Status: URGENT
The Honorable Kevin J. Carey
c/o Clerk of the Bankruptcy Court
824 North Market Street
3rd Floor
Wilmington, DE 19801
Re: Letter Supporting Denial of Abitibi Bowater’s Ch. 11 2nd Amended Joint Plan of Reorganization OR Letter Supporting Modification of Debtor’s Second Amended Joint Plan of Reorganization
Dear Judge Carey:
As stated in the above subject, this letter is designed to address the Debtor’s Ch. 11 Plan of Reorganization, and the modifications which must be made by the debtor in order for all stakeholders of Abitibi Bowater to be treated justly. As an investor in Abitibi Bowater, I am troubled by the lack of fiduciary responsibility that the debtor’s have expressed any obligation to satisfy. As evidenced with over two years of court proceedings, Abitibi Bowater has not only let their responsibility to shareholders go by the wayside, they have even actively denied any level of participation with shareholders, to the end of not justly including all stakeholders in the reorganization process.
As a result of this, many shareholders are upset. As if it weren’t enough that they have been told their investment WILL BE MADE worthless, it is adding insult to injury for the debtor to have presented their current financial status to indicate a negative value. Abitibi Bowater has presented, to your honor for approval, a plan of reorganization which is being contested across the board, from shareholders to bondholders. I cannot speak clearly for any category of investor other than shareholder, for I am not involved in bond markets, nor am I a creditor directly to the company. (On a side note, I personally am in wonder as to why the U.S. Trustee withdrew their objection?)
However, I am a creditor in another regard: My willingness to participate in the financial markets which function to the end of DISPLAYING FAITH IN A COMPANIES VALUES, MANAGEMENT TEAM, AND BUSINESS PLAN. As an investor in stocks, I have held ABWTQ (AbitibiBowater) since June of 2009. (I have only been investing in financial markets since the late spring of 2009) It was one of the first companies that I chose to buy for my portfolio, and at the time, I deemed it one of the best investment choices I had made. To be sure, after having participated with the Ad Hoc group of Shareholders, I have been afforded the opportunity to read many, many financial statements, legal briefs, and company PRs, which, in this outlined order, have
A) indicated to me that I, as a shareholder, WOULD be treated fairly, and granted my legal status and rights as a stakeholder.
B) displayed an over-all confusion, and indeed an inability, to properly value the company, BY THE COMPANY (ie, ineptitude by ABWTQ management)
C) exemplified performance of bad behavior on the part of an internationally recognized company; a company which was, for many decades, deemed not only an upstanding citizen in the court of International Financial Markets, but one of the best (ie, the Global Community).
The question I put before your honor is not one which should be considered in terms of vitriolic content, nor should it be considered reflective of this investors’ attitude towards US Bankruptcy courts in general. To be true to MY perspective, as well as those held by WELL over 20% of AbitibiBowater’s common stock holders, the question I put before you is thus:
AbitibiBowater has failed to provide more than one valuation for its Global Companies’ value. (In fact, the Disclosure Statement [Pages 30-32] that they DO provide even includes a $1.0 Billion U.S. Dollar error – in the favor of equity!!!) We, as shareholders, paid for the creation of a valuation report, which AbitibiBowater has not even addressed, in addition to countless objections which have gone completely ignored as well. Additionally, because of these two facts, Abitibi Bowater does NOT present to this court a plan which adequately addresses the valuation issues and POTENTIAL LIQUIDATION value of it’s company. Indeed, there is in fact much dispute even over Abitibi Bowater’s INTENTIONS. Specifically, the entire Chaper 11 process was undertaken by Abitibi Bowater management to create a more viable, globally competitive company, while at the same time filling their (managements) own coffers. Can AbitibiBowater’s Second Amended Joint Plan of Reorganization reasonably be approved without satisfying these demands of proper valuation? Indeed, they are demands made by the U.S. Bankruptcy Court systems rules themselves.
The confusion regarding these proceedings is evident….are we talking company, or companies? Does this question have any impact on the aforementioned POR? I believe it does, and reflects issues of consolidation that have been blatantly ignored by virtually all parties of interest. (ie, all creditors and the debtor…or is it debtors?)
It is this investors disposition and therefore belief that AbitibiBowater is attempting to get away with highway robbery of ALL of it’s creditors. This should not be allowed to happen. Even if shareholders receive a disbursement of $0.00, there is absolutely no viable reason why AbitibiBowater’s management team should be compensated to the tune of 8.5% of the reorganized company! While some may argue that management should receive nothing, I personally believe that all shareholders should remain intact upon the companies’ emergence from Ch. 11, with no shareholder receiving more or less than an amount of stake equal to what they currently hold. (This pro rata suggestion could be achieved through a wide variety of means.)
In closing, I would like to thank both Your Honor and this court for the afforded attention that I have been granted by being able to participate in these proceedings. As an investor, I have “cut my teeth” on AbitibiBowater. I have learned many lessons regarding free markets as well as justice. I, as a shareholder and participant, will take this opportunity to include all of my fellow stakeholders within this final thought:
The conduct of business does not stay in the realm of cold and blasé legal issues. Indeed, the conduct of all business should rely on not only sound financial projections, but also upon solid moral and ethical guidelines.
AbitibiBowater has NOT ACTED IN GOOD FAITH with respect to any of these thoughts. The Second Amended Joint Plan of Reorganization should not be approved as presented.
Submitted to His court for consideration upon this 9th day of November, 2010.
Respectfully yours,
Hopefully this will get there in time for review.
AI
