AbitibiBowater Reaches Settlement with Canada for C$130 Million

As part of the settlement agreement AbitibiBowater will waive its legal actions and claims against the Government of Canada under the North American Free Trade Agreement (NAFTA).

"We believe this is an acceptable settlement for our company, stakeholders and creditors, given the set of circumstances faced by the company at this particular time as well as the inherent uncertainty of any judicial process," stated David J. Paterson, President and CEO. "We are now able to move forward and focus on finalizing our restructuring process and plans to emerge from creditor protection in the fall 2010."