Article: ABITIBIBOWATER GOES INTO BANKRUPTCY.

Reeling under an unprecedented decline in demand for its primary product -- newsprint -- AbitibiBowater Inc. last week filed for bankruptcy protection in Delaware and Montreal, gaining it protection in both the country where it is organized and the country where it has most of its employees.

Following the bankruptcy filings on Thursday and Friday, the company announced that it had received court approval for $206 million debtor-in-possession financing in the United States from Fairfax Financial Holdings Ltd., and Avenue Investments LP, aimed mostly at its Bowater subsidiary, and a $C100 million ($US80.6 million) debtor-in-possession from the Quebec government and ...

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