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WOW!BIG NEWS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Published September 7th, 2010 at 6:19 p.m. | Updated at 18:20
AbitibiBowater expects to generate net profits of juicy next year
Canadian Press
AbitibiBowater paper mill, to be relieved of its restructuring process judicial October 14, expects to generate profits totaling U.S. $ 1.5 billion between early 2011 and late 2014.
According to a document filed in court recently, the Montreal-based company expects to suffer a net loss of U.S. $ 427 million in 2010, then a net profit of U.S. $ 295 million in 2011 to U.S. $ 387 million in 2012 , U.S. $ 384 million in 2013 and U.S. $ 445 million in 2014.
In fact, net profits could be back in the second half of 2010, if we rely on projections of management.
As for revenues, they would spend 4.66 billion USD in 2010 to 5,340,000,000 in 2011 $, an increase of 14.5 percent. According to forecasts, then they remain relatively stable until 2014.
The calculations are based partly on the slow recovery experienced by the forestry sector in recent months, partly because of increased Chinese demand. They are also based on the painful rationalization AbitibiBowater establishment in recent months.
Thousands of employees lost their jobs, the company wishing to concentrate on what it considers to be its factories more efficient and less costly to operate. Moreover, no less than a quarter of headquarters staff was dismissed.
Furthermore, to restore its balance sheet, AbitibiBowater has obtained $ 615 million Cdn of the sale to Hydro-Quebec's interests in the Manicouagan hydroelectric company, whose $ 200 million were used to repay holders of bonds. The company has also pulled some $ 37 million from the sale of closed plants in Quebec, Ontario and British Columbia and $ 53 million from the sale of timberlands.
In addition, the financing costs of AbitibiBowater will decrease dramatically once the reorganization is complete. Currently, the company is awash in no less than U.S. $ 7 billion of unsecured debt and U.S. $ 1.1 billion of secured debt.
Finally, the company has benefited from the protection of the court to cancel more than 200 contracts, which would have saved $ 69 million CDN in 2010.
When the "new" AbitibiBowater will come, the debt of U.S. $ 7 billion has been converted into ordinary shares. The actions of the current company, they will be removed without compensation to their owners, as is often the case in such circumstances.
Value of nearly U.S. $ 4 billion
At the request of AbitibiBowater, the firm Blackstone has estimated that the new company would have a total value between 3.5 and 3.9 billion U.S. dollars. Taking into account the debt of U.S. $ 1.25 billion it will continue to drag, the new shares of Abitibi would have a total value of U.S. $ 2.4 billion.
The majority of the shares will be distributed to creditors, but a portion of 8.5 percent of the lot will be reserved for incentive plans for executive directors of AbitibiBowater. They will also receive a bonus linked to the restructuring of the company.
Each unsecured creditor will receive the best Canadian sum of $ 3036 CAN, regardless of the amount owed by Abitibi. The rest can take the form of company stock that often worth much less than the claims.
As for CBS, which AbitibiBowater owes money, a total of C $ 5 million granted to them, with the key to a limit on the maximum payment that will reach every worker.
To make all these payments and ensure that they have liquidity of at least U.S. $ 600 million in mid-October, AbitibiBowater after obtaining exit financing of up to U.S. $ 2.3 billion.
Of this amount, approximately $ CAN 130 million will come from the recent settlement with Ottawa in an expropriation case in Newfoundland, while the banks JP Morgan, Barclays and Citigroup have agreed to pay U.S. $ 300 million to Abitibi. Significant emissions rights and obligations will complement the whole.
On the other hand, employees in Quebec and Ontario AbitibiBowater should expect changes to their pension plans. Faced with unfunded liabilities of those who brush against the $ 160 million per year, the company has asked Quebec, at Queen's Park and Ottawa for a regulatory exemption.
Abitibi said it recently reached an agreement in principle with Quebec in this regard. The defined benefit plans would be processed by programs less attractive, but payments to retirees would remain unchanged.
Canadian creditors must approve the restructuring plan AbitibiBowater at a meeting scheduled Sept. 14 in Montreal
http://www.cyberpresse.ca/le-droit/actualites/economie/201009/07/01-4313347-abitibibowater-prevoit-degager-de-juteux-profits-nets-des-lan-prochain.php
Publié le 07 septembre 2010 à 18h19 | Mis à jour à 18h20
AbitibiBowater prévoit dégager de juteux profits nets dès l'an prochain
La Presse Canadienne
La papetière AbitibiBowater, qui doit se libérer de son processus de restructuration judiciaire le 14 octobre, prévoit dégager des profits totalisant 1,5 milliard $ US entre le début de 2011 et la fin de 2014.
Selon un document déposé récemment devant les tribunaux, l'entreprise montréalaise s'attend à essuyer une perte nette de 427 millions $ US en 2010, puis à dégager un bénéfice net de 295 millions $ US en 2011, de 387 millions $ US en 2012, de 384 millions $ US en 2013 et de 445 millions $ US en 2014.
En fait, les profits nets pourraient être de retour dès le deuxième semestre de 2010, si l'on se fie aux projections de la direction.
Quant aux revenus, ils passeraient de 4,66 milliards $ US en 2010 à 5,34 milliards $ en 2011, une augmentation de 14,5 pour cent. Selon les prévisions, ils resteraient ensuite relativement stables jusqu'en 2014.
Les calculs s'appuient en partie sur la lente reprise qu'a connue le secteur de la foresterie au cours des derniers mois, en raison notamment de l'augmentation de la demande chinoise. Ils se fondent également sur la douloureuse rationalisation qu'AbitibiBowater a mise en place au cours des derniers mois.
Des milliers d'employés ont ainsi perdu leur emploi, l'entreprise souhaitant se concentrer sur ce qu'elle considère être ses usines les plus efficaces et les moins coûteuses à exploiter. De plus, pas moins du quart du personnel du siège social a été licencié.
Par ailleurs, pour redresser son bilan, AbitibiBowater a obtenu 615 millions $ CAN de la vente, à Hydro-Québec, de ses intérêts dans la Compagnie hydroélectrique Manicouagan, dont 200 millions $ ont servi à rembourser des détenteurs d'obligations garanties. L'entreprise a aussi tiré quelque 37 millions $ de la vente d'usines fermées au Québec, en Ontario et en Colombie-Britannique et 53 millions $ de la cession de terrains forestiers.
En outre, les coûts de financement d'AbitibiBowater diminueront drastiquement une fois sa réorganisation terminée. À l'heure actuelle, l'entreprise croule sous pas moins de 7 milliards $ US de dette non garantie et 1,1 milliard $ US de dette garantie.
Enfin, la compagnie a profité de la protection de la cour pour faire annuler plus de 200 contrats, ce qui lui aura permis d'économiser 69 millions $ CAN en 2010.
Lorsque le «nouveau» AbitibiBowater verra le jour, la dette de 7 milliards $ US aura été convertie en actions ordinaires. Quant aux actions de la compagnie actuelle, elles seront supprimées sans compensation pour leurs détenteurs, comme c'est souvent le cas en pareilles circonstances.
Valeur de près de 4 milliards $ US
À la demande d'AbitibiBowater, la firme Blackstone a évalué que la nouvelle entreprise aurait une valeur totale oscillant entre 3,5 et 3,9 milliards $ US. En tenant compte de la dette de 1,25 milliard $ US qu'elle continuera à traîner, les nouvelles actions d'Abitibi auraient une valeur globale de 2,4 milliard $ US.
La plus grande partie des actions sera remise aux créanciers, mais une portion de 8,5 pour cent du lot sera réservée aux programmes d'intéressement destinés aux dirigeants d'AbitibiBowater. Ceux-ci auront également droit à une prime liée à la restructuration de l'entreprise.
Chaque créancier non garanti canadien recevra au mieux la somme de 3036 $ CAN, peu importe la somme qu'Abitibi lui doit. Le reste pourra prendre la forme d'actions de l'entreprise qui vaudront souvent bien moins que les créances.
Quant aux employés canadiens à qui AbitibiBowater doit de l'argent, une somme totale de 5 millions $ CAN leur est consentie, avec à la clé un plafond quant au versement que pourra toucher chaque travailleur.
Pour effectuer tous ces paiements et s'assurer d'avoir des liquidités d'au moins 600 millions $ US à la mi-octobre, AbitibiBowater compter obtenir un financement de sortie pouvant atteindre 2,3 milliards $ US.
De cette somme, quelque 130 millions $ CAN proviendront du récent règlement conclu avec Ottawa dans une affaire d'expropriation à Terre-Neuve, tandis que les banques JP Morgan, Barclays et Citigroup se sont engagées à prêter 300 millions $ US à Abitibi. D'importantes émissions de droits et d'obligations viendront compléter le tout.
D'autre part, les employés québécois et ontariens d'AbitibiBowater doivent s'attendre à des changements à leurs régimes de retraite. Face aux déficits actuariels de ces derniers, qui frôlent les 160 millions $ par année, l'entreprise a demandé à Québec, à Queen's Park et à Ottawa une dérogation réglementaire.
Abitibi dit avoir récemment conclu un accord de principe avec Québec à cet égard. Les régimes à prestations déterminées seraient transformés par des programmes moins avantageux, mais les versements des retraités demeureraient inchangés.
Les créanciers canadiens doivent approuver le plan de restructuration d'AbitibiBowater lors d'une assemblée prévue le 14 septembre à Montréal.
To complete my idea. The complexity of the evaluation of the company is also difficult to understand because we are dealing with a market decline in the newsprint industry .. Thus, in this context that AbitibiBowater holds the monopoly status, manages this decrease in folding paper prices low for imposing and so devised a rationalization Assen supply and demand while significantly reducing production costs. So we can not evaluate a decent company that its role is itself a monopoly in handling where domination is a priority in this case. The true value of the giant AbitibiBowater will emerge in 2011 when the giant will rise, it will be big and strong. Hoping that there will be a reconnaisssance for old sharesholders who built
Another question I ask myself. Is the law of Chapter 11, supports an abuse of power in the sense that the leaders a bankrupt company have their hands tied? If yes, there are no longer master of their decision, and can no longer meet their duty to their Shareholders. In this sense, the process of restructuring is under the influence of manipulating the continuity of those who used CREDIT DEFAULT SWAPS and which paved the road to bankruptcy. Now, everybody says, everybody knows that our capitalist system is in a development where proffiteurs of high finance are plundering the wealth by cheating sophisticated mechanism. They are strong, know how to circumvent the laws and even if people managed to pinch them, the few fines can not stop them. Chapter 11 focuses not on surveys but on numbers and on a process of fiscal consolidation company for a successful exit of the BK.
Only the SEC could help in this case, alas! It does not seem to see anything. Yet men like Soros imminent has rightly said that it was this manipulation that had pushed AbitibiBowater into bankruptcy.
__________________________________________________________________
CREDIT DEFAULT SWAPS SHOULD BE OUTLAWED -- Soros
George Soros has finally had a chance to figure out what these CDS things are all about. And he's had enough:
BEIJING, June 12 (Reuters) - Credit default swaps are "instruments of destruction" that should be outlawed, billionaire investor George Soros said on Friday.
Soros said the asymmetry of risk and reward embedded in CDS exerted so much downward pressure on the bonds underlying the contracts that companies and financial institutions could be brought to their knees.
"Some derivatives ought not to be allowed to be traded at all. I have in mind credit default swaps. The more I've heard about them, the more I've realised they're truly toxic," he told a banking conference.
"CDS are instruments of destruction which ought to be outlawed," Soros told a meeting of the Institute of International Finance, many of whose member banks and financial institutions are active participants in the huge CDS market.
Going short on bonds by purchasing a CDS contract carried limited risk but almost unlimited profit potential. By contrast, selling CDSs offered limited profit and practically unlimited risk, Soros said.
This asymmetry, which encouraged investors in effect to sell corporate bonds short, was reinforced by the fact that CDS were traded and so tended to be priced as warrants, which could be sold at any time, and not as options, he added.
Credit default swaps are used to protect against nonpayment of debt or to speculate on a company's credit quality.
But Soros said: "People buy a CDS not because they expect an eventual default but because they expect them to appreciate in response to adverse developments."
SKEWED INCENTIVES:
He said one financial institution that discovered to its cost the risk/reward distortions of CDS was insurer American International Group (AIG.N), which was a big seller of CDS, offering banks protection against a deterioration in their bond portfolios, especially mortgage-linked securities.
The U.S. government stepped in to save AIG from collapse under bad mortgage bets last September, and has put up to $180 billion at the company's disposal since.
"AIG thought it was selling insurance on bonds and as such CDS were outrageously overpriced. In fact AIG was selling bear market warrants and it severely underestimated their value," Soros said.
At this point, the phenomenon that Soros describes as reflexivity kicked in. That is to say, the mispricing of financial instruments -- in this case, CDS -- affected the fundamentals that the prices were supposed to reflect.
Nowhere were the consequences of the ensuing chain reaction more severe than in the case of financial institutions, whose ability to do business depended on trust, Soros argued. He cited the failures of Bear Stearns and Lehman Brothers.
But the potential damage that CDS could do was not limited to financial firms, Soros added. He pointed to the bankruptcy of North America's largest newsprint maker, AbitibiBowater Inc (ABWTQ.PK), and the pending bankruptcy of General Motors (GM.N)
"In both cases, some bondholders owned CDS and they stood to gain more by bankruptcy than by reorganisation."It's like buying life insurance on someone else's life and owning a license to kill," he concluded.
Soros' criticism echoes fellow investor Warren Buffet's description of derivatives in 2003 as "financial weapons of mass destruction".
On derivatives in general, Soros said they should be as strictly regulated as stocks.
He said derivatives should be standardised and saw no case for custom-made derivatives, which he said only increased the profit margins of the financiers who tailored them.
Try Gilles Duceppe.
He is bilingual, I think. In addition he is the chief Bouchard and official opposition in Ottawa.
http://www.blocquebecois.org/Bloc.aspx?bloc=fa6e5d0a-ef96-4d8f-9f4d-04773f1c3a9a
To contact it.
http://www.blocquebecois.org/joindre.aspx
Abitibibowater before a parliamentary committee?
September 2, 2010 | 4:58 p.m.
Agency QMI
A parliamentary committee meets in Ottawa on Friday in order to convene soon the leaders of the AbitibiBowater paper to shed light on the permanent closure of factories in Gatineau and Dolbeau-Mistassini.
The MPs on the industry committee must determine when this meeting will take place and who will be the other witnesses called to testify.
The member for Chicoutimi-Le Fjord and spokesman of the industry for the Bloc Quebecois, Robert Bouchard, wants and strike while the iron is hot.
"Do not wait for the dismantling of factories in committee before receiving AbitibiBowater and other witnesses," he said.
MP wants among others to know why more executives will share the paper restructuring premiums totaling $ 6,000,000, while hundreds of workers left without jobs and could lose their pension plan.
"Why do they give bonuses to executives, we talk of millions in bonuses that it will cost. The company must explain why there are these injustices then, why there is this situation of double standards, "argued the MP who described this approach as" savage. "
The conference also aims to learn more about the overall restructuring plan AbitibiBowater to be filed in the weeks to come.
http://argent.canoe.ca/lca/affaires/canada/archives/2010/09/20100902-165809.html
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To contact Robert Bouchard. Deputy of the Opositera
http://www.robertbouchard.org/contact.php?table=27&menu=menu
As so aptly Minister Canon, this attitude is inapceptable, and he implores the Shareholders in order to end this practice.
Am I crazy, everything is the fault of the Shareholders, BONUS, THE BANCROUTE. In the law of BK, the duty of dirrigeants is working for its Shareholders. Quite the contrary, we are working to eliminate them with the help of the Federal Government of Canada signed a settlement agreement for the merged entity of the company to be sure to crush forever Shareholders equity. The law of BK, which the judge is ignoring the request of a equitie # committee to Shareholders since Mr. Paterson takes care with Fairfax.
Finally, for a meaningful assessment, this is impossible since they sell the properties, assets, and we put the monies in entities tempone unfair to allow this conspiracy to get rid of its primary duty, that is an equitable right to their Shareholders to protect thems. It's amazing to see such an injustice with a law that seems valid for the profiteers.
Hoping that the judge makes a miracle, but it seems trapped in a procedural defect which contradicted by monetary settlements in time for new entities emerging that target more than is being restructured.
If our government wanted to avoid the bankruptcy of the capitalist world, it will surely take a look at the procedures of this legislation to make it fairer.
An attitude of "inappropriate", according to Minister Cannon.
Canon implores the Shareholders of Abitibibowater to submit an ethics as officer for that its dirrigeants who are voting bonuses in BK. Hmmm! It should start by having a Fair Committee. How to explain this to the judge.
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The six million dollars in premiums that have to pay fifty executives AbitibiBowater annoying Conservative cabinet minister and MP for Pontiac, Lawrence Cannon.
In an interview with Le Droit, Mr. Cannon called on the company's shareholders to "seriously question" the leadership of the multinational in his act in an "inappropriate" at this time of difficulty.
"I think at this stage it is important for the company to be responsible and not take actions that run counter to the objective of sound management," said Cannon. The period is inappropriate and I hope that shareholders strongly questions the company's management. "
http://www.cyberpresse.ca/le-droit/dossiers/fermeture-dabitibibowater-a-gatineau/201008/31/01-4311462-une-attitude-inappropriee-selon-cannon.php
Only an idea.
Certainly hopes are slim, but I do not think this company with as many assets and so few shares is a logical solution. It is for those who want to build cheap .. If takeover there, it will be by the entities below, may be with Tembec. Thus, their involvement is strategic since the first moments of BK. In conclusion, for the government to invest in ABWTQ, there are only pension funds to settle. Thus, the deal is very close for this last step
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(DOC1) http://lapresseaffaires.cyberpresse.ca/economie/energie-et-ressources/200911/03/01-917774-abitibibowater-quebec-songe-a-une-participation.php
Speaking to reporters in Montreal, Mr. Gignac said the provincial government had formed a group with union representatives and the paper industry to find ways to reduce labor costs and raw material factories in Quebec . AbitibiBowater is under the protection of bankruptcy laws in Canada and the United States since last April. "Before the government becomes a shareholder of AbitibiBowater, all partners must make sacrifices to enable us to lower production costs in factories in Quebec, said the minister. This means the fiber costs and the cost of labor. " Quebec will not invest in AbitibiBowater as the company will not be able to present a "profitable business model," added Mr. Gignac.
------------------------------------------------------------------(DOC2) http://www.saglac-chibougamauchapais.ftq.qc.ca/modules/nouvelles/nouvelle.php?id=111&langue=fr
Threesome to save AbitibiBowater
The survival of AbitibiBowater may be going by the Caisse de depot et placement du Quebec and the Solidarity Fund QFL and the CSN
__________________________________________________________________
(Step 3 Deal ) Pension.
Ongoing discussions:
Currently under the protection of the Act arrangements with creditors of the companies, AbitibiBowater would not say yesterday the nature of his discussions with the Pension Board.
"Clearly one of the pieces that the company could emerge from the restructuring successfully, to find relief needed to fund the actuarial deficit", said a spokesman for AbitibiBowater, Peter Choquette, without advance on what these concessions might be. "We try not to penalize retirees," he said.
The spokesman said that the talks are progressing, but no decision has yet been taken. However, given the current restructuring process, "it is imperative for the company to resolve it as soon as possible," he added.
"Discussions are continuing, also confirmed Jolyane Pronovost, the press secretary to the Minister of Employment and Social Solidarity, Julie Boulet.
http://www.cyberpresse.ca/le-soleil/affaires/actualite-economique/201008/26/01-4310166-abitibibowater-de-lespoir-pour-les-retraites.php
The brokerage firms have submitted documents this week with a notice of cancellation of the company relating to the plan réorgarnisation company. This is probably panicking people. Thus, the company press lemon maturity to deal with the BK. The regulation of the Government of Canada with AbitibiBowater is a real joke to encourage the dictatorship of Williams who is considered the hero of this saga, and yet, the government began an accomplice with the company to cheat workers and shareholders that might have rights to equity. But we took care of the amount paid after the restructuring. It is the abuse of capitalism by supporting a policy questionable to serve justice. Hoping that the system bankruptcy court see more clearly in this whole affair that begins to not feel too good.
Mr. Paterson, must begin to look forward for this to end because when you are forced to stretch in the amount of time of payment, they are afraid to look bad with cash too well dressed, they began to be asking a lot of questions about the value of their assets .. Ridiculous, This company is now strong enough to leave the backstop without BK and return to complete their actions. They do not have 800 millions of shares, they have only 50 millions. I would not be surprised to see an acquisition soon as the face of this manipulation may fall to the general public scorn.
I heard that some disgruntled former senior employees had a website and a committee to oversee their business with the company. Finally, does anyone can give me their address of their site or if part of your alliance.
http://www.bloomberg.com/news/2010-08-25/abitibibowater-wins-approval-of-1-35-billion-bankruptcy-exit-financing.html
AbitibiBowater Wins Approval of $1.35 Billion Bankruptcy Exit Financing
By Michael Bathon - Aug 25, 2010 1:34 PM GMT-0400
AbitibiBowater Inc., the world’s biggest newsprint maker by capacity, won court approval to borrow as much as $1.35 billion to help fund its exit from bankruptcy.
U.S. Bankruptcy Judge Kevin J. Carey gave the company permission to obtain the funds after no objection to the financing proposals was filed, according to court documents filed yesterday in Wilmington, Delaware.
Units of JPMorgan Chase & Co., Barclays Plc and Citigroup Inc. will be the agents for a $600 million asset-based loan and each will contribute $100 million, court papers show. The company will also seek to raise as much as $750 million through a notes offering in the capital markets.
The Montreal-based paper maker said in court filings that it could raise the $750 million in exit financing in the form of “a secured term loan credit facility” if the “notes offering is not available on satisfactory terms.”
The proceeds from the loans and notes will be used to make payments under the company’s restructuring plan and to help fund its business operations after exiting bankruptcy protection, according to court documents.
Under AbitibiBowater’s restructuring plan, unsecured creditors would share the reorganized company’s stock in addition to the right to participate in a $500 million notes offering. The notes would be convertible into equity in the reorganized company, according to a May 24 statement. A hearing is scheduled for Sept. 24 when Carey will consider approving the reorganization plan.
Secured Creditors
The company would pay secured creditors in full in cash, or some other mutually agreed-upon treatment that would give them a full recovery, according to the disclosure statement. The company’s existing shareholders would be wiped out under the proposal.
AbitibiBowater has 22 pulp and paper mills and 26 wood- products plants in the U.S., Canada, the U.K. and South Korea. The company was formed in October 2007 with the merger of Abitibi-Consolidated Inc. and Bowater Inc. in a stock transaction valued at about $4.8 billion.
The case is In re AbitibiBowater Inc., 09-11296, U.S. Bankruptcy Court, District of Delaware (Wilmington).
I think I saw Aurelius capital too. Perhaps as an observer.
Published August 24, 2010 05:00 AM | Updated 05:00 AM
AbitibiBowater: premiums that infuriate ex-workers
Johanne Martin, Freelance
Sun
(Donnacona) Decisions taken by the multinational AbitibiBowater no end to spark outrage among former workers of the factory Donnacona. Still waiting for money they are owed by the paper, they have recently learned that generous bonuses will be paid to certain executives.
"They have closed, they have stolen the security operations that we had until April 2011, in addition, he had to accept being cut off for emerge from bankruptcy and now here they are paid Bonus! "protested a former employee of the paper who contacted The Sun under the guise of anonymity.
In a document sent to all employees and former employees of AbitibiBowater who filed a complaint with the company (continuation, severance or grievance), the man has learned that a motivation program based on will yield about fifty members of the Executive a cash prize worth a total of about six million U.S. dollars. All that "where the protection against creditors will no longer apply," says the document.
"What is happening is scandalous," resumed the old stationer. "Especially when you consider that the multinational has saved us at least $ 75 million in cash which will not be delivered to sixty people who were eligible to retire at age 55."
Claims of $ 52 million
The amounts claimed through the individual actions collectively brought by former employees of the paper Donnacona which added the handshakes that have not yet been paid by AbitibiBowater also amounted to $ 52,000,000 .
According to a tentative agreement occurred in recent weeks, some $ 4.7 million would be distributed to former employees, but expects that the trustee Ernst & Young does a proportion of the amount.
In shutdown since the end of January 2008, the AbitibiBowater mill employed 240 workers Donnacona and executives annually and produced 230,000 metric tons of paper for printing business almost exclusively to North America.
http://www.cyberpresse.ca/le-soleil/affaires/les-regions/201008/23/01-4309088-abitibibowater-des-primes-qui-font-rager-les-ex-travailleurs.php
Bilateral Investment Treaty
If I understand, by this treaty, our rights as shareholders are protected by that document. Paterson pursuit Newfoundland to protect its Shareholders by applying international law. Thus, the power of this treaty was provided accordingly. Mr. Paterson's applies in the same direction and its formal against Newfoundland and says defense its Shareholders. Implicitly, the judge now has a pertinent value in the hands by international treaty which is mandated in the defense of the rights of shareholders who invest abroad. In the case of the dispute with Newfoundland AbitibiBowater represents almost one billion. Surely the former Shareholders have equitie and can not be discriminated against without this regulation is made.
Bilateral Investment Treaty
A Bilateral Investment Treaty (BIT) is an agreement establishing the terms and conditions for private investment by nationals and companies of one state in the state of the other. This type of investment is called Foreign direct investment
Most BITs grant investments made by an investor of one Contracting State in the territory of the other a number of guarantees, which typically include fair and equitable treatment, protection from expropriation, free transfer of means and full protection and security. The distinctive feature of many BITs is that they allow for an alternative dispute resolution mechanism, whereby an investor whose rights under the BIT have been violated could have recourse to international arbitration, often under the auspices of the ICSID (International Center for the Resolution of Investment Disputes), rather than suing the host State in its own courts.[1]
There are currently more that 2500 BITs in force, involving most countries in the world.[2] Influential capital exporting states usually negotiate BITs on the basis of their own "model" texts (such as the US model BIT).
http://www.worldlingo.com/ma/enwiki/en/Bilateral_Investment_Treaty/1
Newfoundland and Labrador case.
Thus, to continue this discussion on equity cases relevant since valuable in money and gain more time by the loss of revenue from the dam. Now the question is, is that the judge could arcorder an amendment allowing a recovery time of Shareholders which Mr. Paterson pursuit of the Newfoundland government to protect the rights of its Shareholders. So this is a question of rights and justice which time the deadline for the final decision of 24 September to enable the company to come out of BK, can not bully the due rights of settlement of this case is priority for straightening a final decision on equity for the former shareholders of AbitibiBowater. I think it is a legitimate sense of justice because the case concerns an extraordinary fact. Could we freeze the old shares as this regulation is completed?
Excerpt of 2008 K10. Newfoundland and Labrador case.
We may not be compensated for the expropriation of certain assets by the Government of Newfoundland and Labrador.
On December 16, 2008, following our December 4, 2008 announcement of the permanent closure of our Grand Falls paper
mill, the Government of Newfoundland and Labrador, Canada passed legislation under Bill 75 to expropriate all of our
timber rights, water rights, leases and hydroelectric assets in the Province of Newfoundland and Labrador, whether partially
or wholly owned through our subsidiaries and affiliated entities. The Government of Newfoundland and Labrador also
announced that it does not plan to compensate us for the loss of the water and timber rights, but has indicated that it may
compensate us for certain of our hydroelectric assets. However, it has made no commitment to ensure that such compensation
would represent the fair market value of such assets. As a result of the expropriation, in the fourth quarter of 2008, we
recorded, as an extraordinary loss, a non-cash write-off of the carrying value of the expropriated assets of $256 million, or
$4.45 per share, with no related income tax benefit.
We have retained legal counsel to review all legal options. On April 23, 2009, we filed a Notice of Intent under NAFTA,
relating to the expropriation of these assets specifying violations by the Government of Newfoundland and Labrador under
the terms of NAFTA, for which the Government of Canada is responsible. Although there is no guarantee regarding the
outcome and receipt of fair compensation under the terms of NAFTA, we believe that the Government of Newfoundland and
Labrador has violated the terms of NAFTA, and that we (a U.S. domiciled company) should be fairly compensated for the
expropriation. Under the terms of NAFTA, compensation for expropriated assets is based on fair market value. The Notice of
Intent asserts that the expropriation was arbitrary, discriminatory and illegal, and we are seeking in excess of CDN$300
million in direct compensation for the fair market value of the expropriated rights and assets, plus additional costs and further
relief as the Arbitral Tribunal may deem just and appropriate. We have asserted in the Notice of Intent that the expropriation
unquestionably breaches Canada’s NAFTA obligations on a number of grounds, including among others: (i) the criteria for
expropriation are not met in Bill 75; (ii) Bill 75 does not ensure payment for the fair market value of the expropriated rights
and assets; (iii) Bill 75 purports to strip us of any rights to access the courts, which is independently a violation of NAFTA;
and (iv) Bill 75 is retaliatory in nature and discriminates against us. We have filed the Notice of Intent as part of the dispute
resolution mechanism available under NAFTA and will submit the claim to arbitration in three months, pursuant to the
relevant NAFTA provisions, should this matter not be resolved by that date. Although we believe that the Canadian
28
Government will be required to compensate us for the fair market value of the expropriated assets, we have not recognized
any asset for such claim in these financial statements.
http://www.abitibibowater.com/uploadedFiles/Menus/Investors/2008%2010-K%20final%20English%20for%20printing%282%29.pdf
The move of Peter Shah to newfoundland case is really relevant and probably the logical key giving more value to come to assess a equitie pertinent to Shareholders of Abitibibowater.
Furthermore, As a result of the expropriation, in the Fourth Quarter of 2008, they Recorded, as an extraordinary loss, a non-cash write-off of the carrying value of the expropriated assets of $256 million, or $4.45 per share, with no related income tax benefit. Since that time, AbitibiBowater demands 500.000 million and maybe the final claim will be 800 million. So here we have a real asset in suspends waiting for court proceedings, which were taken by Mr. Paterson to protect the rights of its Shareholders. But I do not see how the judge can say in all legimacy that is irrelevant to this case, since it's also awaiting a judicial surely favorable for Shareholders of abitibibowater.
I was also wondering, if we're trading shortnaked. The Shareholders's of Abitibibowater are victim of manipulation that put the companies in this situation. Why the SEC did not investigate AbitibiBowater. If so, when is what they will know the results?
For the judge alone seems relevant figures. But the rental forests do not appear. However it has a value. As production costs can not be revealed for the concurence, this is not relevant. However this non pertience has real value in the coming financial results. But by this restructuring to come in the renewal of labor contracts and the settlement of pension funds so there is a relevance. So I think the judge should not make the final decision until the completion of this emergence is not completed.
Just a thought.
The difficulty of a fair valuation of the company is that its real recovery will happen in 2011. So what are the steps that issues must be considered to be fair to the shareholders.
We're at an impasse of war figures for the valuation of assets for equitie. What is important to mention, the judge is the fact that the company is a monopoly in the paper and has enormous power over the price control. Thus, it is the control step of lowering its production costs to be able to operate in a market at competitive with internet. But for this it is the post-emergence to raise prices to around between $600.00 and $ 650.00 per ton. So this is what the judge should understand, because we presently have evolved with a sales price between $ 450.00 and $ 500.00 per ton and a production cost of $ 500.00 per ton. Thus, the true face of the economic recovery of the company will emerge only at the stage of the restructuring of the emergence and mounted in paper prices during the year 2011.
In sum, to have a fair trial and reasonable with a monopoly that dominates the market with cheap and reduce production costs for its survival is healthy for AbitibiBowater. However, during this period she is showing off a face insecure profitability. What is important to emphasized that the margin of profit that the company will be able to take place after a sale price of $ 600.00 per ton. With all the cost savings the profit margin will be like in the good years where we sold more than $ 800.00
Imissed the link.
[img]Facts
With 15.6 million hectares (38.4 million acres) of forestland certified, AbitibiBowater is among the largest sustainable forest management certificate holders in the world.
[/img]
http://stage.abitibibowater.com/content3.aspx?id=2264&langtype=1033&rdr=true
Abi said to have a total of 15.6 million hectares (38,400,000 acres) of forests certified, AbitibiBowater is one of the largest holders of certificates for sustainable forest management worldwide.
About 1%
-------------------------------
As illustrated on the map, Newfoundland
Woodlands now has jurisdiction within nine (09)
management districts, which encompass
approximately 1.67 million hectares
http://www.abitibiconsolidated.com/uploadedFiles/Menus/Sustainability/Newfoundland%20Annual%20Progress%20Report%202007.pdf
Newfoundland woodlands defined forest area.2 0 0 7 A N N U A L R E P O R T
http://www.abitibiconsolidated.com/uploadedFiles/Menus/Sustainability/Newfoundland%20Annual%20Progress%20Report%202007.pdf
Hi! i sold my shares but if i can help you by my research, i will do. Good luck.
Price Merchantable timber.
e) Any loss or damage to Abitibi-Consolidated property or assets
will be reimbursed to Abitibi-Consolidated by replacement of an
equivalent asset or financial compensation at the fair market
value.
10.4 Wildlife
The forests of the province support many types of wildlife (includes both animal species
and plant species). Because the Newfoundland portion of the province is located on an
island, with a limited landbase, it is public concern that forest activity such as harvesting,
can disturb wildlife habitat, and have a negative effect on any species at any given time
(For example, if suitable areas are not left for moose, yarding may be extremely difficult
during the winter season). Therefore, it is a goal of this company to maintain forest
biodiversity and wildlife habitat over time and space on its DFA.
Some species already identified which maybe negatively affected by harvesting activity
and require special management considerations include:
Compensation Rate Schedule
Merchantable Timber $ 60.00 / m3
Non-merchantable Mature Timber $ 1.75 / m3
Tree Plantation / Natural Regeneration $ 520.00 / hectare
Immature Trees $ 1,192.00 / hectare
Note : These rates are subject to change.
http://www.abitibiconsolidated.com/uploadedFiles/Menus/Sustainability/Newfoundland%20SFM%20Plan%20%E2%80%93%202001-2021.pdf
Thank you to all honest people in this battle. The impotant is the integrity of our efforts and in this sense we are the big winners. As long as those who rob us of our shares that they roast in hell. Special thank you to L and H. They are great people.
As I already said previously. Minister Raymond Bachand has already said,18 april 2009, that AbitibiBowate was not hopelessly insolvent.
In addition, he said he had money for them after the restructuring, for the modernization.
http://www.ledevoir.com/economie/246377/quebec-vient-a-la-rescousse-d-abitibibowater
Raymond Bachand, Minister of Finance and Regional Development, said that AbitibiBowater is not on life support since its activities generate profits and that the problem is debt financing. This does not mean however that all units of the group are profitable. The restructuring will eliminate the problem cases and settle the debt financing. "Once the debt is settled, we may proceed to the phase of modernization. SGF could then participate, "concluded the Minister.
This is very realistic. These are the target objective following the emergence of the company. $450.00 per ton for AbitibiBowater is the goal for 2011. So at $550.00 per ton selling price equals $100.00 profit. On a production capacity of 7 million ton we have
$700 millions of profit. This only for the paper. The board of Abitibi will die laughing if they manage to make everyone believe they are as being “hopelessly insolvent.
Inportant facts to note: The concluding negotiations cost reductions below with the unions, will only apply when the company will be emerging, about the month of November or early of the Year 2011. Thus, this application of the new deal that would reduce production costs between $ 50.00 and $ 70.00 per ton, only at this moment. For the Canadian sector production costs are between $ 430.00 and $ 470.00 per ton. So, for a sales price of $ 600.00 tonnes, the billion of profit for 2012 is quite possible and maybe even in 2011. So it is wrong to claim a recovery pathetic for this company.
http://www.cyberpresse.ca/le-soleil/affaires/actualite-economique/201005/10/01-4279086-nouvelle-convention-collective-pour-les-employes-dabitibibowater.php
Down 10% pay
The agreement includes a wage reduction of 10%. However, all existing provisions relating to pensions and accrued benefits are maintained. The employment agreement also provides for the creation of a new pension plan jointly administered with employer contributions of 10% for future servic
Discussions continue on Abitibi land sale
Posted By By Mike Aiken
Posted 21 hours ago
AbitibiBowater spokesman Jean-Philippe Cote confirmed the forestry giant is still talking with local interests regarding the sale of surplus lands. However, he wouldn't commit to a deadline for closing the deal.
"I'm not in a position to confirm we have a ratified deal yet," he said during a short interview Thursday afternoon.
Nor was he able to expand on the nature of their discussions with potential buyers. A title search for the parcels in question at Rideout Bay showed they were still registered to Abitibi.
Investor John Gale wasn't immediately available to provide an update Thursday, but in other media reports recently he has talked openly about his plans for a $1-billion project that he's working on with the help of consultants at CBRE and Chartier Associates.
A representative from the Winnipeg office of the developer confirmed they'd been hired to assist with the Kenora project, but reserved comment on the nature of their work.
In a recent interview with Northern Ontario Business, Gale described a $930-million vision that would include a five-star resort and conference centre, theme park, condominiums and RV park. The article talked about developments at Cameron Bay, as well as Rideout.
Optimism surrounding an announcement in February 2009 turned out to be premature as Gale's interview referred to a fall schedule for closing the extensive land deal, followed by a three to seven-year construction period.
Following his speech to the Kenora and District Chamber of Commerce last February, there was hope the sale of the land might be concluded before summer, but it hasn't turned out to be the case.
The land went up for sale following the closure of the Ninth Street paper mill in 2005.
http://www.kenoradailyminerandnews.com/ArticleDisplay.aspx?e=2672615
Thank you, big work.
Good shot of the SEC. Strong punishment for illegal financial.
16 July 2010
Goldman Sachs agrees record $550m fine
Goldman Sachs sign Goldman Sachs was charged with misleading investors
US bank Goldman Sachs has agreed to pay $550m (£356m) to settle civil fraud charges of misleading investors.
The charges concerned Goldman's marketing of mortgage investments as the US housing market faltered.
US finance watchdog the Securities and Exchange Commission said it was the biggest fine for a bank in its history.
The UK's Royal Bank of Scotland, which is now 84% owned by the UK taxpayer and lost about $840m in investments, will receive $100m compensation.
German bank IKB Deutsche Industriebank will receive $150m, with the remaining $300m going to the US Treasury.
Terms of the settlement are subject to approval by a federal judge.
The SEC said Goldman had acknowledged that marketing material contained "incomplete information".
In a statement, Goldman did not admit legal wrongdoing but said the move was "the right outcome for our firm, our shareholders and our clients".
Despite the record fine, Goldman shares rose by 4.5%, reflecting the fact that many analysts felt the firm had got off lightly.
"They pay $550 million and they get an $800 million pop in their stock price... they got off easy," said Kevin Caron at Stifel, Nicolaus & Co.
Goldman made a profit of $3.5bn in the first three months of this year.
Housing collapse
In April, the SEC charged Goldman with failing to disclose "vital information" that one of its clients, Paulson & Co, helped to choose which securities were packaged into a mortgage portfolio that was then sold to investors in 2007.
It claimed Goldman did not disclose that Paulson, one of the world's largest hedge funds, had bet that the value of the securities would fall.
The SEC alleged that investors in the mortgage securities, packaged into a vehicle called Abacus, lost more than $1bn (£650m) in the US housing market collapse.
Goldman, arguably the world's most prestigious investment bank, had escaped relatively unscathed from the global financial meltdown.
http://www.bbc.co.uk/news/business-10656699
To complete what had been previously discussed on a possible intervention of the Government of Quebec. Here is an excerpt of what Mr. Bachand said in April 2009, about a Quebec government assistance for AbitibiBowater by SGF. It is interesting to hear at this time there ABITIBIBOWATER was profitable. That the problem was funding.
==================================================================
Raymond Bachand, Minister of Finance and Regional Development, said that AbitibiBowater is not on life support since its activities generate profits and that the problem is debt financing. This does not mean however that all units of the group are profitable. The restructuring will eliminate the problem cases and settle the debt financing. "Once the debt is settled, we may proceed to the phase of modernization. SGF could then participate, "concluded the Minister.
http://www.ledevoir.com/economie/246377/quebec-vient-a-la-rescousse-d-abitibibowater
THE FOREST ACT.
I finf this article. May be this can help you.
http://web2.gov.mb.ca/laws/statutes/ccsm/_pdf.php?cap=f150
Newsprint Edges Up To Near $600
Philip M. Stone July 8, 2010 Follow on Twitter
Slowly but surely the price of 30-lb newsprint in the US is approaching $600 per metric tonne. FOEX indexes showed this week at $592.57 and that marks a 16% ($81) increase for the year but since most Canadian mills need around $700 for a decent profit there is still a long way to go.
newsprint rollProducers had said they were looking for $25 a tonne increase in each of June and July but they fell well short in June – the monthly increase was just $9 – but at least the curve continues up. And there is the good news that while newsprint usage by US dailies continues in decline, the percentage rate of monthly decline has dropped in each of the past four months. So while US decline may not yet have hit rock bottom, improving exports, especially to Asia, combined with a decline in the decline are painting a better picture for producers.
Producers know they are dealing with a North American newsprint market in which demand fell by about 23% last year, but what’s the outlook? David Paterson, AbitibiBowater CEO, expects demand this year to decline a further 8% and in each of the next four years the decline will the in the region of 5%-7%. Indeed figures from the Pulp and Paper Products Council would support that, saying that consumption by US daily newspapers dropped 8.1% in May compared to the same month in 2009. Exports rose in the same period rose 12.5%.
But even the increased exports elsewhere don’t make up for the North American usage decline which is why producers like AbitibiBowater have been busy the past three years closing mills to cut supply beyond user cutbacks and thus still force up prices. At AbitibiBowater, for instance, newsprint capacity production has been cut by 36% with newsprint now accounting for just 38% of the company’s sales compared to 45% three years ago.
Newsprint pricing historically has been a story of deep valleys and high mountains. In the most recent cycle, September, 2009 saw rock-bottom at 445.89, a dramatic fall from January of the same year when the price was around $750 – about a 12-year high. The price crashed as newspapers implemented every way they could think to reduce newsprint usage.
But there are signs of a change. In Edmond, Oklahoma the Edmond Life and Leisure weekly giveaway is actually increasing its page size. Yes, that is not a misprint, they are growing the length of the page by four inches!
Publisher Ray Hibbard told his readers in a column, “Over the last five years, the cost of newsprint has caused most broadsheet newspapers to shrink their web. That means they have gotten narrower. In fact, we noticed that most of them are as narrow as our original format. When we were thinking about how to give our readers and advertiser more in the future, it seemed logical to do it by just adding four inches to the bottom of the page. As they say, no rocket science needed folks.
“You may be asking yourself how we can afford to grow when most newspapers across the country are shrinking in size, distribution and staffing. It is a good question and one our partner, Chris Hoke, was anxious to learn about as well. The loss of advertising revenue for most newspapers around the country has come from a loss of national advertisers. National chains have gone to pre-prints, broadcast and web based sales leaving giant holes in daily newspapers all over the country. I guess you could say we have a good news, bad news situation. We never had much of the national advertising so we did not have the short fall many other papers suffered. It is great business to get and our national advertising has increased this year but it is still the support of our local merchants that keeps us going and we appreciate it.”
So maybe at least at the local community newspaper level things are looking up and as national advertising does make somewhat of a comeback to the larger newspapers their newsprint usage may well increase, too.
Even at the New York Times where first half newsprint costs were “favorable” to the same period last year, according to a company statement, the forecast for the last half of the year is “unfavorable”, probably a combination of higher prices and also more usage as national advertisers slowly come back – the newspaper says Q2 ad revenue grew over the same period a year earlier.
It’s very doubtful that newspapers will return to the good old days of distributing copies outside their core advertising area; it’s doubtful they’ll be printing many bulk copies; it’s doubtful that editorial will get back to staffing levels of three years ago; and it’s doubtful that advertising will return to its former glory, but for all that, newspapers may start to get a little thicker as the economy recovers, and that can only be good news for both users and producers.
http://followthemedia.com/fittoprint/newsprint08072010.htm
Certainly, the way to the Quebec government lacked rigor sometimes, but promote the economy required more risk on their part. But you're right, the current economic climate has changed, we can not afford to lose money in projects such colssalles Gaspésia to save a single plant. Surely that Quebec will be accountable to its taxpayers.
For AbitibiBowater, the risk might be interesting for Quebec. However, they probably want to ensure that management is competent? In this sense, efforts to reduce production costs seems achieved. For what is their exit plan backstop, it is not very serious from them and leaves us in doubt inconsistent with a lack of information to target more a rejection of those not part of this plan.
Also, I do not think we need government investment in the company. Abitibibowater has enough cash in my opinion, for a successful graceful exit without issue new shares for exit financing unpopular and suspicious. The important thing is to have a plan and avoiding confrontation and put energy on the Respect for all participants in the process, provided that the stockholders sharehoders.
Thank you for your effort in French, it was good.
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Certainement, que la façon de faire du gouvernement du Québec manquait de rigueur quelquefois, mais, promouvoir l'économie demandait plus de risque de leur part. Or, vous avez raison, le contexte économique actuel a changé, on ne peut plus se permettre de perdre des sommes colssalles dans des projets tel la Gaspésia pour sauver une seul usine. Surement que Québec aura des comptes à rendre à ses contribuables.
Pour Abitibibowater, le risque pourrait être intéressant pour Québec. Cependant, ils veulent surement s'assurer que le management est compétent? Dans ce sens, les efforts à réduire les coûts de production me semble atteint. Pour ce qui est de leur plan de sortie Backstop, cela ne fait pas très sérieux de leur part et nous laisse dans un doute incohérent par un manque d'informations qui cible bien plus un rejet de ceux ne faisant pas partie de ce plan.
De plus, je ne pense pas que nous ayons besoin que le gouvernement investisse dans la compagnie. Abitibibowater a assez de liquidités, à mon avis, pour réussir une sortie honorable sans émettre de nouvelles actions pour un financement de sortie impopulaire et suspicieux. L'important, serait d'avoir un plan évitant la confrontation et ainsi mettre les énergies sur le respect de tous les participant du processus, autant les stockholders que les sharehoders.
Merci pour votre effort en français, c'était bien.
Glad you're back. I began to get worried. I hope you're well.
Quebec n'a pas d'argent direct? Peut être!! Mais indirectement par la SGF, il peut faire de quoi. La SGF est le bras financiers du gouvernement dont il a le contrôle et dont le mandat et les budgets sont colossals. Comme exemple, ils ont déjà contrôlé Donohue, Rexfor, Québec cartier mining vendu à Acelor Mital. Il y a La Caisse de Dépôt et placement du Québec mais ce dernier a perdu 40 milliars dans le dernier crash.
Enfin, si le gouvernement avait l'intention d'investir dans Abitibibowater, il le ferait logiquement par la SGF dont il contrôle le mandat et ainsi éviterait les critiques politiques. Rappelons nous le cas de la relance de la Gaspésia qui était une usine qu'Abi avait fermé. Québec a voulu la relancer avec Tembec et le projet a tourné à l'échec et Québec par la SGF a perdu pas loin de 1 milliard. http://www.radio-canada.ca/radio/maisonneuve/26022004/33321.shtml
Ainsi, dans le cas, de Chandeler, ce n'était que pour sauver une seul usine et on a perdu tout cet argent pour rien, 1 milliard. Donc, il est vrai que le gouvernement a surement appris de ses leçons et comme dans les derniers communiqués qui parlaient que Québec réfléchissait à une intervention, c'est qu'il veut être certain qu'Abitibibowater aura atteint sa maturité dans sa restructuration avant de faire quoi que ce soit. Il n'y a rien de garantie que Québec investira. Cependant par la SGF, ils ont la capacité de le faire et dans le communiqué, le ministre Gignac dit qu'ils y réfléchissent.
Surement, que mettre 1 milliard dans Abitibibowater maintenant pour sauvegarder 23 usines qui tourne encore, serait beaucoup mieux que le milliard perdu dans la Gaspésia pour relancer un seul moulin pour aider l'économie de la Gaspésie.
Gignac did not say how the Government may invest in AbitibiBowater. It has used Investissement Québec, the Société générale de financement and the Caisse de dépôt et placement to shore up struggling Quebec industries in the past.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=51715204
Voici une petite apperçu du mandat de la SGF, pour nos lecteurs.
Le Mandat de la SGF.
La mission de la SGF est d’investir dans des sociétés québécoises dans le but de stimuler le développement de l’économie de la province. Actuellement, la société d’État possède des participations dans une cinquantaine d’entreprises qui se trouvent dans cinq secteurs d’activité dont l’agroalimentaire, les mines, les produits forestiers ainsi que les secteurs des sciences de la vie et des technologies.
L’organisation possède entre autres 18% d’Olymel, 13% de l’aluminerie Alouette, 49% de Kruger Wayagamack et 38,5% d’Alliance Film.
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Translation english
Quebec has no direct money? Maybe! But indirectly by the FMS, it can do what. SGF is the financial arm of government of which he has control and whose mandate and budgets are colossal. As such, they have already controlled Donohue, Rexfor, Quebec Cartier Mining sold Acelor Mital. There Caisse de Depot et Placement du Quebec, but it has lost 40 billionaire in the last crash.
Finally, if the government intends to invest in AbitibiBowater, it would logically SGF which controls the mandate and thus avoid political criticism. Let us recall the case of the revival of Gaspésia that Abi was a factory had closed. Quebec wanted to restart with Tembec and the project has turned to failure and Quebec by the FMS has lost close to $ 1 billion.
Gignac did not say how the Government may invest in AbitibiBowater. It has used Investissement Québec, the Société générale de financement and the Caisse de dépôt et placement to shore up struggling Quebec industries in the past.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=51715204
Thus, in the case of candles, it was only to save a single plant, and we lost all that money for nothing, 1 billion. So it is true that the government has certainly learned its lessons and as in previous releases that Quebec was thinking who spoke to an intervention, because he wants to be sure that AbitibiBowater has reached its maturity in its restructuring before do anything. There is no guarantee that Quebec will invest. However by SGF, they have the ability to do so and in the press, the Minister said Gignac think about.
Surely, that putting $ 1 billion in AbitibiBowater now to save 23 factories running again would be much better than the billion lost in Gaspésia to revive one mill to help the economy of the Gaspé.
Here is a small preview of office of the SGF, for our readers.
The Mandate of the FMS.
The mission of SGF is to invest in Quebec companies in order to stimulate the economy of the province. Currently, the Crown corporation has interests in fifty companies that are in five sectors including food processing, mining, forest products and sectors of life sciences and technology.
The organization has among other Olymel 18%, 13% of the Alouette smelter, 49% of Kruger Wayagamack and 38.5% of Alliance Films.
Actually, we went to the stage of investisseemts. If the government is ready, Abitibi Announces Call by July 15. We'll see what the government will?? The coming of Richard garneau is surely a step in this direction, hopefully.
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Old news, but seems appropriate for this round of funding.
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Quebec mulls investment in wilting AbitibiBowater
By Robert Gibbens, The Gazette November 2, 2009 Be the first to post a comment
* Story
* Photos ( 1 )
Headquarters of Montreal-based pulp and paper giant AbitibiBowater Inc.
Headquarters of Montreal-based pulp and paper giant AbitibiBowater Inc.
Photograph by: Tyrel Featherstone, The Gazette
MONTREAL – Quebec could invest directly in struggling AbitibiBowater Inc., the Montreal-based forestry giant that ranks as the world’s largest newsprint producer, Clément Gignac, Quebec’s new economic development minister, said yesterday.
But he told a Montreal news conference he would consider such an investment only if the company and its unions are ready to make “sacrifices” and cut costs by $50 to $75 U.S. a tonne to widen margins and improve competitiveness in North America and overseas.
That would be a big target. Newsprint now sells at $480 U.S. per tonne, an all-time low after inflation. Consumption by U.S. dailies was down 25 per cent from a year earlier in the April-September period as circulation and advertising took a heavy blow from the recession and the Internet’s rise.
“We have no comment on the Minister’s statement,” said company spokesman Pierre Choquette. “We continue to collaborate with governments at all levels as we work through our restructuring.”
Quebec has been watching the restructuring closely since the company went into court protection from creditors in Canada and the U.S. last April. It has paper and lumber mills in Quebec, the Atlantic Provinces and Ontario as well as the United States.
In Quebec it produces newsprint and commercial printing papers in eight mills from Amos, Kenogami and Alma in the Northwest to Gatineau, near Ottawa, and Clermont and Beaupré, near Quebec City.
The Communications, Energy and Paperworkers Union last week urged the federal and provincial governments to step up and deal with pension and other urgent restructuring issues.
The company has closed down more than one million tonnes of capacity in North America in the past 18 months and more mills have to be shut because of shrinking demand – despite some gains in overseas markets.
When Abitibi-Consolidated merged with Bowater in 2007, the combined company had total annual newsprint and commercial printing paper capacity in North America, Europe and Korea totalling well over 7 million tonnes.
Gignac did not say how the Government may invest in AbitibiBowater. It has used Investissement Québec, the Société générale de financement and the Caisse de dépôt et placement to shore up struggling Quebec industries in the past.
The government recently formed a group with the industry to find ways to reduce input costs. The industry says energy costs have dropped from the mid-2008 peaks, but wood fibre costs continue to increase rapidly.
Gignac said aid would be confined to AbitibiBowater’s Quebec assets and won’t contravene the Canada-U.S. Softwood Lumber Pact. The company has tried to unload its sawmills several times without success.
“The Quebec government has already helped the company through various programs though taking an equity interest now would set a dangerous precedent and lead to pressure for more help from other Quebec producers,” said one veteran industry analyst who did not wish to be named.
“But the unions are powerful in Quebec and politics are in play. ... Some form of direct investment is quite possible.”
http://www.montrealgazette.com/business/Quebec+mulls+investment+wilting+AbitibiBowater/2173663/story.html