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I believe that when this deal will materialize, AbitibiBowater, will be a big strong player. Our shares will be recognized with the importance of all assets of AbitibiBowater now profitable. The company will now have to work for shareholders, I hope.
Translation of this important paragraph which refers to negotiate with government law.
At this chapter, the federation is continuing discussions with government and AbitibiBowater to cut the deficit in the pension fund and the establishment of a new regime.
http://www.cnw.ca/fr/releases/archive/March2010/13/c9688.html
Tuesday or Wednesday, I think
Interesting reading.
http://www.distressed-debt-investing.com/
It's sublime, I just finished reading, It is very explicit and detailed. Really very proffessional. Thank you!!!!
No. I am informed lately and it seems not quite knowing what will happen with a BK. It have no value? Unless, they play at MM and the accumulate, strange.
No. I'm still at work. but I hope that if the regulation is positive, I'm probably at my retirement very soon.
Yes Ergo. I feel that the pension problem will be resolved soon after the parliamentary session of the federal government.
Publié le 02 mars 2010 à 21h08 | Mis à jour le 02 mars 2010 à 21h11
Renouvellement des conventions collectives
AbitibiBowater et les syndicats restent discrets
François Pierre Dufault
Le Droit
Très peu de détails ont transpiré des premières discussions, hier, entre les syndicats affiliés à la Fédération des travailleuses et des travailleurs du papier et de la forêt (FTPF-CSN) et AbitibiBowater en vue du renouvellement des conventions collectives.
Les syndicats se disent conscients que le renouvellement des conventions collectives est une condition essentielle à l'émergence de la papetière qui s'est placée sous la protection de la Loi des arrangements avec les créanciers, l'an dernier.
Aussi, ils s'attendent à ce que l'employeur leur demande de nouvelles concessions.
« C'est certain qu'il ne s'agit pas du meilleur contexte pour négocier de nouvelles ententes avec l'entreprise », a reconnu Louis-Serge Houle, porte-parole de la FTPF-CSN. L'entreprise accuse une dette estimée à près de 8 milliards $.
Emplois et pensions
L'objectif des syndicats demeure d'éviter la faillite de la papetière, tout en préservant le plus d'emplois et le moins de pertes au regard du régime de retraite.
Hier, AbitibiBowater s'est engagée à ne pas toucher aux régimes de retraite de ses anciens employés si elle parvient à se sortir du pétrin. Cet engagement serait toutefois conditionnel à l'acceptation, par les gouvernements, d'un plan d'étalement des paiements des prestations de retraite.
Les conventions des employés d'AbitibiBowater viennent à échéance le 31 mars prochain
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Translation of sentence in BOLD
Yesterday, AbitibiBowater has agreed not to touch the pensions of former employees if it manages to get out of trouble. This commitment is however conditional upon acceptance by governments, a plan of deferral of payments of retirement benefits
http://netnewsledger.com/index.php?option=com_content&view=article&id=1631:pension-benefits-bill-qnational-strategy-neededq-mauro&catid=38:politics-now&Itemid=89
Pension Benefits Bill - "National Strategy Needed"
Last Updated on Thursday, 04 March 2010 10:02 Thursday, 04 March 2010 10:02
Written by NNL Staff
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QUEEN'S PARK - Thunder Bay Atikokan MPP Bill Mauro participated in debate at Queen's Park. Bill 236, An Act to amend the Pension Benefits Act is currently before the Ontario Legislature moving toward completion of second reading. The complete debate, which is online at the Queen's Park website, offers some interesting commentary from all sides of the debate.
Here are the comments made during the debate by Mr. Mauro:
"I'm pleased to have a couple of minutes on what is obviously a very important issue that has seized all members of the Legislature. I'm happy to have a couple of minutes on it.
"I must say, I do remember very clearly some time ago when the Premier first began to speak on this issue. He talked very clearly about the fact that he felt there needed to be a national strategy developed when it came to pension and pension reform in this country. It wasn't suggesting for a second that here in Ontario we stop doing the work that we needed to do, but he did speak very clearly about how we needed a national strategy.
""I thought it was interesting, when the member of the third party spoke in the last two-minute round, she spent a bit of time bemoaning the fact that things are not better on pension issues in the province of Ontario, which we all agree with, and that's fine, but she offered as a solution France, which, of course, is a country. So here we were criticizing what's going on in Ontario-and we all believe that more needs to be done to make it better-but there was the country of France, which has a national plan, apparently, offered as an example of an opportunity for improvement. I'm happy to hear that, and it sounds like there is support for the idea that we need a broader, macro view of what we need to do in this country.
"Bill 236, as you've heard, is just a start. The finance minister has been very clear. As a result of the Arthurs report, we're implementing some of his recommendations, but there is more legislation that will come on this issue.
"We also, of course, need to be very mindful that there are two thirds of people in this province who do not have access to a pension plan. We need to be cognizant of their concerns when it comes to this work. But I must say, I've heard others in the Legislature today talking about Nortel, and I will tell you that in my riding of Thunder Bay-Atikokan there is a significant number of AbitibiBowater pensioners who find themselves in a similar circumstance, and as a government, we're working to see what it is we can do on their behalf.
"I know that the federal government has been drawn into this discussion as well. The province of Quebec is engaged, and we're working very diligently to see what we can do for those AbitibiBowater pensioners, not only in northwestern Ontario but in Quebec and southern Ontario as well".
Super nice work. A thousand times thank you. I wish the best for all your efforts.
IT's a very great news guys to sharehoders. I like this sentence;
It is our obligation to defend the interests of our shareholders and ensure we receive compensation for the fair market value of the expropriated assets, plus additional damages.
Humm! A group of lenders may want to seize some assets of the company. This could explain the shortnaked?
AbitibiBowater's creditors reserved the right to attack lender liens if they feel there is reason to remove some assets from the grip of the banks.
http://blogs.wsj.com/bankruptcy/2010/02/05/the-daily-docket-citadel-files-exit-plan/
AbitibiBowater Plans To Exit Bankruptcy By Middle Of Year
Peg Brickley
| 04 February 2010
After nine months of cost-cutting under the protection of U.S. and Canadian courts, AbitibiBowater Inc. has stacked up the cash and is ramping up to exit bankruptcy by the middle of the year, company spokesman Seth Kursman said Thursday.
The newsprint producer plans to file its Chapter 11 plan in the U.S. and scheme of arrangement in Canada "before the end of the first quarter," Kursman said in an interview.
Once the reorganization strategy is rolled out, AbitibiBowater has to line up creditor votes and win court approval to emerge from creditor protection. The company plans to spend the second quarter accomplishing those goals, Kursman said.
The Canadian company was $7 billion in debt and had only $56 million in cash in April 2009, when it launched its bid for survival in the recession. By the end of 2009, the cash level had risen to $466 million, court documents show.
"We believe that now the company has a viable liquidity position," Kursman said. AbitibiBowater will be looking for exit financing to fund its emergence, he said.
Sales of a stake in a power company, timberland and recycling facility contributed to the cash improvement, as did layoffs and plant closures.
As it enters the final stretch, AbitibiBowater is in talks with unions about contracts and pension liabilities, while it negotiates with creditors over the shape its restructuring will take.
The official committee representing unsecured creditors on Wednesday staked a claim on a series of AbitibiBowater affiliates that pledged guarantees on a $400 million term loan.
In a filing with the U.S. Bankruptcy Court in Wilmington, Del., lawyers for unsecured creditors sought permission to formally challenge Wells Fargo & Co. as agent for the lenders over the validity of liens attached to the units, including Abitibi-Consolidated Corp. and Donohue Corp. As in most bankruptcy cases, AbitibiBowater's creditors reserved the right to attack lender liens if they feel there is reason to remove some assets from the grip of the banks.
Wednesday's filing claims the company's units were in no financial shape to be guaranteeing the AbitibiBowater's loans, so the liens should be dissolved.
Creditors need court authority to initiate action against Wells Fargo. They will seek it at a hearing in March.
AbitibiBowater, of Montreal, is dealing with debt picked up in a 2007 merger.
Document DJFDBR0020100204e624000gp
(c) 2010 Dow Jones & Company, Inc.
Short-Naked, i find this sit that talk 1,000 Companies Attacked -> 1,200,000 Jobs Destroyed. The SEC does provide this information, perhaps unintentionally. For example:
Symbol Security
XXX Description
------ --------------------------
ABH AbitibiBowater Inc
ACF AmeriCredit Corp.
AFN Alesco Financial Inc.
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http://www.dailykos.com/story/2009/10/2/789055/-1,000-Companies-Attacked1,200,000-Jobs-Destroyed
Third Avenue Management.
An other information that can be interesting. Could be dealing ........?????
lun., juil. 16, 2007
4:45 PM Third Avenue Management Opposes the Proposed Abitibi-Consolidated Merger with Bowater Incorporated
I like this case. Another thought, if this naked short was a competitor company that would acquire the company not cheap. I think that management would have made a complaint to the SEC, or is on the board to do so. If no?????????
A suggestion for the counting of shares.
If we are victims of (short naked). There is an entity implied. The story is to know, WHO, is behind this manipulation. Thus, it would be logical to contact the company directly to see if they are interested in this report because, if they are not in the game, they are victims as much as us. Then, we may have their aid directly. That is to say, it could quickly send a statement to each of their factories, specifying that all holders of shares, ABH ABWTQ.... suffer (short naked) and to allow rapid investigation by the SEC, we you asking (all employees of holders) of its shares provided with the company to publicize their name, address, and the number of shares held by them, to allow an evaluation rapidly of counting. Subsequently communicated to you so you can complete your report
Such assistance would be valuable because, i doubt that there is a large number of shares held by employees.
Very grateful for this BIG rapport. Big questions to ask the management and the sec.
I believe too. Also, if you look at its website the intentions of the company are clearly defined , the company is working honestly for respect for its shareholders.
==============================================================
RESTRUCTURING is the best option for continuing our operations in a process that will allow us to both restructure for the long term and ensure fair and equitable treatment for our stakeholders.
==============================================================
http://www.abitibibowater.com/home.aspx
He is.
Fairfax holds two AbitibiBowater board seats.
http://uk.reuters.com/article/idUKN1734999020090417
Hr is.
Fairfax holds two AbitibiBowater board seats.
http://uk.reuters.com/article/idUKN1734999020090417
I beleave that Faifax is on the board of ABITIBIBOWATER and i love his philosophy. He hates the shorts seller and he will do everything to keep intact our shares.
Here a sample of the interview targeting his battle with short seller.
Q: What’s the latest with the short selling attack mounted a couple of years ago against Fairfax by several hedge funds in the U.S.?
A: “In July 2006, we sued these funds. They have attempted to have our case dismissed, but we have won in court against these motions to dismiss, and appeals. We face just one more dismissal attempt by a fund in August. Then it will be a trial. One defendant has been indicted on fraud charges.”
Read more: http://network.nationalpost.com/np/blogs/francis/archive/2008/07/28/prem-watsa-fairfax-financial-s-homer.aspx#ixzz0fZ5vxmJP
The Financial Post is now on Facebook. Join our fan community today.
http://network.nationalpost.com/np/blogs/francis/archive/2008/07/28/prem-watsa-fairfax-financial-s-homer.aspx
The profit potential will be enormous after the restructuring. At the end of 2008 it included a paper price of $ 816.00 US per tonne for a successful merger. The merger was reduced administration costs of $ 270,000 million per year. However, the crisis occurs, prices are collapsing under $ 500 U.S. per tonne and the company seeks protection of the bankruptcy law to continue its restructuring. It closed unprofitable plants, broken contracts and conducts loss on sale of assets. The important thing is to master the market to supply and demand, and AbitibiBowater will be able to adjust's from a market price for its healthy profitability from 2008 to the reality of 2010. Thus, today announced significant cuts that are ongoing negotiations between the bottom board and other additional cuts at its headquarters for $ 150,00,000 million. Consequently, even with production reduced to approximately at 4 million tonnes of newsprint, which could generate big gains if its profit margin is between 10 to 15% may be at a price much lower than in 2008, between $ 500.00 and $ 600.00 the ton. The important thing is to make profits and we are well on the road with good management.
Thank you very much at all, you made a great job, ergodoc, dav1234.....
Our actions will emerge intact from this restructuring. The crooks will leave soon of the board.
It'is very interesting to look at the site of Abitibi. insert-text-here It targets a stronger company for more value to their shareholders. A little lower, we refer to the quote symbol of the shares, that is ABWTQ. Definitely, this means, that it'is not the intention of the company to delisted his shares. Also if you compare the site of Smurfit-Stone Container, there, is no reference to their shareholders and quote symbol. insert-text-here
Here is an excerpt from the old Globe article. This inspires confidence that Fairfax will do everything to keep his actions
Fairfax and Seattle hedge fund Steelhead Partners were among eight shareholders that stepped up to buy $400-million in convertible notes from debt-heavy Level 3 Communications, a U.S.-based fibre optic player. The notes, predictably, pay annual interest of 15 per cent. Steelhead, it turns out, has just emerged as Abitibi's biggest shareholder, with a 14.8-per-cent stake.
Is it just a coincidence that Steelhead and Fairfax have seen something (we're not sure it's value) in Abitibi that no else sees? Mr. Watsa may have found a kindred soul.
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MANUFACTURING: ANALYSIS
Fairfax adds to the intrigue at Abitibi
Fairfax CEO Watsa decides to pump an extra $80-million into debt-ridden Abitibi
KONRAD YAKABUSKI
E-mail Konrad Yakabuski
| Read Bio
| Latest Columns
February 10, 2009
MONTREAL -- Does Prem Watsa have no mercy?
At first, the move yesterday by Mr. Watsa's Fairfax Financial Holdings Ltd. to pump another $80-million (U.S.) into paper giant AbitibiBowater Inc. looks like a kindly, if curious, gesture.
Abitibi, already crippled by annual interest payments of almost $700-million, admitted in U.S. regulatory documents filed yesterday that it is facing "severe liquidity constraints." It said its plan to sell its hydro assets may go awry. Its penny stock faces delisting. Demand for its newsprint has "weakened significantly" and the decline "could accelerate" in 2009.
Montreal-based Abitibi, which has $6-billion in debt to pay back, announced yesterday that a "private institutional investor" has agreed to purchase $80-million of first lien notes issued by a new Abitibi unit called Bowater Finance.
Print Edition - Section Front
Enlarge Image
An Abitibi spokesman wouldn't name the buyer and Fairfax didn't return calls. But Fairfax is clearly identified as the purchaser in a filing made yesterday with the U.S. Securities and Exchange Commission.
It seems a strange enough move for Fairfax. The $350-million investment it made in Abitibi less than a year ago, when the company was in straits almost as dire, has not exactly gone as planned.
The notes are unsecured and convertible into Abitibi stock at a price of $10 a share. That's 14 times what Abitibi's shares were worth yesterday. The company's total market capitalization is below $50-million, compared with more than $700-million when Fairfax bought the notes.
We've come to expect these kind of counterintuitive bets from Mr. Watsa. But we've also come to know better than to question them. Mr. Watsa, Fairfax's chairman and chief executive officer, has a reputation for spotting pearls (and pitfalls) that almost everyone else misses.
One of them is the subprime meltdown.
And those $350-million in convertible Abitibi notes Fairfax bought last year are more than meets the eye. The notes bear an 8-per-cent interest rate.
But Abitibi has paid the interest not in cash, but by issuing additional debt to Fairfax. The payment-in-kind arrangement means the effective interest rate on the notes is 18.5 per cent.
If this in itself doesn't explain why Mr. Watsa would take on yet more Abitibi risk, maybe the fact that Abitibi will be paying interest on the new $80-million secured notes at a punishing annual rate of 15.5 per cent does.
Fat yields for Fairfax. But can Abitibi call this progress? If the proposed restructuring announced yesterday of $1.8-billion in debt at the company's Bowater operating unit is accepted by bondholders, AbitibiBowater's total annual interest bill will be going up, not down.
How does a company with "severe liquidity constraints" consider this a step forward?
The planned restructuring is dizzyingly complex. But in essence it would move $555-million in debt off the balance sheet of the Bowater operating unit - a part of the company that actually makes something - by swapping current unsecured debt for new secured debt paying higher interest.
The out-of-court restructuring would allow Abitibi to jump one hurdle in what has become an obstacle course worthy of American Gladiators.
But it would still leave the company facing a March deadline to repay a $347-million term loan at its Abitibi-Consolidated unit. (Did we mention that this company needs to simplify its labyrinthine structure?) The debt exchange would by no means save the company.
A few weeks ago, Fairfax and Seattle hedge fund Steelhead Partners were among eight shareholders that stepped up to buy $400-million in convertible notes from debt-heavy Level 3 Communications, a U.S.-based fibre optic player. The notes, predictably, pay annual interest of 15 per cent.
Steelhead, it turns out, has just emerged as Abitibi's biggest shareholder, with a 14.8-per-cent stake.
Is it just a coincidence that Steelhead and Fairfax have seen something (we're not sure it's value) in Abitibi that no else sees? Mr. Watsa may have found a kindred soul.
ABITIBIBOWATER (ABH)
Close: 88¢, down 11¢
If the court does not recognize the old shares, it encourages the shorts thief of capitalist system. At zero value in the old shares, they have made billions, and after, to reinvest in the new issue. They will laugh at death. Good luck.
This was not a split, you're right, I was referring to the merger.
Soory, your rihgt, i did not linger at the precise dates, but the important thing is that I called after bankrupcy.
I do not remember her name but she was a girl and it was in February 2009, at the head office in Montreal, when I was anxious to know what we would do with our actions. His answer was that we were traded on the OTC and it was a ridiculous price and the price was better to keep them and wait for the end of restructuring.
I contacted 1 month or 2 after that and she was less aware of what was happening because information security was sour and supervision of the Law on Protection faillittes.
Nonetheless, there, Abitibi had already restructured its shares by dividing by ten, and with so few shares outstanding would be very logical and fair to keep them if the company is a winner of this process.
I have already spoken to the IR, of what would happen with ABWTQ. She told me to keep them at that price I gave them and wait until the restructuring is completed and it was only a temporary but necessary step and that the company would be much stronger.
HI! I'm new here. I read with great interest because I have shares for many years. I lose a fortune.
However, I still believe in the company and especially if it goes through restructuring. Does that it abide his shareholders? Thus, we have seen divide our shares by 10 from $ 40.00 to 0.10 and now I had the courage to try to reduce my costs. It's risky but I have it and I still believe in management. Furthermore, I believe that pension funds have also $ 5 million shares ABWTQ. So, logically, as they are in negotiations to dealer to work positive conclusion with the company and the government, and, if we come to a positive conclusion, i think that the company and its employees out intact from the crisis and bankruptcy, that it's normal for the judge and the company protects the existing shares.
At a call, I was already informed that it was not intent for the company to delisted shares, at least a total bankruptcy.
I hope too, and thank you for the good post.