UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): December 15, 2010

 

 

ABITIBIBOWATER INC.

(Exact name of Registrant as Specified in Charter)

 

 

 

Delaware   001-33776   98-0526415

(State or other Jurisdiction of

Incorporation or Organization)

  (Commission File Number)  

(I.R.S. Employer

Identification Number)

 

AbitibiBowater Inc.

1155 Metcalfe Street, Suite 800

Montreal, Quebec, Canada

  H3B 5H2
(Address of principal executive offices)   (Zip Code)

(514) 875-2160

(Registrant’s telephone number, including area code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


ITEM 7.01.   REGULATION FD DISCLOSURE.

AbitibiBowater Inc. (the “Company”) announced on December 9, 2010 (the “emergence date”) that in connection with its and its affiliates’ emergence on that date from creditor protection proceedings under chapter 11 of the U.S. Bankruptcy Code and the Companies’ Creditors Arrangement Act (Canada), as applicable, which we refer to collectively as the “creditor protection proceedings”, it would make certain initial distributions to unsecured creditors in the form of new shares of Company common stock on account of allowed or accepted creditor claims on or about December 17, 2010, which we refer to as the “initial distribution date”, or “IDD”. Accordingly, the Company wishes to furnish certain information relating to the Company and the distribution that has not been publicly disclosed. In this current report, we refer to the chapter 11 debtors’ Second Amended Joint Plan of Reorganization under Chapter 11 of the Bankruptcy Code and the CCAA debtors’ CCAA Second Amended and Restated Plan of Reorganization and Compromise, in each case as amended and including all exhibits and supplements thereto, together as the “plans of reorganization”, and individually as the “chapter 11 plan of reorganization” and the “CCAA plan of reorganization”, respectively.

On the emergence date, the Company issued an aggregate of 97,134,954 shares of common stock, par value $0.001 per share, and reserved 9,020,960 shares of common stock for future issuance under the 2010 Long-Term Equity Incentive Plan. The Company expects to distribute on or about December 17, 2010 73,752,881 shares of common stock to the holders of unsecured claims as of the applicable distribution record date under the plans of reorganization on account of allowed unsecured creditor claims, and will hold the remaining 23,382,073 shares of common stock in reserve for the benefit of holders of disputed claims. Supplemental interim distributions of the shares held in reserve will be made by the Company to unsecured creditors in accordance with the terms of the plans of reorganization, as claims are allowed or accepted.

Summary of initial distribution by debtor

 

Chap. 11 debtor

   Allowed
claims as of
the IDD
($1,000)
     Disputed claims
(reserves)
(shares)
     Shares
distributed as of
the IDD
     Total shares available
for distribution
     Number of
shares per
$1,000 allowed
claim as of the
IDD
 

AbitibiBowater Inc.

     387,356         23,521         117,778         141,299         0.304057   

Abitibi-Consolidated Corporation

     2,783         182,491         6,936         189,427         2.492335   

Abitibi-Consolidated Finance LP

     7,972         73,837         190,990         264,827         23.95648   

Abitibi-Consolidated Sales Corporation

     1,431         588,757         3,538         592,295         2.471779   

Alabama River Newsprint Company

     1,576         643         78         721         0.049488   

Augusta Woodlands, LLC

             26                 26           

Bowater Alabama LLC

     6,611         213,263         47,728         260,991         7.219432   

Bowater America Inc.

     127         296,225         1,265         297,490         9.977907   

Bowater Incorporated

     2,401,552         14,068,801         35,891,531         49,960,332         14.945143   

Bowater Newsprint South LLC

     21         141                 141           

Bowater Newsprint South Operations LLC

     6,227         32,096         23,299         55,395         3.741781   

Bowater Nuway Inc.

     52         1,977         30         2,007         0.575321   

Bowater Nuway Mid-States Inc.

     94         3,466         508         3,974         5.403816   

Coosa Pines Golf Club Holdings LLC

             1,521                 1,521           

Donohue Corp.

     67         14,097         90         14,187         1.352662   

Lake Superior Forest Products Inc.

             67                 67           

 

1


The above table does not include the allowed amounts of the claims in respect of the 15.5% Senior Unsecured Notes (or the “exchange notes”). In full satisfaction of those claims, the Company will distribute 7,783,894 shares of common stock pursuant to the chapter 11 plan of reorganization and 4,439,680 shares of common stock pursuant to the CCAA plan of reorganization. The Company is also reserving an additional 1,051,772 shares for disputed claims relating to certain pre-petition supplemental executive retirement plans.

 

Affected Unsecured Creditor Class (as per CCAA plan of
reorganization, which has been previously filed)

   Unsecured
Claims
Accepted as
at the Initial
Distribution
(CDN$000’s)
A
     Unsecured
Claims
Reserve as
at the Initial
Distribution
(CDN$000’s)
B
     Estimated
Unsecured
Claims
Population
Including
Reserves as
at the Initial
Distribution
(CDN$000’s)
C=A+B
           Shares
Distributed
as at the
Initial
Distribution

D
     Shares
Reserved as
at the
Initial
Distribution
E
     Total
Shares to
be Issued
per the
CCAA
Plan
(Schedules
C & D of
the CCAA
Plan)
F=D+E
     Number of
Shares per
$1,000 of
Accepted
Claim to be
Issued on
the Initial
Distribution
Date

D/A
 

ACI Affected Unsecured Creditor Class (note 1)

     3,434,074         780,803         4,214,877             3,583,134         814,695         4,397,829         1.04   

ACCC Affected Unsecured Creditor Class (note 1)

     3,460,412         444,440         3,904,852             18,165,317         2,333,074         20,498,391         5.25   

Saguenay Forest Products Affected Unsecured Creditor Class (note 1)

     5,458         60,119         65,577             495         5,452         5,947         0.09   

BCFPI Affected Unsecured Creditor Class

     349,079         334,490         683,569             3,495,598         3,349,508         6,845,106         10.01   

AbitibiBowater Canada Affected Unsecured Creditor Class

     —           71,925         71,925             —           2         2         —     

Bowater Maritimes Affected Unsecured Creditor Class

     1,322         62,656         63,978             926         43,880         44,806         0.70   

ACNSI Affected Unsecured Creditor Class (note 1)

     —           55,797         55,797                46,882         46,882      

Office Products Affected Unsecured Creditor Class (note 1)

     431         56,369         56,800             15         1,940         1,955         0.03   

Recycling Affected Unsecured Creditor Class (note 1)

     196         55,797         55,993             1         276         277         0.01   

15.5% Senior Unsecured Notes

     371,480         —           371,480             4,439,680         —           4,439,680         11.95   
                                          
                  29,685,166         6,595,709         36,280,875      
                                          

Note 1: Unsecured Claims Accepted as at the initial

distribution date excludes the 15.5% Senior Unsecured Notes (exchange notes)

 

2


Summary of initial distribution by public bond

 

                        Shares of new
common stock
(CUSIP 003687 20 9)
 

ISSUE DESCRIPTION

   Cusip      Trustee or TA    TOTAL
principal
     TOTAL
new stock
     Stock per
$1,000 of
principal
 

7.4% Debentures due 2018

     003924AB3       Computershare
(Montreal)
     100,000,000         795,126         7.951260   

7.5% Debentures due 2028

     003924AC1       Computershare
(Montreal)
     250,000,000         1,988,857         7.955428   

10.50% Senior Notes (Series B)

     102214AB9       Computershare
(Montreal)
     20,400,000         256,876         12.591961   

6.0% Notes due 2013

     003669AC2       Deutsche Bank      350,000,000         2,727,329         7.792369   

7.75% Notes due 2011

     003669AF5       Deutsche Bank      200,000,000         1,568,813         7.844065   

Floating Rate Notes due 2011

     003669AG3       Deutsche Bank      200,000,000         1,556,219         7.781095   

8.375% Senior Notes due 2015

     003669AJ7       Deutsche Bank      450,000,000         3,596,327         7.991838   

7.875% Senior Notes

     003672AA0       Deutsche Bank      7,842,000         251,926         32.125223   

8.5% Senior Unsecured Note due 2029

     003924AD9       Deutsche Bank      250,000,000         1,945,120         7.780480   

8.55% Senior Unsecured Note due 2010

     003924AG2       Deutsche Bank      395,000,000         3,073,608         7.781286   

8.85% Senior Unsecured Note due 2030

     003924AH0       Deutsche Bank      450,000,000         3,503,757         7.786127   

9.0% Debentures

     102183AC4       HSBC      248,092,000         3,777,291         15.225364   

9.375% Debentures

     102183AEO       HSBC      200,000,000         3,073,763         15.368815   

9.50% Debentures

     102183AG5       HSBC      125,000,000         1,956,183         15.649464   

6.50 % Notes

     102183AK6       HSBC      400,000,000         6,098,693         15.246733   

Floating Rate Notes (2010)

     102183AL4       HSBC      234,420,000         3,516,723         15.001804   

7.75% Revenue Bonds

     56041HAA3       HSBC      62,000,000         929,591         14.993403   

7.625% Revenue Bonds

     582359AC9       HSBC      30,000,000         452,011         15.067033   

7.40 % Revenue Bonds (2022)

     582361AA9       HSBC      39,500,000         606,715         15.359873   

7.40 % Revenue Bonds (2010)

     986476AR0       HSBC      3,250,000         49,620         15.267692   

8.0% Convertible Notes

     003687AA8       Law
Debenture
     387,304,167         5,906,078         15.249198   

15.5% Senior Notes

     003669AK4       Wilmington      292,969,000         12,223,574         41.723097   

10.85% Debentures

     05356KAB0       Computershare      125,000         1,303,029         10.424232   

7.95 % Notes

     102175AB2       Wilmington
Trust
     600,000,000         9,264,120         15.440200   

The information contained in this current report is furnished pursuant to Item 7.01 of Form 8–K and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in this report shall not be incorporated by reference into any registration statement or any other document filed pursuant to the Securities Act of 1933, as amended, except as otherwise expressly stated in such filing. By filing this report and furnishing the information contained herein the Company makes no admission as to the materiality of any such information.

 

3


Forward-Looking Statements

Statements in this current report that are not reported financial results or other historical information of the Company are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. They include, for example, statements related to the timing and amount of the expected initial distributions of shares of Company common stock to unsecured creditors in connection with the Company’s emergence from the creditor protection proceedings. Forward-looking statements may be identified by the use of forward-looking terminology such as the words “should,” “would,” “could,” “will,” “may,” “expect,” “believe,” “anticipate,” “attempt” and other terms with similar meaning indicating possible future events or potential impact on our business or the Company’s shareholders.

The reader is cautioned not to place undue reliance on these forward-looking statements, which are not guarantees of future performance. These statements are based on management’s current assumptions, beliefs and expectations, all of which involve risks and uncertainties that could cause actual results to differ materially. The potential risks and uncertainties that could cause the timing or amounts of distributions discussed in this current report to differ materially from those expressed or implied herein include: risks and uncertainties associated with the creditor protection proceedings, including limitations against debtors in connection therewith, the values, if any, that will be assigned to our various pre-petition liabilities and securities and the implementation of the plans of reorganization, as further described in our quarterly report on Form 10-Q filed with the United States Securities and Exchange Commission (“SEC”) on November 15, 2010.

All forward-looking statements in this current report are expressly qualified by the cautionary statements contained or referred to in this section and in our other filings with the SEC and the Canadian securities regulatory authorities. We disclaim any obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

 

4


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

 

ABITIBIBOWATER INC.
By:   /s/ Jacques P. Vachon
Name:   Jacques P. Vachon
Title:  

Senior Vice President, Corporate Affairs

and Chief Legal Officer

Dated: December 15, 2010