AbitibiBowater: court will not reconsider decision on equity committee

By Lisa Kerner

Charlotte, N.C., Aug. 25 - The U.S. Bankruptcy Court for the District of Delaware did not reconsider its Aug. 4 decision denying a request to appoint an equity committee in AbitibiBowater Inc.'s bankruptcy case, according to an attorney close to the case.

As previously reported, AbitibiBowater shareholder Peter I. Shah asked the court to reconsider the July 16 motion of certain investors to appoint the committee.

Shah believes that AbitibiBowater is solvent and owns assets in excess of total outstanding debt, including timber rights. The shareholder owns 138,500 shares and three debt securities with a total face amount of bonds of $55,000.

AbitibiBowater and its official committee of unsecured creditors objected to the motion for appointment of an official equity holders committee.

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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