MONTREAL - Troubled forestry giant AbitibiBowater Inc. (TSX:ABH) has been granted bankruptcy protection in both Canada and the U.S.
AbitibiBowater says the U.S. Bankruptcy Court for the District of Delaware has granted the company's request for relief under Chapter 11 of the American bankruptcy code.
The company also says the same protection has been granted by a court in Quebec.
AbitibiBowater said earlier in the week it had no choice but to seek bankruptcy protection because it couldn't get its debt problems under control.
The company also faces other storm clouds as demand for pulp, lumber, newsprint and other paper products takes a hit around the world as a result of the ongoing global recession.
The company has said it intends to continue its daily operations, including payroll and customer obligations, as it deals with a debt load totalling some US$6 billion.
