AbitibiBowater inks pension deal
WILMINGTON, DEL. AbitibiBowater Inc. said it has reached an agreement on pensions with the government of Ontario that will help clear the way for the paper company to exit bankruptcy.
AbitibiBowater, the world’s largest newsprint company, reached a similar agreement with the government of Quebec in September.
Both deals provide that the company will meet pension obligations in full despite “material aggregate solvency deficits.”
The company said it has 20,000 pensioners in Ontario and Quebec.
The company, which filed for bankruptcy in April 2009, also reached a five-year agreement with Ontario over investment levels in regard to pulp and paper operations in the province.