 28 U.S.C. § 1746, I declare under penalty of perjury that the foregoing is true and correct.

---------------------

Background Notes 1.

ABITIBIBOWATER ANNOUNCES SIGNING OF PROPOSAL FOR SALE OF ONTARIO HYDRO ASSETS AND REAFFIRMS EXPECTATION OF SUBSTANTIAL IMPROVEMENT IN FOURTH QUARTER FINANCIAL RESULTS

MONTREAL, Dec 22, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- ABH (NYSE, TSX) US $

AbitibiBowater Inc. today announced it has accepted a proposal for the sale of its equity interest in ACH Limited Partnership to a major industrial energy producer. ACH Limited Partnership was established to hold hydro-electric generating assets in Ontario, Canada by the Company's Abitibi-Consolidated Company of Canada subsidiary in April 2007. The Company owns a 75 percent equity interest in ACH Limited Partnership.

The proposal values the hydro assets, which have a combined capacity of 136.8 MW, at C$540 million. The resulting gross proceeds (excluding expenses) for AbitibiBowater would be C$197.5 million. As part of the transaction, the buyer would also assume C$250 million of ACH Limited Partnership's term debt.

"The signing of this proposal marks continued progress with our de-leveraging initiatives," stated David J. Paterson, President and Chief Executive Officer of AbitibiBowater. "We look forward to continued de-leveraging progress as we implement additional measures to improve our free cash flow generation."

The non-binding proposal for the sale of the hydro-electric generating assets in Ontario is subject to due diligence, among other terms and conditions. While AbitibiBowater expects that a definitive agreement will be reached in the first quarter of 2009, no assurances can be provided as to when or if a definitive agreement will be executed.

The proposal does not include the sale of the Iroquois Falls or Fort Frances, Ontario mills. AbitibiBowater is pleased with the efforts both mills have made since the merger in lowering their costs. The mills remain competitive and the Company continues to look for investment opportunities to ensure that they remain competitive. AbitibiBowater is committed to keeping workers and local communities informed about the sale of ACH Limited Partnership as the process advances.

Background Notes 2:

http://www.abitibibowater.com/installation_site.aspx?siteid=45&comingfrom=4720&id=4334&type=2

China - Demand from Floods (8-9-10)


From another company's earnings report today.


was not overly affected by the tightening measures, as our operations are focused on emerging markets within China and as the country's large wood fibre deficit continues to grow. Further, the areas in and around Yunnan continue to show strong growth and demand for fibre as demonstrated by our sales in this region in the first half of 2010."


Mr. Chan added, "Despite the heavy rainfall in the second quarter of 2010 which caused severe flooding in many provinces across China, our operations were not significantly affected and we anticipate that there will be a short-term fibre shortage in the country's wood markets. Currently, log prices are about 5% below their highs in 2008, and we anticipate that these prices will continue to rebound given solid demand and the short-term impact from flooding.

------------------------

To the EC -- I am all out of bullets -- you will either decide to use the information that I have posted to re-inforce your case or you won't.

One other suggestion is to contact Contrarian and Aureilius and share much of our information , which will certainly assist them in getting the judge to listen.

In turn, I believe that our request of asking for a Forensic Accountant to investigate all accounting records will become more of a reality than it is today.

Best wishes.

Peter and EC (Timberland Valuation)

Make sure you guys reprint this news release and give to the lawyer.


Wednesday, October 31, 2007
Temple-Inland sells $2.38B worth of timberland
Austin Business Journal

Temple-Inland Inc.

Austin's Temple-Inland Inc. has completed a $2.38 billion sale of 1.5 million acres of timberland to an investment entity affiliated with Portland, Oreg.-based The Campbell Group LLC.

The sale is part of a February announcement from the maker of corrugated packaging and lumber products [NYSE: TIN] that it will separate three of its divisions into separate public companies and sell off its timberland business.

The bulk of the sale was made in notes due in 2027. Temple-Inland says in early December, it will pledge the notes as collateral for a non-recourse loan. Loan proceeds, after costs associated with the timberland sale, are anticipated to be about $1.8 billion.

Goldman Sachs & Co., and Citigroup Global Markets Inc. served as financial advisers and Sutherland Asbill & Brennan LLP served as legal adviser to Temple-Inland in connection with the transaction.

For Peter and EC - Part 2 of 2

Western Climate Initiative -- Very Clear (August 2010 in light of July 23, 2010 Agreement on Cap & Trade).


http://www.mcmillan.ca/Upload/Publication/WesternClimateInitiative_0808.pdf


http://www.newswire.ca/en/releases/archive/May2010/18/c4689.html

Click on Skip Willis : a Greenfield of Opportunities -- Re; May 18, 2010 Announcement above

http://www.deloitte.com/ca/pulp-paper-conference

Skip Willis and Other's on U of T Program on Cap & Trade -- Cost is $2,200 for a Diploma after a take-home exam. Look at all those people speaking and their backgrounds.


http://learn.environment.utoronto.ca/carbon-finance/workshops/toronto-fall-2010/toronto-program.aspx


http://www.carbon-financeonline.com/index.cfm?section=carbon_prices

http://www.zeroyourcarbon.com.au/info/carbon_credits/77/1

http://www.carbonpositive.net/viewarticle.aspx?articleID=2047


------------------------------

Lumber Charts are starting to look like we might be due for a run.

Pulp Futures --- back-end months are coming up in a backwardated market = bullish.

Floods = China, Pakistan, India. China building looks like its going to explode. 2 million homes and businesses across 28 states need re-building -- need lumber.

For Peter and the rest on EC

1 of 2

The new IFRS accounting rules are very clear as far as the Timberland Assets -- they should now be MARKED UP not DOWN to show a value equal to (at the very least a NETBACK of the Current Market Value of International Carbon Credits (various Markets so a Complete Analysis will need to be done by a Forensic Accountant.

I think that is where you should take the appeal -- you cannot trust Management -- and here is why. Their advisor is saying EQUITY, MANAGEMENT says NO -- who is right.

imo, other Mark-ups values should be reflected in the Timberlands as well -- NON-renewable resource (China imports of Canadian Timber to grow at 8% per year, as stated by many Canadian Forestry Companies during the Q2 and Pre-Q2 Earnings Announcements.

I have received an opinion from another CA regarding the Abitibi-Bowater Timberlands and the new IFRS rules.

Let's just say that Deloitte could very well be on the verge of breaking some major accounting rules, here. Maybe that why the hired someone from KPMG (an independent view).

Recall all of the Deloitte information (on Deloitte letterhead),as well as Skip Willis' advice to the Canadian Forestry Sector (vis-avis May 18, 2010 Press Release).

Skip Willis as a Senior Advisor on Climate Change and Carbon Credits for Deloitte.

http://www.ifrsaccounting.com/ifrslonglivedassets.html


http://www.bdo.ca/library/publications/assuranceandaccounting/documents/CDNGAAP-IFRSComparisonSeries-Issue2.pdf


http://www.deloitte.com/assets/Dcom-Canada/Local%20Assets/Documents/Climate%20change/ca_en_sustain_carbonchallenge_120309.pdf

http://www.iasplus.com/dttpubs/1002capandtrade.pdf

Similarities on Bonds at Par


Last Updated: 8/4/2010

Corporate Bond Search Results
Wednesday, August 04, 2010






Ratings Last Sale
Include in
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Issuer Name
Coupon
Maturity
Callable
Moody's
S&P
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Price
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BOW.GB BOWATER INCORPORATED
9.00 08/01/2009 No NR NR C 100.000 -


ABY.GB ABITIBI CONSOLIDATED INCORPORATED
7.88 08/01/2009 Yes NR NR C 99.882 -


BOW.GK BOWATER INCORPORATED
4.32 03/15/2010 Yes NR NR C 100.000 -


ABY.GO ABITIBI CONSOLIDATED COMPANY OF CANADA
4.82 06/15/2011 Yes NR NR C - -


ABY.GN ABITIBI CONSOLIDATED COMPANY OF CANADA
7.75 06/15/2011 Yes NR NR C - -


BOW.GA BOWATER CANADA FINANCE CORPORATION
7.95 11/15/2011 Yes NR NR C - -


BOW.GD BOWATER INCORPORATED
9.50 10/15/2012 No NR NR C 99.636 -


BOW.GJ BOWATER INCORPORATED
6.50 06/15/2013 Yes NR NR C - -


ABY.GK ABITIBI CONSOLIDATED COMPANY OF CANADA
6.00 06/20/2013 Yes NR NR C 99.259 -


ABY.GP ABITIBI CONSOLIDATED COMPANY OF CANADA
8.38 04/01/2015 Yes NR NR C 100.000 -


ABY.GD ABITIBI CONSOLIDATED INCORPORATED
7.40 04/01/2018 No NR NR C 99.287 -


BOW.GC BOWATER INCORPORATED
9.38 12/15/2021 No NR NR C 99.250 -


ABY.GE ABITIBI CONSOLIDATED INCORPORATED
7.50 04/01/2028 No NR NR C 99.184 -


ABY.GF ABITIBI CONSOLIDATED INCORPORATED
8.50 08/01/2029 Yes NR NR C 99.449 -


ABY.GI ABITIBI CONSOLIDATED INCORPORATED
8.85 08/01/2030 Yes NR NR C 99.983 -




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Last Updated: 8/4/2010

Corporate Bond Search Results
Wednesday, August 04, 2010






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- WASHINGTON MUTUAL INCORPORATED
4.00 - Yes NR BB D 98.500 -


- WASHINGTON MUTUAL INCORPORATED
7.75 - No NR NR A- 100.000 -


WAMU.IE WASHINGTON MUTUAL INCORPORATED
4.00 01/15/2009 No NR NR D 99.604 -


WAMU.GL WASHINGTON MUTUAL INCORPORATED
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WAMU.IX WASHINGTON MUTUAL BANK FA
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WAMU.JB WASHINGTON MUTUAL INCORPORATED
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WAMU.JJ WASHINGTON MUTUAL BANK FA
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WAMU.IL WASHINGTON MUTUAL INCORPORATED
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WAMU.HE WASHINGTON MUTUAL INCORPORATED
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WAMU.IZ WASHINGTON MUTUAL BANK FA
0.41 06/16/2010 No NR NR NR 100.000 -


WAMU.IY WASHINGTON MUTUAL BANK FA
5.55 06/16/2010 No NR NR NR 99.837 -


WAMU.JH WASHINGTON MUTUAL BANK FA
0.54 02/04/2011 No NR NR NR 100.000 -


WAMU.HV WASHINGTON MUTUAL BANK FA
6.88 06/15/2011 No NR NR NR 99.816 -


WAMU.JC WASHINGTON MUTUAL INCORPORATED
5.50 08/24/2011 No NR NR D 99.901 -


WAMU.IP WASHINGTON MUTUAL INCORPORATED
5.00 03/22/2012 No NR NR D 99.516 -


WAMU.IO WASHINGTON MUTUAL INCORPORATED
3.50 03/22/2012 No NR NR D 100.000 -


WAMU.IS WASHINGTON MUTUAL INCORPORATED
3.22 09/17/2012 No NR NR D 100.000 -


WAMU.HZ WASHINGTON MUTUAL BANK FA
5.50 01/15/2013 No NR NR NR 99.685 -


WAMU.JA WASHINGTON MUTUAL BANK FA
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