(b)                the receipts and disbursements of the ACI Group and BCFPI for the Reporting Period with a discussion of the variances from the respective forecasts (the "ACI Forecast" and the "BCFPI Forecast") set forth in the Seventeenth Report;

(c)                 the current liquidity and revised cash flow forecasts of the ACI Group and BCFPI for the 13-week period ending January 17, 2010;

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(d)                 an update with respect to certain key performance indicators ("KPIs"); and

(ii)            an update on the claims procedure as described in the fourteenth report of the Monitor dated August  24, 2009 (the "Fourteenth Report").

TERMS OF REFERENCE

13.            In preparing this Twentieth Report, the Monitor has been provided with and, in making comments herein, has relied upon unaudited financial information, the ABH Group's books and records, financial information and projections prepared by the ABH Group and discussions with management of the ABH Group (the " Management ").  The Monitor has not audited, reviewed or otherwise attempted to verify the accuracy or completeness of such information and, accordingly, the Monitor expresses no opinion or other form of assurance in respect of such information contained in this Twentieth Report.  Some of the information referred to in this Twentieth Report consists of forecasts and projections.  An examination or review of the financial forecast and projections, as outlined in the Canadian Institute of Chartered Accountants Handbook, has not been performed.  Future-oriented financial information referred to in this Twentieth Report was prepared by the ABH Group based on Management's estimates and assumptions.  Readers are cautioned that, since these projections are based upon assumptions about future events and conditions, the actual results will vary from the projections, even if the assumptions materialize, and the variations could be significant.

15.            Copies of all of the Monitor's Reports (with the exception of the Eighteenth Report of the Monitor dated October 16, 2009 which was filed under seal until

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such time as this Honourable Court makes a determination as to the extent of disclosure, if any), in both English and French, including a copy of this Twentieth Report, and all motion records and Orders in the CCAA Proceedings will be available on the Monitor's website at www.ey.com/ca/abitibibowater.  The Monitor has also established a bilingual toll-free telephone number that is referenced on the Monitor's website so that parties may contact the Monitor if they have questions with respect to the CCAA Proceedings.

16.            Copies of all of the U.S. Bankruptcy Court's orders are posted on the website for Epiq Bankruptcy Solutions LCC ("Epiq") at http://chapter11.epiqsystems.com/abitibibowater.  The Monitor has included a link to Epiq's website from the Monitor's website.

CURRENT MARKET CONDITIONS IN THE FOREST PRODUCTS INDUSTRY

18.            As indicated in previous reports of the Monitor, the forest products industry continues to face significant challenges with respect to pricing and demand.  A significant contributing factor to these issues is the continuing overcapacity in the newsprint market and ongoing weakness in the U.S. housing market.

19.            Despite weakness in the North American paper market, there have been signs that market demand is stabilizing.  According to a report issued by the Pulp and Paper Products Council on October 22, 2009 (the "PPPC Report"), demand for both uncoated mechanical and printing and writing papers increased in September, 2009.  The PPPC Report notes that while demand is still significantly below previous years it has begun to recover from historically low levels.

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20.            The following chart obtained from RISI.com details movements in the prices of North American newsprint by month since November, 2007.  As noted below, the price of newsprint has recently begun to increase after a sharp decline earlier in 2009.

21.            The ninth report of the Monitor dated July 10, 2009 (the "Ninth Report") noted that Kruger Inc. ("Kruger"), a competitor of the Petitioners, would be indefinitely idling a coated paper mill in Trois-Rivières, Quebec. This mill had two operational paper lines and both were scheduled to be indefinitely idled.  On October 6, 2009 Kruger issued a press release announcing that one paper line will remain open as long as market conditions are favourable.  Kruger also confirmed that the other paper line, in addition to the debarking and groundwood pulp plants, would be idled on October 13, 2009 as previously announced.

22.            On October 19, 2009 Kruger also announced that it will be idling a newsprint mill in Brompton, Quebec from October 30 to November 11, 2009.  The release

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indicated that idling this mill would reduce output by approximately 10,000 tonnes over the duration of the shutdown.

23.            As reported in the Seventeenth Report, the Petitioners had announced certain production curtailments at a number of facilities.  However, as a result of recent increased customer orders, the production curtailments for the following facilities have been changed as follows:

(i)            the paper machine at the ACI Group's Clermont facility will run through the balance of 2009.  It was originally scheduled to be idled on October 31, 2009;

(ii)           the paper machine in Fort Frances will run for an additional four to six weeks; and

(iii)          Bowater Mersey Paper Ltd. ("Mersey") will run at full capacity through 2009.  Mersey was originally scheduled to run at 50% of capacity during the last three months of 2009.

24.            As previously reported to this Honourable Court in the fifteenth report of the Monitor dated September 2, 2009 (the "Fifteenth Report"), the Petitioners announced two $35 per tonne price increases for North American newsprint customers.  The Petitioners have recently announced two further price increases of $25 per tonne for U.S. based newsprint customers.  These increases will occur in November and December, 2009.  The Petitioners have advised the Monitor that White Birch Paper Company, Kruger and Tembec Inc. have all announced similar price increases for November and December, 2009.

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forest biomass in the Canadian forest products sector.  The total possible funding potentially available to BCFPI and the ACI Group is estimated to be approximately $30 million in aggregate, which would be available to offset the cost of future capital expenditures.  

RECEIPTS AND DISBURSEMENTS FROM SEPTEMBER 21, 2009 TO OCTOBER 18, 2009 FOR THE ACI GROUP AND BCFPI

The ACI Group

26.            The table below summarizes the ACI Group's (including DCorp) actual receipts and disbursements for the Reporting Period, which is detailed in Appendix "E" of this Twentieth Report, with a comparison to the ACI Forecast amounts provided in the Seventeenth Report.

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27.            As shown in the table above, the ACI Group's total receipts for the Reporting Period, net of joint venture remittances, were approximately $18.9 million lower than projected in the ACI Forecast. Disbursements were $29.2 million higher than projected in the ACI Forecast and Financing cash flow was $22.2 million greater than projected in the ACI Forecast.  Overall, the ending cash balance and available liquidity were each approximately $26.0 million lower than the ACI Forecast.

Receipts

28.            A breakdown of the receipts for the Reporting Period are outlined in the table below:

29.            The variance analysis has been compiled based on discussions with Management and the following represents the more significant reasons for the variances:

(i)             A/R Collections , inclusive of receipts related to Intercompany A/R Settlements, net Joint Venture Remittances, and Collections on Behalf of Joint Ventures, were approximately $163.0 million during the Reporting Period compared to a forecast amount of $161.4 million resulting in a positive variance of approximately 1%. 

Intercompany A/R Settlements represent payments to the ACI Group from an affiliated ABH Group entity for ACI Group accounts receivable that were collected by the affiliated entity, such as BI or BCFPI.

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(ii)             Collections on Behalf of Joint Ventures totalled approximately $1.6 million during the Reporting Period.  This amount represents amounts collected by the ACI Group for accounts receivable that belong to a joint venture partner .  Such amounts will be paid to the joint venture partner on a monthly basis or in accordance with the joint venture agreement.  The amount of $1.6 million is compared to a forecast amount of $15.5 million and results in a negative variance of approximately $13.9 million. 

This variance is partly due to the fact that certain portions of amounts collected on behalf of joint ventures are also included in the "A/R Collections" line and have not yet been specifically allocated to "Collections on Behalf of Joint Ventures".

During the Reporting Period, net Joint Venture Remittances totalled approximately $16.6 million resulting in a negative variance of $1.2 million.  This is primarily due to the timing of amounts remitted to one of the ACI Group's joint ventures, Donohue Malbaie.

(iii)             Other Inflows , which includes tax refunds and other miscellaneous receipts, totalled $27.4 million during the Reporting Period.  The ACI Forecast included projected receipts of $48.0 million.  The difference is primarily due to a delay in the receipt of certain funds related to the construction of roads in the province of Quebec.  The ACI Forecast had contemplated an amount of $36.0 million in respect of this item would be collected during the Reporting Period.  This amount was collected in the week ended October 25, 2009, which is after the Reporting Period.  This negative timing variance is offset by refunds in respect of silviculture (which represents amounts received for the planting of trees) and amounts received for the sale of wood chips.

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Disbursements

30.            A breakdown of the disbursements related to Net Trade Disbursements for the Reporting Period is outlined below:

31.           The variance analysis with respect to the disbursements for the more significant variances has been compiled based on discussions with Management and the following represents a summary of the reasons for the variances:

(i)             Disbursements related to Trade Payables were approximately $141.8 million during the Reporting Period, which was $43.2 million greater than the ACI Forecast.  Management has advised that the variance is primarily due to the following:

(a)            Capital Expenditures have been included in the actual amount for Trade Payables disbursements until such time as the ACI Group identifies and allocates the disbursements which are capital in nature;

(b)            the ACI Group regularly disburses amounts on behalf of other affiliated entities which are included in Trade Payables (as noted above, the ACI Group was reimbursed by affiliates for approximately $16.2 million of such amounts, detailed on the Intercompany A/P Settlements line, during the Reporting Period).  The quantum of amounts disbursed on behalf of other entities is not known until such time as the Petitioners reconcile their intercompany accounts, which is done on a regular basis; and

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(c)            higher production than contemplated in the ACI Forecast.  The ACI Group produced higher tonnage than the forecast production which has resulted in an increase to costs of approximately $15 million. The cash flow benefit of this increased production will be realized in future months as the ACI Group does not collect from its customers as quickly as it pays its suppliers.

(ii)            As noted above, Capital Expenditures are not tracked on a weekly basis.  The disbursements related to capital disbursements have been included in the Trade Payables disbursement line.  Management has advised the Monitor that capital expenditures for the month of September, 2009 totalled approximately $5.0 million.

32.           The net disbursements related to intercompany collections are detailed in the chart below:

(i)             A/R Collections – Affiliates totalled approximately $10.7 million during the Reporting Period.  As part of its normal Cash Management System, the ACI Group regularly collects accounts receivable on behalf of other ABH Group entities.  As it is not possible to forecast which customers will incorrectly pay the ACI Group on behalf of the other entities, collections on behalf of affiliates are not forecast by the Petitioners.  The funds are paid on a regular basis by the ACI Group to the appropriate ABH Group entity, which payments are reflected in the Intercompany A/R Settlements line of the "Intercompany" section of the cash flow statement.  As discussed in the next section, an amount of approximately $23.3 million was paid out to affiliates during the Reporting Period by the ACI Group to reimburse affiliates for collections made on their behalf by the ACI Group.

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(ii)             The ACI Group does not forecast the disbursement of Intercompany A/R Settlements as it is not possible to predict which customers will pay the incorrect ABH Group entity for accounts receivable.  The corresponding receipt of these amounts collected from affiliate customers is included in the A/R Collections – Affiliates line included in the "Intercompany" section of the cash flow statement.

33.           Disbursements related to "Other" items are summarized in the chart below:

(i)             Marine Freight Payments totalled $6.5 million during the Reporting Period.  This compares to an amount of $5.2 million in the ACI Forecast.  This negative variance is due to higher than forecast shipments to overseas customers who require the use of marine freight.  Management has advised the Monitor that international shipments have been increasing recently and this represents a growth area for newsprint sales.

(ii)             Utility Payments were approximately $5.8 million less than forecast.  Under the agreement the ACI Group has with its various power suppliers, it is required to pay a certain fixed amount on a weekly basis.  The ACI Forecast contemplates that all such payments to utility suppliers will be made; however, based on monthly reconciliations of the relevant invoices and payments, certain payments were not made.  The fixed amounts were determined based on past consumption.  As such, they represent power consumption that is higher than current usage.

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(iii)             Total payments for Payroll & Benefits were $39.7 million during the Reporting Period compared to an amount of approximately $39.3 million in the ACI Forecast. 

Financing

34.           Details regarding the ACI Group's financing activities are summarized in the following table:

35.           The variance analysis with respect to the ACI Group's financing activities has been compiled based on discussions with Management and the following represents a summary of the reasons for the variances:

(i)             Securitization Inflows/(Outflows) totalled an inflow of approximately $20.3 million compared to a projected outflow of approximately $6.1 million during the Reporting Period.  The reason for this variance is a higher than forecast accounts receivable balance and better than forecast accounts receivable mix under the Securitization Program.  Certain excess concentrations, which negatively impact the level of borrowing under the Securitization Program, were reduced during the Reporting Period.  This allowed the ACI Group to increase the liquidity provided by the Securitization Program.

(ii)             Adequate Protection by DCorp to ACCC Term Lenders totalled approximately $3.1 million compared to a forecast amount of $3.4 million.  The reason for the difference is due to the reversal of a prior overpayment of interest in the pre-CCAA period.

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(iii)             Payments for Restructuring & Other Items totalled approximately $4.2 million compared to a forecast of $4.0 million.

(iv)             Amounts on the Foreign Exchange Translation line represent the difference between the actual exchange rate between Canadian and U.S. dollars at the time of conversion as compared to the forecast rate of CDN$1.00=US$0.90.  During the Reporting Period the value of the Canadian dollar fluctuated between US$0.9051 and US$0.9391.

BCFPI

36.           The following table summarizes the receipts and disbursements of BCFPI from September 21, 2009 to October 18, 2009, which is detailed in Appendix "F" of this Twentieth Report:

37.           As detailed in the table above, BCFPI's total receipts for the Reporting Period were approximately $9.6 million lower than the BCFPI Forecast.  Disbursements

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were $0.3 million higher than the BCFPI Forecast and Financing disbursements were $2.3 million greater than forecast.  BCFPI had cash on hand of $7.4 million at October 18, 2009.  Overall, the ending cash balance was $12.2 million lower than the BCFPI Forecast.    

Receipts

38.            A breakdown of the BCFPI receipts are summarized in the table below:

39.           The variance analysis with respect to the receipts has been compiled based on discussions with Management and the following represents a summary of the reasons for the significant variances:

(i)              Total A/R Collections were approximately $50.8 million resulting in a negative variance of approximately $5.4 million.  This variance is primarily due to lower than forecast sales than that contemplated by the BCFPI Forecast.  The BCFPI Forecast included a greater level of activity than actually occurred as operations at certain mills were curtailed after the forecast was issued.

Pursuant to BCFPI's normal practice and the Cash Management System, sales which are made to customers domiciled in the United States are sold through an affiliate, Bowater America Inc. ("BAI").  BAI, which is a subsidiary of BI, collects the accounts receivable from the third party customers and then remits these funds via an Intercompany A/R Settlement to BCFPI.  BCFPI continues to reconcile its intercompany trade receivables on a regular basis.

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In addition to the above, BI collects substantially all accounts receivable related to BCFPI's sale of pulp.  Such amounts are now reconciled and transferred from BI to BCFPI on a monthly basis.  Transfers of pulp receipts through the end of September have been paid to BCFPI.

(ii)             Amounts received related to Other Inflows were approximately $7.5 million during the Reporting Period.  Such receipts primarily represent various tax refunds and deposits made at the mill level.  BCFPI does not typically forecast such amounts.  The BCFPI Forecast had projected an amount of $11.7 million to be received in respect of tax credits for roads built in the province of Quebec. This amount was not received during the Reporting Period.  The revised BCFPI Forecast in Appendix "H" contemplates that these funds will be received in late November, 2009.

Disbursements

40.           Details regarding disbursements related to Net Trade Disbursements are summarized in the following table:

41.           The variance analysis with respect to BCFPI's disbursements has been compiled based on discussions with Management and the following represents a summary of the reasons provided for these variances:

(i)             Disbursements related to Trade Payables were approximately $6.9 million less than projected during the Reporting Period.  The reason for this variance is due to the fact that the BCFPI Forecast contemplated higher production than current operational levels.  The cash flow forecast in

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Appendix "H" reflects lower levels of production than that contemplated by the BCFPI Forecast.

Receipts related to Intercompany A/P Settlements - Receipts were approximately $3.6 million compared to an amount of $8.0 million in the BCFPI Forecast.  Such amounts represent reimbursement for amounts disbursed on behalf of Mersey, which is a joint venture partially owned by BI.  The actual amount transferred was less than forecast due to the fact that only net balances between BCFPI and Mersey are settled.  BCFPI collects a portion of Mersey's accounts receivable and such amounts decrease the amount that is due to be repaid to BCFPI.

(ii)            Intercompany A/P Settlements - Disbursements represent BCFPI reimbursing related entities for payments made on its behalf.  During the Reporting Period, such payments totalled approximately $1.9 million and are primarily reimbursements to the ACI Group for freight costs.

(iii)           Capital Expenditures are not tracked on a weekly basis.  As such, disbursements for this line item have been included in Trade Payables.    The Monitor has been advised that capital expenditures for September, 2009 were approximately $0.4 million.

(iv)          Payments on Behalf of Affiliates were $5.5 million during the Reporting Period.  These payments primarily represent disbursements made by BCFPI on behalf of Mersey.  Due to the integrated nature of the operations of the Petitioners and the Cash Management System, such payments occur on a regular basis.  BCFPI does not typically forecast such payments, nor does it typically forecast the repayment of these items.

42.           Actual receipts and disbursements related to intercompany accounts receivable transactions are summarized in the table below:

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(i)             Receipts related to A/R Collections – Affiliates totalled approximately $5.0 million during the Reporting Period.  Such amounts are regularly collected by BCFPI as part of the operation of the Cash Management System.

(ii)            Payments for Intercompany A/R Settlements totalled approximately $5.5 million during the Reporting Period.  Intercompany A/R Settlements represent payments made by BCFPI to reimburse related entities for accounts receivable incorrectly paid to BCFPI by ABH- affiliated customers.

43.            Disbursements for "Other" items are as follows and are summarized in the table below:

(i)             Disbursements for Freight totalled $2.7 million during the Reporting Period.  This compares to an amount of approximately $5.1 million in the BCFPI Forecast.  This variance is due to the fact that a portion of freight costs incurred by BCFPI are actually paid by the ACI Group.  Such amounts are settled on a regular basis.

(ii)            Amounts related to the Intercompany SG&A Allocation were not settled during the Reporting Period.  Such amounts are now forecast to be paid in the week ended November 8, 2009.

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(iii)            During the Reporting Period, payments in respect of Payroll and Benefits totalled $11.7 million.  The BCFPI Forecast projected disbursements in the amount of $12.2 million. 

Financing

44.           Details regarding financing are summarized in the following table:

45.           Restructuring Costs were greater than forecast due to the timing of receipt of invoices from professional services firms.

46.            Amounts on the Foreign Exchange Translation line represent the difference between the actual exchange rate at the time of conversion between Canadian and U.S. dollars as compared to the forecast rate of CDN$1.00=US$0.90.

CURRENT LIQUIDITY POSITION AND THE 13-WEEK CASH FLOW FORECASTS

47.            Attached as Appendices "G" and "H", respectively, are the updated 13-week cash flow forecasts of the ACI Group (including DCorp) and BCFPI through January 17, 2009.

48.            As at October 18, 2009, the ACI Group had cash on hand of $110.7 million.  In addition to this amount, the undrawn portion of the ACI DIP Facility was $45.2 million.  However, pursuant to the ACI DIP Facility, $12.5 million of this amount must remain undrawn, thereby resulting in net available liquidity under the ACI DIP Facility of $32.7 million.  Accordingly, the total liquidity of the ACI Group

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was $143.3 million ($110.7 million cash plus $32.7 million of the ACI DIP Facility) as at October 18, 2009.

49.            The ACI Group's actual liquidity to October 18, 2009 and forecast liquidity for the 13 weeks ending January 17, 2009 is set forth in Appendix "G" and is summarized in the graph below:

50.            The ACI Group's liquidity at January 17, 2010, which is the end of the 13 week period in the forecast in Appendix "G", is projected to be $129.4 million.  Liquidity at December 20, 2009 in the 13-week forecast in Appendix "G" is approximately $155.2 million, compared to an amount of approximately $111.7 million in the Seventeenth Report.  Better than forecast cash flows under the Securitization Program is the biggest contributor to this increase as opening cash has been positively impacted by recent drawings under this program.

51.            The cash flow forecast contained in Appendix "G" does not contain the impact of the sale of the ACI Group's Lufkin facility as the timing of receipt of proceeds is not yet known.  The quantum of such proceeds is approximately $20 million. 

52.            The ACI Group cash flow forecast included in Appendix "G" does not reflect the repayment of the ACI DIP Facility on December 15, 2009, which is the revised date by which the ACI DIP Facility must be repaid.  The ACI Group has indicated

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that it anticipates that amounts outstanding under the ACI DIP Facility will be repaid with proceeds of the sale of the ACI Group's 60% interest in the Manicouagan Power Company ("MPCo").  The cash flow projections contained Appendix "G" do not reflect this anticipated transaction, nor does it reflect the repayment of the ACI DIP Facility from the proceeds from the sale of ACCC's interest in MPCo.  The ACI DIP facility was extended to December 15, 2009 by Investissement de Quebec ("IQ") and approved by this Honourable Court on October 30, 2009.  Excluded from the cash flow forecast in Appendix "G" was a $1.5 million, in aggregate, extension fee payable to IQ and the Bank of Montreal.  The disposition of proceeds from the sale of MPCo is subject to a motion scheduled by the Petitioners to be heard by this Honourable Court commencing on November 9, 2009.

53.            Actual results since the date of the issuance of the Initial Order and BCFPI's forecast liquidity for the 13 weeks ended January 17, 2010, which includes projected intercompany funding from BI in the amount of $4.0 million, is set forth in Appendix "H" and is summarized in the graph below.  The estimate of liquidity in the following graph assumes that a minimum cash balance of $10.0 million will be maintained and funds are transferred from BI, as necessary, on that basis.

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54.           On August 26, 2009 and September 1, 2009, this Honourable Court and the U.S. Bankruptcy Court, respectively, approved certain agreements between the ACI Group, BCFPI and Smurfit-Stone Container Canada Inc. ("Smurfit") relating to the sale of certain timberlands by Smurfit, which will result in BCFPI receiving net proceeds in the amount of approximately $25.6 million (the "Smurfit Timberland Proceeds").  The Smurfit Timberland Proceeds were paid to the Monitor's trust account in the week ended October 25, 2009 and are to be held in trust by the Monitor pending further order of this Honourable Court.  For purposes of the forecast, the proceeds are reflected as being held in trust by the Monitor and are not used for operating purposes due to the uncertainty regarding the timing of the release of these funds.

55.           BCFPI's liquidity as at January 17, 2010 is projected to be approximately $10.1 million, not including the Smurfit Timberland Proceeds.    

56.           Management has informed the Monitor that BCFPI's forecast cash requirements will be supported by BI through intercompany advances, if necessary.

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57.           The cash flow forecasts in Appendices "G" and "H" reflect the cash flow impact of recently announced mill idlings and the recently announced price increases for newsprint.

KEY PERFORMANCE INDICATORS

58.           As first reported in the Seventh Report the Petitioners track certain key performance indicators in the course of managing their business.  Appendix "I" contains certain key performance indicators which have been updated through September, 2009.

UPDATE ON THE CLAIMS PROCEDURE

59.           As described in the Fourteenth Report and pursuant to an order granted by this Honourable Court on August 26, 2009 (the "Claims Procedure Order"), the Petitioners and the Partnerships initiated a process to call for claims (i) against the Petitioners and Partnerships for claims which arose prior to April 17, 2009 (the "Claims") and (ii) arising as a result of, or in connection with, the repudiation, termination, or restructuring by the Petitioners or Partnerships of any contract, lease or other agreement after April 17, 2009 but on or before August 31, 2009 (the "Subsequent Claims").

60.           As at November 3, 2009 the Monitor had received in 2,152 Canadian Proof of Claim forms filed by claimants.  In addition the Monitor has received approximately 2,500 phone calls with respect to the Claims Procedure.

61.           The procedures for reviewing and determining Claims and Subsequent Claims has not yet been established, but will be established by further Order of this Honourable Court.

All of which is respectfully submitted.

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ERNST & YOUNG INC.
in its capacity as the Court Appointed Monitor
of the Petitioners

Per:        /s/ Alex Morrison

Alex Morrison, CA, CIRP      
Senior Vice President

John Barett, CA, CIRP

Vice President

Todd Ambachtsheer, CA, CIRP      
Vice President

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APPENDIX "A"

ABITIBI PETITIONERS

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APPENDIX "B"

BOWATER PETITIONERS

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APPENDIX "C"

18.6 PETITIONERS

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APPENDIX "D"

PARTNERSHIPS

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APPENDIX "E"

ACI GROUP ACTUAL RECEIPTS AND DISBURSEMENTS

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    APPENDIX "F"

BCFPI ACTUAL RECEIPTS AND DISBURSEMENTS

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APPENDIX "G"

ACI GROUP CASH FLOW FORECAST