AbitibiBowater granted two-week extension of DIP loan maturity

By Caroline Salls

Pittsburgh, April 14 - AbitibiBowater Inc. received court approval of a two-week extension of the maturity date on its debtor-in-possession financing, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said the DIP loan was previously scheduled to mature on April 21.

AbitibiBowater said the credit agreement provided for an automatic three-month extension if it files a plan of reorganization by that maturity date, but plan negotiations are not yet finalized.

As a result, the DIP facility lenders have agreed to extend the maturity date to May 5.

AbitibiBowater, a Montreal-based producer of newsprint, commercial printing papers, market pulp and wood products, filed for bankruptcy on April 16, 2009. Its Chapter 11 case number is 09-11296.

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