Abitibi Goes into Receivership, 1932
By 1932 sales had dropped to a fraction of their earlier levels, while the company's C $50 million debt was more than four times what it had been in 1927. This combination could not be sustained long, and on June 1, 1932, Abitibi defaulted on interest payments and was thrown into receivership. For the next 14 years Abitibi was directed by a court-appointed receiver, whose task it was to stabilize the company's finances, pay down the outstanding debts, and return the company to its shareholders at some future date.
