AbitibiBowater updates overall restructuring plans



    
    - Evaluating Alternative Restructuring Options with Lenders and Debt
      Holders
    - Bowater's Previously Announced Exchange Offers Expire And Are
      Terminated
    

    ABH (TSX, NYSE)
    US$

    MONTREAL, April 1 /CNW Telbec/ - AbitibiBowater Inc. ("AbitibiBowater")
announced today that the Company is evaluating new restructuring alternatives
and is currently in active discussions with lenders and debt holders of its
Bowater Incorporated subsidiary ("Bowater") to restructure Bowater's debt and
implement alternatives for maintaining adequate liquidity levels. These
developments follow the expiration and termination of Bowater's previously
announced exchange offers.
    "We are optimistic that we will be able to work constructively with all
of our lenders, debt holders and other constituencies to successfully
implement an alternative restructuring of our overall debt," stated David J.
Paterson, President and Chief Executive Officer.
    AbitibiBowater and Bowater Finance II LLC, an indirect wholly owned
subsidiary of AbitibiBowater, also announced the expiration and termination of
the previously announced private exchange offers (the "Exchange Offers") and
consent solicitation (the "Consent Solicitation") relating to the following
outstanding indebtedness of Bowater and its subsidiaries: 9.00% Debentures due
2009, Floating Rate Senior Notes due 2010, 7.95% Notes due 2011, 9.50%
Debentures due 2012, 6.50% Notes due 2013 and 9.375% Debentures due 2021
(collectively, the "Notes"). In addition, the concurrent private notes
offering (the "Concurrent Notes Offering") has also expired and terminated.
The Exchange Offers, Consent Solicitation and Concurrent Notes Offering, which
were commenced on February 9, 2009, expired at 11:59 p.m. on March 31, 2009.
    Although the successful completion of the Exchange Offers was a condition
to the completion of the previously announced $2.4 billion recapitalization
effort being undertaken by AbitibiBowater's Abitibi-Consolidated Inc.
subsidiary ("Abitibi") under the Canada Business Corporations Act ("CBCA"),
AbitibiBowater and Abitibi currently intend to continue the Abitibi
recapitalization under the CBCA process and to amend such process as necessary
to take into account the developments on the Bowater refinancing. As a result,
the previously announced meetings of creditors and anticipated implementation
dates are expected to be postponed to later dates.
    With regard to the expiration and termination of the Exchange Offers,
Consent Solicitation and Concurrent Notes Offering, all previously tendered
Notes will be returned, without expense, to each tendering noteholder's
account at Depository Trust Company or at such other account designated by the
holder. In connection therewith, all consents previously given by holders with
respect to the proposed amendments to the indentures for the Notes will be
deemed withdrawn and canceled and all funds submitted in connection with the
Concurrent Notes Offering will be returned without interest.

    AbitibiBowater produces a wide range of newsprint and commercial printing
papers, market pulp and wood products. It is the eighth largest publicly
traded pulp and paper manufacturer in the world. AbitibiBowater owns or
operates 23 pulp and paper facilities and 30 wood products facilities located
in the United States, Canada, the United Kingdom and South Korea. Marketing
its products in more than 90 countries, AbitibiBowater is also among the
world's largest recyclers of newspapers and magazines, and has third-party
certified 100% of its managed woodlands to sustainable forest management
standards. AbitibiBowater's shares trade under the stock symbol ABH on both
the New York Stock Exchange and the Toronto Stock Exchange.

    Forward-Looking Statements
    --------------------------

    Statements in this press release that are not reported financial results
or other historical information are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. They include,
for example, statements about the Company's restructuring efforts, including
potential changes in Abitibi's CBCA process. Forward-looking statements may be
identified by the use of forward-looking terminology such as the words "will"
and "expect" and other terms with similar meaning indicating possible future
events or potential impact on the business or other stakeholders of the
Company and its subsidiaries. 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 a number of
business risks and uncertainties that could cause actual results to differ
materially. These risks and uncertainties include, but are not limited to, the
condition of the U.S. credit and capital markets generally and worsening
industry conditions.
    Additional factors are detailed from time to time in the Company's
filings with the Securities and Exchange Commission (SEC) and the Canadian
securities regulatory authorities, including those factors contained in the
Company's Annual Report on Form 10-K, as amended, for year ended December 31,
2007 and Current Report on Form 8-K dated February 9, 2009, each under the
caption "Risk Factors." All forward-looking statements in this report are
expressly qualified by information contained in the Company's filings with the
SEC and the Canadian securities regulatory authorities. The Company disclaims
any obligation to update or revise any forward-looking information.




For further information:

For further information: Investors: Duane Owens, Vice President,
Finance, (864) 282-9488; Media: Seth Kursman, Vice President, Communications
and Government Affairs, (514) 394-2398, seth.kursman@abitibibowater.com


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