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Fairfax Funding Proposal to AbitibiBowater


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They are still hard at work.



TORONTO, ONTARIO and SEATTLE, WASHINGTON--(MARKET WIRE)--Apr 2, 2009 -- (Note: All dollar amounts in this press release are expressed in U.S. dollars.)


Fairfax Financial Holdings Limited (Toronto:FFH.TO - News)(NYSE:FFH - News) and Steelhead Partners, LLC, announced today that they are prepared to negotiate to arrange additional funding of at least $50 million to Bowater Incorporated ("Bowater"), a subsidiary of AbitibiBowater Inc., through Bowater's credit facility. If this funding were made available to Bowater, it would provide Bowater with additional liquidity as it continues to evaluate restructuring alternatives and pursue further negotiations with its debtholders to restructure its debt.


The proposal does not constitute a binding commitment to lend or provide any additional funding to Bowater, and there can be no guarantee that any such additional funding will be provided. The funding proposal remains subject to the negotiation of specific terms mutually acceptable to Bowater, Fairfax, Steelhead and the lending syndicate currently participating in Bowater's credit facility and definitive documentation reflecting those terms. Discussions with Bowater are on-going and not definitive in any way.

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"We appreciate Steelhead's and Fairfax's confidence and willingness to support our restructuring initiatives. AbitibiBowater's efforts will now be directed at obtaining support from our banks to bring Steelhead and Fairfax into our lending syndicate," stated William G. Harvey, Senior Vice President and Chief Financial Officer. "We believe the additional funds proposed to be made available by Steelhead and Fairfax would provide us with sufficient short-term liquidity while we continue to address our restructuring of Bowater's debt. The approval from and support of our banks in this process is a crucial step to a successful outcome."




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  • 2 weeks later...

Here's another bit of info.




"The Company has also announced that it has entered into a financing commitment with Fairfax Financial Holdings Limited and Avenue Management LLC for debtor-in-possession (DIP) financing totaling approximately $200 million for certain of its Bowater subsidiaries."

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