Replies to post #21206 on AbitibiBowater, Inc. (fka ABWTQ)

[Joda]

I don't use french as much as I would like so thanks for being kind with my efforts to communicate within. Speaking it is much easier...lol

My concern with the Quebec gov't involvement is really a gamble. There is no way to tell what they will do, or what they political pressure can be placed on it, as the official opposition can create a need for the government to respond.

There was an interesting economic report that came out from the Royal Bank recently
I will post a link to it when not at work.
It basically said that the forestry sector had gotten better recently, was buried within the overall report.

Let's see, I have still not invested and watching from the sidelines...

Thanks,

[Pitt77]

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