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UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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) July 10, 2009 ABITIBIBOWATER INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation) 001-33776 98-0526415 (Commission File Number) (I.R.S. Employer Identification No.) AbitibiBowater Inc. (Address of principal executive offices) (Zip Code) (Registrant’s Telephone Number, Including Area Code) (Former Name or Former Address, if Changed Since Last Report) 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): o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 8.01. OTHER EVENTS. Monthly Operating Report On July 10, 2009, AbitibiBowater Inc. (the “Company”) and certain of its U.S. subsidiaries (collectively, the “U.S. Debtors”) filed the Monthly Operating Report for the Period April 16, 2009 to May 31, 2009 (the “MOR”) with the United States Bankruptcy Court for the District of Delaware (the “U.S. Bankruptcy Court”) (In re: AbitibiBowater Inc., et al.,
Chapter 11, Case No. 09-11296). A copy of the MOR is attached as Exhibit 99.1 to this report and is incorporated by reference herein. The MOR is limited in scope, covers a limited time period, and has been prepared solely for the purpose of the U.S. Debtors’ compliance with the monthly reporting requirements of the U.S. Bankruptcy Court. The financial information in the MOR has not been audited, reviewed or otherwise verified for accuracy or completeness by independent accountants. The financial statements in the MOR are not
intended to be prepared in conformity with U.S. GAAP because they do not include all of the information and footnote disclosures required by U.S. GAAP for complete financial statements, and the information contained in the MOR is not intended to reconcile to the consolidated financial statements of the Company in its Annual Report on Form 10-K for the fiscal year ended December 31, 2008 filed with the Securities and Exchange Commission on April 30, 2009, or with consolidated
financial statements in subsequently filed Quarterly Reports on Form 10-Q. The statement of operations and cash flows presented in the MOR for any interim period are not necessarily indicative of the results that may be expected for a full quarter, full year, or any interim period. Readers are cautioned not to place undue reliance on the MOR. The MOR is in a format required by the U.S. Bankruptcy Court and should not be used for investment purposes. Monitor’s Report On July 10, 2009, Ernst & Young Inc. (“E&Y”), as monitor, filed a report (the “Monitor’s Report”) with the Superior Court of Quebec in Canada (the “Canadian Court”) in connection with the creditor protection proceedings previously instituted by certain wholly-owned subsidiaries of the Company, namely Abitibi-Consolidated Inc. and certain of its
subsidiaries and Bowater Canadian Holdings Incorporated and certain of its subsidiaries (collectively, the “Petitioners”), under the Companies Creditors Arrangement Act. The purpose of the Monitor’s Report is to provide the Canadian Court with a report of the four week cash flow results of the Petitioners for the period from June 1, 2009 to June 28, 2009 as well as to provide details on (i) an update with respect
to the overview of the current market conditions in the forest products industry, (ii) the receipts and disbursements with a discussion of the variances from the respective forecasts, (iii) the current liquidity and revised cash flow forecasts and (iv) an update on certain executory contracts. A copy of the Monitor’s Report is attached as Exhibit 99.2 and is incorporated by reference herein. The Monitor’s Report is limited in scope, covers a limited time period, and has been prepared solely for the purpose of the Petitioners’ compliance with the monthly reporting requirements of the Canadian Court. The financial information in the Monitor’s Report has not been audited, reviewed or otherwise verified for accuracy or completeness by E&Y. Some of the information
referred to in the Monitor’s Report consists of forecasts and projections. 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. The Monitor’s Report is in a format required by the Canadian Court and should not be used for investment purposes. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS. (d) Exhibits. EXHIBIT NO. DESCRIPTION 99.1 Monthly Operating Report for the Period April 16, 2009 to May 31, 2009. 99.2 Ninth Report of the Monitor, dated July 10, 2009. 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 thereunto duly authorized. ABITIBOWATER INC. Dated: July 16, 2009 By: Name: Jacques P. Vachon INDEX OF EXHIBITS EXHIBIT NO. DESCRIPTION 99.1 Monthly Operating Report for the Period April 16, 2009 to May 31, 2009. 99.2 Ninth Report of the Monitor, dated July 10, 2009. EXHIBIT 99.1 UNITED STATES BANKRUPTCY COURT DISTRICT OF DELAWARE In re: Abitibibowater Inc., et al., Chapter 11 Monthly Operating Report For the Period April 16, 2009 to May 31, 2009 REQUIRED DOCUMENTS Form No. Debtors Consolidating Schedule of Receipts and Disbursements MOR-1 Debtors Consolidating Schedule of Operating Receipts and Disbursements MOR-1a Schedule of Cash Disbursements by Debtor Entity MOR-2 Schedule of Debtors Bank Account Book Balances MOR-3 Schedule of Professional Fees Paid MOR-4 Declaration Regarding the Reconciliation of the Debtors Bank Accounts MOR-5 Debtors Consolidating Balance Sheet MOR-6 Debtors Consolidating Statement of Operations MOR-7 Declaration Regarding the Status of Post-Petition Taxes of the Debtors MOR-8 Combined Listing of Post-Petition Aged Accounts Payable MOR-9 Combined Listing of Aged Accounts Receivable MOR-10 Summary of Debtors Post-Petition Inter-Company Receivables and Payables MOR-11 Debtors Questionnaire MOR-12 Supplement to Debtors Questionnaire MOR-12a I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief. /s/ William G. Harvey June 30, 2009 Signature of Authorized Individual* Date Senior Vice President & Print Name of Authorized Individual Title of Authorized Individual *Authorized Individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company. In re: Abitibibowater Inc., et al., NOTES TO THE MONTHLY OPERATING REPORT 1. Background and Basis of Presentation: On April 16, 2009, Abitibibowater, Inc. (“ABI” or the “Company”) and certain of its U.S. and Canadian subsidiaries (collectively, the "Debtor Entities") filed voluntary petitions in the United States Bankruptcy Court for the District of Delaware (the "U.S. Court") seeking
relief under Chapter 11 of the United States Bankruptcy Code (the "Bankruptcy Code"). The following day, April 17, 2009, certain of the Company's Canadian subsidiaries also filed to reorganize (the "Canadian Petition") under the Companies' Creditors Arrangement Act ("CCAA") in the Superior Court of Justice in Canada, Province of Quebec, District of Montreal (the "Canadian Court"). Certain U.S. and Canadian legal entities, as well as some operations, ("Non-Debtor
Affiliates") were not included in the Chapter 11 filings and will continue to operate outside of the Chapter 11 process. The unaudited financial statements included herein include the accounts and results of operations of the U.S. filed debtors. The information contained in this Monthly Operating Report ("MOR") is provided to fulfill the reporting requirements set forth by the Office of the United States Trustee. All information contained herein is unaudited and subject to future adjustment. In accordance with U.S. generally accepted accounting principles (GAAP), the Company has applied American Institute of Certified Public Accountant's Statement of Position ("SOP") 90-7, "Financial Reporting by Entities in Reorganization under the Bankruptcy Code" ("SOP 90-7"), in preparing the financial statements. SOP 90-7 requires that the financial statements, for periods
subsequent to the Chapter 11 filing, distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, certain revenues, expenses (including professional fees), realized gains and losses and provisions for losses that are realized or incurred in the bankruptcy proceedings are recorded in reorganization items on the accompanying unaudited statements of operations. In addition, pre-petition obligations that
may be impacted by the bankruptcy reorganization process have been classified on the unaudited balance sheet at May 31, 2009 as liabilities subject to compromise. These financial statements are not intended to be prepared in conformity with U.S. GAAP, because they do not include all of the information and footnote disclosures required by U.S. GAAP for complete financial statements. The information contained in this MOR (a) has not been audited or reviewed by independent registered public accountants, (b) is limited to the time period
indicated and (c) is not intended to reconcile to the consolidated financial statements filed by the Company in its Annual Report on Form 1O-K for the Year ended December 31, 2008 ("2008 Form 1O-K") filed with the Securities and Exchange Commission ("SEC") on April 30, 2009, or with consolidated financial statements in subsequently filed Quarterly Reports on Form 10-Q. Preparation of the MOR requires management to make estimates and assumptions about future events that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The Company cannot determine future events and their effects with certainty, particularly while the Chapter 11 cases are proceeding. Therefore, the
determination of estimates requires the exercise of judgment based on various assumptions, and other factors such as historical experience, current and expected economic conditions, and in some cases, actuarial calculations. The Company constantly reviews these significant factors and makes adjustments when appropriate. The statement of operations and cash flows presented in the MOR for any interim period are not necessarily indicative of the results that may be expected for a full quarter, full year, or any future interim period. While every effort has been made to assure the accuracy and completeness of this MOR, errors or omissions may have inadvertently occurred and the Company reserves the
right to amend the MOR as necessary. In particular, the Company is in the process of reconciling its pre-petition and post-petition liabilities, as well as its liabilities subject to compromise and not subject to compromise, and such amounts are subject to reclassification and/or adjustment in the future. For the reasons discussed above, the Company cautions readers not to place undue reliance upon information contained in the MOR. For further information, refer to the Company's consolidated financial statements and footnotes included in its 2008 Form 10-K filed with the SEC on April 30, 2009 and other filings with the SEC. 2. DIP Credit Facility: In connection with the commencement of the Chapter 11 proceedings, on April 16, 2009 the Company and certain of its affiliates filed a motion with the U.S. Court seeking approval to enter into a post petition credit agreement (the "DIP Credit Agreement"). On April 17, 2009, the U.S. Court granted interim approval
of the DIP Credit Agreement. Final approval of the DIP Credit Agreement was granted by the U.S. Court on June 4, 2009. The DIP Credit Agreement, as amended, provides for a term loan in the aggregate principal amount of up to USD $360,000,000 (consisting of a USD $166,000,000 for term loan borrowings of the US Borrowers, and a USD $40,000,000 term loan for borrowings of Bowater Canada ( the “Initial Loan”), plus subject to further approval from the Bankruptcy Court only after notice
and a further hearing, an incremental USD $154,000,000 which may be advanced after the date of this order, (the Incremental Facility). The use of proceeds under the DIP Credit Agreement may be used for (a) working capital; (b) other general corporate purposes of the Bowater Debtors; (c) payment of any related transaction costs, fees and expenses; (d) the payment of Adequate Protection Obligations; and (e) the costs of administration of these cases. On April 20th and 21st, the company drew down the
current available amount of the DIP agreement. 3. MOR-1 and MOR-1A: The detail presented in MOR-1 represents the total receipts and disbursements, taken directly from the debtors’ bank statements for the period April 16th, 2009 through May 31st 2009. The beginning and ending balances are also reported directly from the bank statements. Due to the nature of the
debtor’s cash management system, the actual operating receipts and disbursement are captured within the numbers presented. MOR-1A breaks out the typical operating receipts and disbursements. Major categories of disbursements have been listed. The Company continues to refine the process by which items in the “Other” category are identified. These refinements will appear in subsequent month MORs. 4. Significant Accounting Policies: The significant accounting policies are consistent with those listed in the Company's 2008 Form 10-K filed with the SEC on April 30, 2009. 5. Liabilities Subject to Compromise: SOP 90-7 requires prepetition liabilities that are subject to compromise, to be reported at the amounts expected to be allowed, even if they may be settled for lesser amounts. The amounts currently classified as liabilities subject to compromise may be subject to future adjustments, depending on
court actions, further developments with respect to disputed claims, determinations of the secured status of certain claims, the values of any collateral securing such claims, or other events. Certain accounts included in the liabilities subject to compromise may be entitled to administrative expense priority under section 503(b)(9) of the Bankruptcy Code. As of May 31, 2009, the components of liabilities subject to compromise consisted of: Unsecured debt $ 2,889,793,980 Accounts Payable 105,614,151 OPEB & Pension 480,958,322 Liabilities subject to compromise $ 3,476,366,453 Under the Bankruptcy Code, the Debtors generally must assume or reject pre-petition executory contracts, including but not limited to real property leases, subject to the approval of the Bankruptcy Courts and certain other conditions. In this context, "assumption" means that the company agrees to perform its obligations and cure all existing defaults under the contract or lease,
and "rejection" means that it is relieved from its obligations to perform further under the contract or lease, but is subject to a pre-petition claim for damages for the breach thereof subject to certain limitations. Any damages resulting from rejection of executory contracts that are permitted to be recovered under the Bankruptcy Code, will be treated as liabilities subject to compromise unless such claims were secured prior to the Petition Date. Since the Petition Date, the Company has received Court approval to reject a number of leases and other executory contracts of various types. The Company is reviewing all of its executory contracts and unexpired leases to determine which additional contracts and leases it will reject. The Company expects that additional liabilities subject to compromise will arise due to
rejection of executory contracts, including leases, and from the determination of the U.S. Court (or agreement by parties in interest) of allowed claims for contingencies and other disputed amounts. The Company also expects that the assumption of additional executory contracts and unexpired leases will convert certain of the liabilities shown on the accompanying financial statements as subject to compromise to post-petition liabilities. Due to the uncertain nature of many of the
potential claims, the Company cannot project the magnitude of such claims with any degree of certainty. In re: Abitibibowater Inc., et al., Chapter 11 MOR-1 Debtors Consolidating Schedule of Receipts and Disbursements (1) For the period of April 16, 2009 through May 31, 2009 (Dollars in Thousands) All Debtor's AbitibiBowater Inc. AbitibiBowater US Holding LLC Donohue Corp. Abitibi Consolidated Sales Corporation (ACSC) Abitibi- Consolidated Alabama Corporation Alabama River Newsprint Company (ARNC) Abitibi- Consolidated Corporation Augusta Woodlands, LLC Tenex Data Inc. Abitibi- Consolidated Finance LP Grand Totals 09-11296 09-11297 09-11298 09-11299 09-11300 09-11301 09-11302 09-11303 09-11304 09-11305 No Accounts No Accounts No Accounts No Accounts No Accounts Beginning Cash Balance $ 55,793 $ - $ - $ 1 $ 23,145 $ - $ 2,569 $ 134 $ 273 $ - $ - Total Cash Receipts $ 3,111,037 $ - $ - $ - $ 567,269 $ - $ 671 $ 2,901 $ - $ - $ - Total Cash Disbursements $ (2,825,966) $ - $ - $ - $ (577,421) $ - $ (1,254) $ (2,567) $ - $ - $ - Ending Cash Balance $ 340,865 $ - $ - $ 1 $ 12,993 $ - $ 1,986 $ 469 $ 273 $ - $ - Bowater Newsprint South LLC Bowater Newsprint South Operations LLC Bowater Finance II, LLC Bowater Alabama LLC Coosa Pines Golf Club, LLC Bowater Incorporated Catawba Property Holdings LLC Bowater Finance Company Inc. Bowater South American Holdings, Inc. Bowater America Inc. (BAI) Lake Superior Forest Products Inc. 09-11306 09-11307 09-11308 09-11309 09-11310 09-11311 09-11312 09-11314 09-11315 09-11316 09-11317 No Accounts No Accounts No Accounts No Accounts No Accounts Beginning Cash Balance $ 1 $ 4 $ - $ 230 $ - $ 12,866 $ - $ 3 $ - $ - $ 2 Total Cash Receipts $ - $ 58 $ - $ 340 $ - $ 2,306,573 $ - $ - $ - $ - $ 56 Total Cash Disbursements $ (0) $ (61) $ - $ (500) $ - $ (2,046,787) $ - $ (0) $ - $ - $ - Ending Cash Balance $ 1 $ 1 $ - $ 71 $ - $ 272,652 $ - $ 1 $ - $ - $ 58 In re: Abitibibowater Inc., et al., Chapter 11 MOR-1 (Continued) Debtors Consolidating Schedule of Receipts and Disbursements (1) For the period of April 16, 2009 through May 31, 2009 (Dollars in Thousands) Bowater Canada Finance Corporation Bowater Canadian Holdings Incorporated AbitibiBowater Canada Inc. Bowater Canadian Forest Products Inc. Bowater Maritimes Inc. Bowater LaHave Corporation Bowater Canadian Limited Bowater Nuway Inc. Bowater Nuway Mid- States Inc. Bowater Ventures Inc. AbitibiBowater US Holding 1 Corp 09-11319 09-11320 09-11321 09-11322 09-11324 09-11325 09-11326 09-11328 09-11329 09-11330 09-11331 No Accounts No Accounts Beginning Cash Balance $ 2 $ 3 $ 2 $ 15,348 $ 522 $ 46 $ 643 $ 1 $ - $ 1 $ - Total Cash Receipts $ 15,003 $ - $ - $ 217,182 $ 917 $ - $ 66 $ - $ - $ - $ - Total Cash Disbursements $ (0) $ (0) $ (0) $ (196,477) $ (897) $ (0) $ (0) $ (0) $ $ (0) $ - Ending Cash Balance $ 15,005 $ 2 $ 2 $ 36,052 $ 541 $ 45 $ 709 $ 1 $ $ 1 $ - Notes: (1) The debtors accounting systems are designed to provide operating reports in accordance with GAAP. The accounting systems are not designed to produce reports that are consistent with the requirements of the U.S. Trustee. As a result, the information (2) Receipts and disbursements include all cash transactions from bank statements including all activity within the accounts of a Debtor, and activity to and from affiliated Debtors. (3) Cash receipts include proceeeds from the D.I.P. financing of $155.3 million in debtor #09-11311, and $40 million in debtor #09-11322. (4) MOR 1-a represents a the cash flow of the current operating accounts used by the Debtors, and excludes lockbox accounts, investment accounts, and ZBAs. (5) All amounts are stated in U.S. Dollars. Accounts normally stated in Canadian Dollars, British Pounds, or Euros have been converted to USD at May 31, 2009 foreign exchange rates. In re: AbitibiBowater Inc., et al., Chapter 11 MOR-1a Debtors Consolidated Schedule of Receipts and Disbursements (1) For the period of April 16, 2009 through May 31, 2009 (Dollars in Thousands) All Debtor's AbitibiBowater Inc. AbitibiBowater US Holding LLC Donohue Corp. Abitibi Consolidated Sales Corporation (ACSC) Abitibi- Consolidated Alabama Corporation Alabama River Newsprint Company (ARNC) Abitibi- Consolidated Corporation Augusta Woodlands, LLC Tenex Data Inc. Abitibi- Consolidated Finance LP Grand Totals 09-11296 09-11297 09-11298 09-11299 09-11300 09-11301 09-11302 09-11303 09-11304 09-11305 No Accounts No Accounts No Accounts No Accounts No Accounts Beginning Cash Balance ` $ - $ - $ 1 $ 1 $ - $ 78 $ 133 $ 273 $ - $ - Total Cash Receipts $ 513,455 $ - $ - $ - $ 88,077 $ - $ 671 $ 749 $ - $ - $ - Disbursements: Payroll & Payroll Taxes $ (64,645) $ (6,101) Non-Payroll Labor $ (2,579) $ (0) Raw Materials $ (52,343) $ (0) Utilities $ (16,996) Freight $ (63,473) $ (28,217) $ (2) SG&A $ (10,444) $ (1,910) $ (67) Supplies $ (9,553) $ (67) Wire Transfers to 3rd Parties $ (75,218) $ (5,929) Rent $ (64) Other (5) $ (97,320) $ (43,293) $ (548) $ (457) Total Cash Disbursements $ (392,635) $ - $ - $ - $ (85,450) $ - $ (685) $ (457) $ - $ - $ - Ending Cash Balance $ 141,726 $ - $ - $ 1 $ 2,629 $ - $ 64 $ 425 $ 273 $ - $ - Notes: (1) MOR 1-a represents the cash flow of the current operating accounts used by the debtors and excludes lockbox accounts, investment accounts, and ZBAs. (2) MOR 1-a also excludes D.I.P. financing cash receipts of $155.7 million in debtor #09-11311 and $40.0 million in debtor #09-11322. Also MOR 1-a excludes $46.0 million of currency exchange transactions, and also excludes $37.6 million of inter-company cash settlements. (3) The debtors' accounting systems are designed to provide operating reports in accordance with GAAP. The accounting systems are not designed to produce reports that are consistent with the requirements of the U.S. Trustee. As a result, the information presented in this schedule was prepared using bank account statements as supplied to the debtors from
the banks. The numbers presented in the cash flow are subject to change as additional information is made available. The information contained herein is provided to fulfill the requirements of the Office of the United States Trustee. All information contained herein is unaudited and subject to future adjustments. (4) All amounts are stated in U.S. Dollars. All accounts normally stated in Canadian Dollars, British Pounds, or Euros have been converted to USD at May 31, 2009 foreign exchange rates. (5) The amounts listed in Other are in the process of still being identified so in the future they can be accurately shown in one of the existing disbursement categories. In re: AbitibiBowater Inc., et al., Chapter 11 MOR-1a (continued) Debtors Consolidated Schedule of Receipts and Disbursements (1) For the period of April 16, 2009 through May 31, 2009 (Dollars in Thousands) Bowater Newsprint South LLC Bowater Newsprint South Operations LLC Bowater Finance II, LLC Bowater Alabama LLC Coosa Pines Golf Club, LLC Bowater Incorporated Catawba Property Holdings LLC Bowater Finance Company Inc. Bowater South American Holdings, Inc. Bowater America Inc. (BAI) Lake Superior Forest Products Inc. 09-11306 09-11307 09-11308 09-11309 09-11310 09-11311 09-11312 09-11314 09-11315 09-11316 09-11317 No Accounts No Accounts No Accounts No Accounts No Accounts Beginning Cash Balance $ 1 $ 1 $ - $ 230 $ - $ 6,591 $ - $ 3 $ - $ - $ 1 Total Cash Receipts $ - $ 58 $ - $ 340 $ - $ 274,216 $ - $ - $ - $ - $ 56 Disbursements: Payroll & Payroll Taxes $ (37,402) Non-Payroll Labor $ (62) $ (1,727) Raw Materials $ (37,405) Utilities $ (16,916) Freight $ (62) $ (19,086) SG&A $ (0) $ (9) $ (2,324) Supplies $ (178) $ (7,295) Wire Transfers to 3rd Parties $ (38,669) Rent $ (39) Other (5) $ (61) $ (150) $ (28,333) Total Cash Disbursements $ (0) $ (61) $ - $ (500) $ - $( 189,158) $ - $ - $ - $ - $ 1 Ending Cash Balance $ 1 $ 1 $ - $ 71 $ - $ 91,650 $ - $ 3 $ - $ - $ 58 Notes: (1) MOR 1-a represents the cash flow of the current operating accounts used by the debtors and excludes lockbox accounts, investment accounts, and ZBAs. (2) MOR 1-a also excludes D.I.P. financing cash receipts of $155.7 million in debtor #09-11311 and $40.0 million in debtor #09-11322. Also MOR 1-a excludes $46.0 million of currency exchange transactions, and also excludes $37.6 million of inter-company cash settlements. (3) The debtors' accounting systems are designed to provide operating reports in accordance with GAAP. The accounting systems are not designed to produce reports that are consistent with the requirements of the U.S. Trustee. As a result, the information presented in this schedule was prepared using bank account statements as supplied to the debtors from
the banks. The numbers presented in the cash flow are subject to change as additional information is made available. The information contained herein is provided to fulfill the requirements of the Office of the United States Trustee. All information contained herein is unaudited and subject to future adjustments. (4) All amounts are stated in U.S. Dollars. All accounts normally stated in Canadian Dollars, British Pounds, or Euros have been converted to USD at May 31, 2009 foreign exchange rates. (5) The amounts listed in Other are in the process of still being identified so in the future they can be accurately shown in one of the existing disbursement categories. In re: AbitibiBowater Inc., et al., Chapter 11 MOR-1a (continued) Debtors Consolidated Schedule of Receipts and Disbursements (1) For the period of April 16, 2009 through May 31, 2009 (Dollars in Thousands) Bowater Canada Finance Corporation Bowater Canadian Holdings Incorporated AbitibiBowater Canada Inc. Bowater Canadian Forest Products Inc. Bowater Maritimes Inc. Bowater LaHave Corporation Bowater Canadian Limited Bowater Nuway Inc. Bowater Nuway Mid- States Inc. Bowater Ventures Inc. AbitibiBowater US Holding 1 Corp 09-11319 09-11320 09-11321 09-11322 09-11324 09-11325 09-11326 09-11328 09-11329 09-11330 09-11331 No Accounts No Accounts Beginning Cash Balance $ 2 $ 3 $ 1 $ 12,371 $ 522 $ 46 $ 643 $1 $ - $ 1 $ - Total Cash Receipt $ 2 $ - $ - $ 148,302 $ 917 $ - $ 66 $ - $ - $ - $ - Disbursements: Payroll & Payroll Taxes $ (21,125) $ (17) Non-Payroll Labor $ (790) Raw Materials $ (14,938) Utilities $ (80) Freight $ (16,106) SG&A $ (0) $ (0) $ (0) $ (6,130) $ (0) $ (0) $ (0) $ (0) Supplies $ (2,014) Wire Transfers to 3rd Parties $ (30,619) Rent $ (25) Other (5) $ (23,600) $ (880) Total Cash Disbursements $ (0) $ (0) $ (0) $ (115,426) $ (897) $ (0) $ (0) $ (0) $ - $ (0) $ - Ending Cash Balance $ 4 $ 2 $ 2 $ 45,246 $ 541 $ 45 $ 709 $ 0 $ - $ 1 $ - Notes: (1) MOR 1-a represents the cash flow of the current operating accounts used by the debtors and excludes lockbox accounts, investment accounts, and ZBAs. (2) MOR 1-a also excludes D.I.P. financing cash receipts of $155.7 million in debtor #09-11311 and $40.0 million in debtor #09-11322. Also MOR 1-a excludes $46.0 million of currency exchange transactions, and also excludes $37.6 million of inter-company cash settlements. (3) The debtors' accounting systems are designed to provide operating reports in accordance with GAAP. The accounting systems are not designed to produce reports that are consistent with the requirements of the U.S. Trustee. As a result, the information presented in this schedule was prepared using bank account statements as supplied to the debtors from
the banks. The numbers presented in the cash flow are subject to change as additional information is made available. The information contained herein is provided to fulfill the requirements of the Office of the United States Trustee. All information contained herein is unaudited and subject to future adjustments. (4) All amounts are stated in U.S. Dollars. All accounts normally stated in Canadian Dollars, British Pounds, or Euros have been converted to USD at May 31, 2009 foreign exchange rates. (5) The amounts listed in Other are in the process of still being identified so in the future they can be accurately shown in one of the existing disbursement categories. In re: Abitibibowater Inc., et al., Chapter 11 MOR-2 Schedule of Cash Disbursements by Debtor Entity (Dollars in Thousands) Debtor Entity Notes Bankruptcy Case Number Disbursements for the Period April 16, 2009 to May 31, 2009 (1) AbitibiBowater Inc. (2) 09-11296 $ 0 AbitibiBowater US Holding LLC (2) 09-11297 $ 0 Donohue Corp. (2) 09-11298 $ 0 Abitibi Consolidated Sales Corporation (ACSC) 09-11299 $ 85,450 Abitibi-Consolidated Alabama Corporation (2) 09-11300 $ 0 Alabama River Newsprint Company (ARNC) 09-11301 $ 685 Abitibi-Consolidated Corporation 09-11302 $ 457 Augusta Woodlands, LLC (2) 09-11303 $ - Tenex Data Inc. (2) 09-11304 $ - Abitibi-Consolidated Finance LP (2) 09-11305 $ - Bowater Newsprint South LLC (2) 09-11306 $ - Bowater Newsprint South Operations LLC 09-11307 $ 0 Bowater Finance II, LLC (2) 09-11308 $ 61 Bowater Alabama LLC 09-11309 $ 500 Coosa Pines Golf Club, LLC (2) 09-11310 $ - Bowater Incorporated 09-11311 $ 189,158 Catawba Property Holdings LLC (2) 09-11312 $ - Bowater Finance Company, Inc. (2) 09-11314 $ - Bowater South American Holdings, Inc. (2) 09-11315 $ - Bowater America Inc. (BAI) (2) 09-11316 $ - Lake Superior Forest Products Inc. (2) 09-11317 $ - Bowater Canada Finance Corporation (2) 09-11319 $ 0 Bowater Canadian Holdings Incorporated (2) 09-11320 $ 0 AbitibiBowater Canada Inc. (2) 09-11321 $ 0 Bowater Canadian Forest Products Inc. 09-11322 $ 115,426 Bowater Maritimes Inc. 09-11324 $ 897 Bowater LaHave Corporation (2) 09-11325 $ 0 Bowater Canadian Limited (2) 09-11326 $ 0 Bowater Nuway Inc. (2) 09-11328 $ 0 Bowater Nuway Mid-States Inc. (2) 09-11329 $ - Bowater Ventures Inc. (2) 09-11330 $ 0 AbitibiBowater US Holding 1 Corp (2) 09-11331 $ - Total Disbursements $ 392,635 Notes: (1) Disbursement amounts in the main operating accounts include all payments issued during the period, excluding inter-company cash settlements of $37.6 million, and $46.0 million in currency exchange. Also, transfers between bank accounts are not included. (2) Indicates Debtor entities that have no disbursements or have disbursements of $500 or less to report during the period. In re: Abitibibowater Inc., et al., Chapter 11 MOR-3 Schedule of Debtors Bank Account Balances (Dollars in Thousands) Case # Debtor Entity Bank Name Bank Account Ending In: Curr $ Bank Balance @ 09 11298 Donohue Corp (DNC) Bank of America 6296 USD $ 1 09 11299 Abitibi Cons Sales Corp (ACSC) Bank of America 1568 USD $ 9,244 09 11299 Abitibi Cons Sales Corp (ACSC) Citibank 7095 USD $ 1,109 09 11299 Abitibi Cons Sales Corp (ACSC) Bank of America 1576 USD $ 4 09 11299 Abitibi Cons Sales Corp (ACSC) Bank of America 6171 USD $ 77 09 11299 Abitibi Cons Sales Corp (ACSC) Bank of America 2316 USD $ (0) 09 11299 Abitibi Cons Sales Corp (ACSC) Bank of America 2696 USD $ 2,558 09 11299 Abitibi Cons Sales Corp (ACSC) Bank of America 0862 USD $ - 09 11299 Abitibi Cons Sales Corp (ACSC) Bank of America 0870 USD $ - 09 11299 Abitibi Cons Sales Corp (ACSC) Bank of America 3463 USD $ - 09 11299 Abitibi Cons Sales Corp (ACSC) Bank of America 6598 USD $ - 09 11301 Alabama River Newsprint Company Regions 8852 USD $ 908 09 11301 Alabama River Newsprint Company Regions 6609 USD $ 1,075 09 11301 Alabama River Newsprint Company Regions 2789 USD $ 3 09 11301 Alabama River Newsprint Company Regions 5391 USD $ 1 09 11302 Abitibi-Consolidated Corporation Bank of America 6482 USD $ 44 09 11302 Abitibi-Consolidated Corporation Bank of America 9128 USD $ 2 09 11302 Abitibi-Consolidated Corporation Bank of America 2704 USD $ - 09 11302 Abitibi-Consolidated Corporation Bank of America 8511 USD $ 3 09 11302 Abitibi-Consolidated Corporation Bank of America 0430 USD $ 329 09 11302 Abitibi-Consolidated Corporation Bank of America 0429 USD $ 16 09 11302 Abitibi-Consolidated Corporation Bank of America 7832 USD $ 56 09 11302 Abitibi-Consolidated Corporation Bank of America 9656 USD $ 0 09 11302 Abitibi-Consolidated Corporation Bank of America 2388 USD $ 19 09 11303 Augusta Woodlands LLC Wachovia 7669 USD $ 273 09 11306 Bowater Newsprint South LLC Wachovia 7229 USD $ 1 09 11307 Bowater Newsprint South Ops (BNSO) Union Planters 9429 USD $ 1 09 11309 Bowater Alabama (BALI) Coosa Pines Federal Credit Union 2022 USD $ 71 09 11311 Bowater Incorporated (BI) Wachovia 9066 USD $ 207,312 09 11311 Bowater Incorporated (BI) Wachovia London 8036 GBP $ 6,636 09 11311 Bowater Incorporated (BI) Wachovia London 8166 EUR $ 3,727 09 11311 Bowater Incorporated (BI) Bank of America 2618 USD $ 2,289 09 11311 Bowater Incorporated (BI) Wells Fargo 0687 USD $ 228 09 11311 Bowater Incorporated (BI) Bank of New York 3002 USD $ (1) 09 11311 Bowater Incorporated (BI) AM South 3536 USD $ 41 09 11311 Bowater Incorporated (BI) BB&T 1324 USD $ 155 09 11311 Bowater Incorporated (BI) SunTrust 1261 USD $ 42 09 11311 Bowater Incorporated (BI) JPMorgan Chase 4478 USD $ 37 09 11311 Bowater Incorporated (BI) BB&T 6446 USD $ 25 09 11311 Bowater Incorporated (BI) SunTrust 4394 USD $ 69 09 11311 Bowater Incorporated (BI) Wachovia London 8026 USD $ 1 In re: Abitibibowater Inc., et al., Chapter 11 MOR-3 (continued) Schedule of Debtors Bank Account Balances (Dollars in Thousands) Case # Debtor Entity Bank Name Bank Account Ending In: Curr $ Bank Balance @ 09 11311 Bowater Incorporated (BI) Bank of America 5097 USD $ - 09 11311 Bowater Incorporated (BI) Wachovia 7224 USD $ 2 09 11311 Bowater Incorporated (BI) Arrowpoint Fed CU 2195 USD $ 0 09 11311 Bowater Incorporated (BI) Carolina First Investment 3946 USD $ 46,246 09 11311 Bowater Incorporated (BI) Carolina First 2882 USD $ 183 09 11314 Bowater Finance Company Inc. Wachovia 7062 USD $ 1 09 11317 Lake Superior Forest Products Inc. Bank of America 1105 USD $ 58 09 11319 Bowater Canada Finance Corporation Wachovia 7892 USD $ 15,002 09 11319 Bowater Canada Finance Corporation Wachovia 9074 USD $ 2 09 11319 Bowater Canada Finance Corporation Wachovia 7143 USD $ 1 09 11320 Bowater Canadian Holdings Incorporated Wachovia 9382 USD $ 2 09 11321 AbitibiBowater Canada Inc. Wachovia 7711 USD $ 2 09 11322 Bowater Canadian Forest Products (BCFPI) Bank of Montreal 0135 USD $ 21,284 09 11322 Bowater Canadian Forest Products (BCFPI) Bank of Montreal 2181 CAD $ 5,689 09 11322 Bowater Canadian Forest Products (BCFPI) Bank of Montreal 0811 CAD $ 12 09 11322 Bowater Canadian Forest Products (BCFPI) Bank of Montreal 5945 CAD $ - 09 11322 Bowater Canadian Forest Products (BCFPI) Bank of Montreal 8603 CAD $ - 09 11322 Bowater Canadian Forest Products (BCFPI) Bank of Montreal 8611 CAD $ - 09 11322 Bowater Canadian Forest Products (BCFPI) Bank of Montreal 5990 USD $ 870 09 11322 Bowater Canadian Forest Products (BCFPI) Bank of Montreal 9511 CAD $ 1,080 09 11322 Bowater Canadian Forest Products (BCFPI) Bank of Montreal 7609 CAD $ 314 09 11322 Bowater Canadian Forest Products (BCFPI) Bank of Montreal 1445 USD $ 849 09 11322 Bowater Canadian Forest Products (BCFPI) Bank of Montreal 2392 USD $ 234 09 11322 Bowater Canadian Forest Products (BCFPI) Toronto Dominion 4845 USD $ 97 09 11322 Bowater Canadian Forest Products (BCFPI) Bank of America 0351 USD $ 619 09 11322 Bowater Canadian Forest Products (BCFPI) Toronto Dominion 6782 CAD $ 2,888 09 11322 Bowater Canadian Forest Products (BCFPI) Banque Nationale du Canada 0027 CAD $ 84 09 11322 Bowater Canadian Forest Products (BCFPI) Toronto Dominion 8039 CAD $ - 09 11322 Bowater Canadian Forest Products (BCFPI) Toronto Dominion 3089 CAD $ 385 09 11322 Bowater Canadian Forest Products (BCFPI) Wachovia 9531 USD $ 2 09 11322 Bowater Canadian Forest Products (BCFPI) Bank of Nova Scotia- Maniwaki Ops 5412 CAD $ 0 09 11322 Bowater Canadian Forest Products (BCFPI) Wachovia London 8036 GBP $ 705 09 11322 Bowater Canadian Forest Products (BCFPI) Lloyds of London 2394 GBP $ 359 09 11324 Bowater Maritime Inc (DAL) Bank of Montreal 5982 USD $ 42 09 11324 Bowater Maritime Inc (DAL) Bank of Montreal 5889 CAD $ 545 09 11325 Bowater LaHave Corporation Wachovia 6638 USD $ 45 09 11326 Bowater Canadian Limited CIBC 5917 CAD $ 20 09 11326 Bowater Canadian Limited CIBC 6918 CAD $ 753 09 11328 Bowater Nuway Inc (BEN) Wachovia 6806 USD $ 1 09 11330 Bowater Ventures Inc Wachovia 9612 USD $ 1 In re: Abitibibowater Inc., et al., Chapter 11 MOR-4 Schedule of Professional Fees and Expenses Paid For the Period April 16, 2009 to May 31, 2009 NONE In re: Abitibibowater Inc., et al., Chapter 11 MOR-5 Declaration Regarding the Reconciliation of the Debtors’ Bank Accounts As of May 31, 2009 William G. Harvey hereby declares under penalty of perjury: • I am the Senior Vice President and Chief Financial Officer for Abitibibowater Inc, et at., the above-captioned debtors and debtors in possession (collectively, the “Debtors”). I am familiar with the Debtors’ day-to-day operations, business, affairs and books and records. • I am authorized to submit this Declaration of behalf of the Debtors. • I hereby certify that the Debtor and all affiliated Debtors are reconciled on a regular and timely basis. Dated: June 30, 2009 Respectfully submitted, By: William G. Harvey In re: Abitibibowater Inc., et al., Chapter 11 MOR-6 Debtor Consolidating Balance Sheet As of May 31, 2009 AbitibiBowater Inc. AbitibiBowater US Holding LLC Donohue Corp. Abitibi Consolidated Sales Corporation Abitibi- Consolidated Alabama Corporation Alabama River Newsprint Company Abitibi- Consolidated Corporation Augusta Woodlands, LLC Tenex Data Inc. Abitibi- Consolidated Finance LP 09-11296 09-11297 09-11298 09-11299 09-11300 09-11301 09-11302 09-11303 09-11304 09-11305 ASSETS Cash and Cash Equivalents $ - $ - $ 568 $ 10,565,091 $ - $ 1,955,993 $ (625,863) $ 273,430 $ - $ 51,117 Receivables - Net $ - $ - $ - $ 132,438 $ 4,452,534 $ 392,041 $ 7,544,695 $ - $ - $ - Inventories $ - $ - $ - $ 48,795,822 $ - $ 7,891,848 $ 2,015,222 $ - $ - $ - Prepaid Expense and Other $ 256,570 $ - $ - $ (506,813) $ - $ 853,000 $ (32,386) $ - $ - $ - Notes Receivable from Affiliates $ 379,757,776 $ - $ 499,163,279 $ 268,284,065 $ - $ - $ 92,000,000 $ - $ - $ 36,309,799 Income Tax Receivable $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Deferred Income Taxes $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Total Current Assets $ 380,014,346 $ - $ 499,163,279 $ 327,270,603 $ 4,452,534 $ 11,092,882 $ 100,901,668 $ 273,430 $ - $ 36,360,916 Plant and Equipment $ - $ - $ - $ 8,958,057 $ 898,483 $ 437,398,966 $ 529,692,019 $ 24,877 $ - $ - Less Accumulated Depreciation $ - $ - $ - $ 6,669,288) $ (898,483) $ (274,564,706) $ (493,203,797) $ - $ - $ - Plant and Equipment - Net $ - $ - $ - $ 2,288,769 $ - $ 162,834,260 $ 36,488,222 $ 24,877 $ - $ - Goodwill/Intangible Assets $ - $ - $ - $ 46,733 $ - $ - $ 52,884 $ - $ - $ - Investment in Subsidiaries 3,151,234,500 $ 688,900,001 $1,257,832,309 $ 354,938,998 $221,189,750 $ - $ 31,483,052 $ - $ - $ - Other Assets 12,758,957 $ - $ - $ 17,181,715 $ - $ - $ 32,950,168 $ - $ - $ - Total Assets 3,544,007,803 $ 688,900,001 $1,756,996,156 $ 701,726,818 $225,642,284 $ 173,927,142 $ 201,875,994 $ 298,307 $ - $ 36,360,916 LIABILITIES AND SHAREHOLDERS' EQUITY Trade Accounts Payable $ - $ - (236,787) $ 6,210,260 $ (4,302,873) $ (7,151) $ 4,610,117 $ (2) $ - $ - Accrued Liabilites $ 2,457,472 $ - $ (40,990,249) $ 72,974,066 $ 2,741 $ 15,161,639 $ 6,387,546 $ - $ - $ - Current Portion of Long Term Debt $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Due to (from) Affiliates $ 71,212,357 $ - $ 35,670,858 $(1,814,068,067) $ (12,470,997) $ - $ 314,054,997 $ (4,371,680) $ - $ - Income Tax Payable (Receivable) $ (30,739,868) $ (11,987,501) $ 8,568,264 $ 14,105,093 $ (3,999,490) $ - $ (29,724,923) $ (17,890) $ - $ - Total Current Liabilities $ 42,929,961 $ (11,987,501) $ 3,012,086 $(1,720,778,648) $ (20,770,619) $ 15,154,488 $ 295,327,737 $ (4,389,572) $ - Long Term Debt $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Reclassification to Current Portion $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Long Term Debt Net of Current Installments $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Loans from Affiliates $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Other Liabilities $ (2) $ - $ 1 $ 419,957 $ - $ 456,908 $ 130,794,923 $ - $ - $ (1) Deferred Income Taxes (Assets) $ (1,670,339) $ (11,797,935) $ (8,927,186) $ (41,114,383) $ 26,782,890 $ - $ (202,989,475) $ - $ - $ - Liabilities Subject to Compromise Debt $ 296,279,094 $ - $ - $ - $ - $ - $ - $ - $ - $ 7,841,810 Affiliate Debt $ 725,156,300 $ 790,291,273 $ - $ 452,468,669 $253,247,307 $ - $ - $ - $ - $ 130,252 Accounts Payable $ - $ - $ 236,787 $ 7,359,1281 $ - $ 1,683,779 $ 4,006,583 $ - $ - $ - Other $ - $ - $ - $ 21,813,064 $ - $ 3,764,212 $ 11,099,295 $ - $ - $ - Total Liabilities $ 1,062,695,014 $ 766,505,837 $ (5,678,312) $(1,279,832,160) $259,259,578 $ 21,059,387 $ 238,239,063 $ (4,389,572) $ - $ (6,196,478) Shareholder Equity - Net $ 2,481,312,789 $ (77,605,836) $1,762,674,468 $ 1,981,558,978 $ (33,617,294) $ 152,867,755 $ (36,363,069) $ 4,687,879 $ - $ 42,557,394 Total Liabilities and Shareholders' Equity $ 3,544,007,803 $ 688,900,001 $1,756,996,156 $ 701,726,818 $225,642,284 $ 173,927,142 $ 201,975,994 $ 298,307 $ - $ 36,360,916 NOTE: The information contained herein is provided to fulfill the requirements of the Office of the U. S Trustee. All information is unaudited and subject to further adjustment. In re: Abitibibowater Inc., et al., Chapter 11 MOR-6 (continued) Debtor Consolidating Balance Sheet As of May 31, 2009 Bowater Newsprint South LLC Bowater Newsprint South Operations LLC Bowater Finance II LLC Bowater Alabama LLC Coosa Pines Golf Club LLC Bowater Incorporated Catawba Property Holdings LLC Bowater Finance Company Inc. Bowater South American Holdings Inc. Bowater America Inc. Lake Superior Forest Products Inc. 09-11306 09-11307 09-11308 09-11309 09-11310 09-11311 09-11312 09-11314 09-11315 09-11316 09-11317 ASSETS Cash and Cash Equivalents $ - $ 3,870 $ - $ 72,830 $ - $ 275,205,646 $ - $ 2,714 $ - $ - $ 45,096 Receivables - Net $ - $ 9,551,886 $ - $ 3,255,461 $ - $ 105,851,150 $ - $ - $ - $ 124,922,462 $ - Inventories $ - $ 10,006,165 $ - $ 47,283,605 $ - $ 109,577,966 $ - $ - $ - $ 3,444,674 $ - Prepaid Expense and Other $ - $ 135,944 $ - $ 3,691,392 $ - $ 36,727,966 $ - $ - $ - $ - $ - Notes Receivable from Affiliates $ - $ - $ - $ - $ - $ 1,257,094,712 $ - $ 30,060,355 $ - $ - $ - Income Tax Receivable $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Deferred Income Taxes $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Total Current Assets $ - $ 19,697,865 $ - $ 54,303,288 $ - $ 1,784,457,440 $ - $ 30,063,069 $ - $ - $ 45,096 Plant and Equipment $ - $ 75,789,653 $ - $ 466,016,027 $ 1,792,022 $ 2,732,063,135 $ - $ - $ - $ 3,403,000 $ - Less Accumulated Depreciation $ - $(180,270,495) $ - $(195,399,095) $(1,532,014) $(1,994,180,982) $ - $ - $ - $ (3,403,000) $ - Plant and Equipment - Net $ - $ 195,519,158 $ - $ 270,616,943 $ 260,008 $ 737,882,153 $ - $ - $ - $ - $ - $ - Goodwill/Intangible Assets $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 9,100,000 $ - Investment in Subsidiaries $ - $ - $ - $ - $ - $ 2,644,014,429 $ - $ (3,010,119) $ - $ 10,259,164 $ 93,928,061 Other Assets $ - $ 139,443 $ - $ - $ - $ 54,889,838 $ - $ - $ - $ - $ - Total Assets $ - $ 215,356,466 $ - $324,920,200 $ 260,008 $ 5,221,243,860 $ - $ 27,052,950 $ - $ 147,726,300 $ 93,973,157 LIABILITIES AND SHAREHOLDERS' EQUITY Trade Accounts Payable $ (2,605,999) $ 1,772,976 $ - $ 732,196 $ - $ 20,860,051 $ - $ - $ - $ - $ - Accrued Liabilites $ - $ 4,709,134 $ - $ 14,530,904 $ 11,600 $ 79,081,774 $ - $ - $ - $ 4,384,515 $ (11,980,000) Current Portion of Long Term Debt $ - $ - $ - $ - $ - $ 163,940,000 $ - $ - $ - $ - $ - Due to (from) Affiliates $ 20,800,000 $ 24,081,629 $ - $(138,812,149) $ (233,894) $ (513,910,384) $ - $ (11,188) $ - $ 728,767,039 $ 77,530,184 Income Tax Payable (Receivable) $ - $ - $ - $ - $ - $ 44,215,037 $ - $ - $ - $ - $ - Total Current Liabilities $ 18,194,001 $ 30,563,739 $ - $ (222,294) $ (205,813,522) $ - $ (11,188) $ - $ 733,151,554 $ 65,550,184 Long Term Debt $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Reclassification to Current Portion $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Long Term Debt Net of Current Installments $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Loans from Affiliates $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Other Liabilities $ 2,000,000 $ - $ - $ 773,567 $ (1) $ 31,114,508 $ - $ (1) $ - $ - $ 1 Deferred Income Taxes (Assets) $ 77,447,000 $ (5,396,946) $ - $ 57,051,055 $ (55,865) $ 4,765,141 $ - $ - $ - $ 3,708,399 $ 10,063,421 Liabilities Subject to Compromise Debt $ - $ 4,632,100 $ - $ - $ - $ 1,607,060,613 $ - $ - $ - $ - $ - Affiliate Debt $ - $ - $ - $ - $ - $ 515,392,561 $ - $ - $ - $ - $ - Accounts Payable $ 2,605,999 $ - $ - $ 14,899,313 $ - $ 39,352,470 $ - $ - $ - $ - $ - Other $ - $ 7,885,246 $ - $ 60,619,871 $ - $ 269,370,144 $ - $ - $ - $ - $ - Total Liabilities $ 100,247,000 $ 37,684,139 $ - $ 9,794,757 $ (278,160) $ 2,261,241,914 $ - $ (11,189) $ - $ 736,859,953 $ 75,613,606 Shareholder Equity - Net $(100,247,000) $ 177,672,327 $ - $ 315,125,463 $ 538,168 $ 2,960,001,945 $ - $ 27,064,139 $ - $(589,133,653 $ 18,359,551 Total Liabilities and Shareholders' Equity $ - $ 215,356,466 $ - $ 324,920,220 $ 260,008 $ 5,221,243,860 $ - $ 27,052,950 $ - $ 147,726,300 $ 93,973,157 NOTE: The information contained herein is provided to fulfill the requirements of the Office of the U. S Trustee. All information is unaudited and subject to further adjustment. In re: Abitibibowater Inc., et al., Chapter 11 MOR-6 (continued) Debtor Consolidating Balance Sheet As of May 31, 2009 Bowater Canada Finance Corporation Bowater Canadian Holdings Incorporated AbitibiBowater Canada Inc. Bowater Canadian Forest Products Inc. Bowater Maritimes Inc. Bowater LaHave Corporation Bowater Canadian Limited Bowater Nuway Inc. Bowater Nuway Mid- states Inc. Bowater Ventures Inc. Abitibi US Holding 1 Corp. Grand Total 09-11319 09-11320 09-11321 09-11322 09-11324 09-11325 09-11326 09-11328 09-11328 09-11330 09-11331 ASSETS Cash and Cash Equivalents $ 13,868 $ 2,197 $ 32,847,889 $ 551,769 $ 45,530 $ 708,742 $ 1,268 $ - $ 1,632 $ - $ 336,725,336 Receivables - Net $ 15,001,949 $ - $ - $ 94,740,398 $ 139,005 $ - $ - $ (13,896) $ - $ - $ 350,968,174 Inventories $ - $ - $ - $ 110,717,410 $ 234,849 $ - $ - $ 37,097 $ 341,578 $ - $ - $ 340,346,236 Prepaid Expense and Other $ - $ - $ - $ 15,195,180 $ - $ - $ - $ 55,000 $ 94,022 $ - $ - $ 56,469,875 Notes Receivable from Affiliates $ - $ 47,384,048 $ - $ 470,924,118 $ - $ - $ - $ 483,363,744 $ - $ - $ - $ 3,564,341,896 Income Tax Receivable $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Deferred Income Taxes $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Total Current Assets $ 47,397,916 $ 2,197 $ 724,424,995 $ 925,623 $ 45,530 $ 708,742 $483,457,109 $ 421,704 $ 1,632 $ - $ 4,648,851,517 $ - Plant and Equipment $ - $ - $ - $ 1,686,849,163 $ 6,909,478 $ - $ - $ 363,434 $ 23,243,694 $ - $ - $ 6,273,402,008 Less Accumulated Depreciation $ - $ - $ - $(1,013,965,695) $ (1,746,740) $ - $ - $ (160,481) $(18,322.325) $ - $ - $ (4,184,317,101) Plant and Equipment - Net $ - $ - $ - $ 672,883,468 $ 5,162,738 $ - $ - $ 202,953 $ 4,921,369 $ - $ - $ 2,089,084,907 Goodwill/Intangible Assets $ - $ - $ - $ 46,889,000 $ - $ - $ - $ - $ - $ - $ - $ 56,098,617 Investment in Subsidiaries $ 818,915,952 $2,789,245,026 $1,641,734,410 $ 967,621,734 $ - $ - $7,132,489 $ 5,100,000 $ - $ 820,283 $ - $ 14,761,149,348 Other Assets $ 1,225,459 $ - $ - $ 80,816,125 $ 9,606,341 $79,809,309 $ - $ - $ - $ - $ - $ 209,568,046 Total Assets $ 835,143,360 $2,836,642,942 $1,641,736,607 $ 2,492,645,322 $ 15,694,702 $79,809,309 $7,841,231 $488,760,062 $ 5,343,073 $ 821,915 $ - $ 21,764,752.435 LIABILITIES AND SHAREHOLDERS' EQUITY Trade Accounts Payable $ - $ - $ - $ 4,013,083 $ (851,764) $ - $ - $ (65,844) $ (27,692) $ (213,841) $ - $ 29,886,730 Accrued Liabilites $ - $ (348,885) $ 5,585 $ 95,470,630 $ 3,330,757 $ - $ - $ 423,375 $ 345,884 $ - $ - $ 245,958,488 Current Portion of Long Term Debt $ - $ - $ - $ 42,060,000 $ - $ - $ - $ - $ - $ - $ - $ 206,000,000 Due to (from) Affiliates $ 15,457,837 $ 794,168 $ 5,675,750 $ (380,220,852) $ 50,437,125 $ - $ 13,743 $ (2,572,302) $ 72,924,591 $ 128,110 $ - $(1,463,209,664) Income Tax Payable (Receivable) $ - $ (1) $ - $ 229,059 $ 10,277 $ - $ 110,645 $ - $ - $ - $ - $ (9,231,298) Total Current Liabilities $ 15,457,837 $ 445,282 $ 5,681,335 $ (238,448,080) $ 52,926,395 $ - $ 124,388 $ (2,214,771) $ 73,243,783 $ (85,731) $ - $ (990,676,744) Long Term Debt $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Reclassification to Current Portion $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Long Term Debt Net of Current Installments $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Loans from Affiliates $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Other Liabilities $ (3) $ (2) $ (2) $ 36,607,814 $ 6,091,326 $ - $ (1) $ 2,552,509 $ 100,003 $ - $ - $ 210,911,508 Deferred Income Taxes (Assets) $ 9,598,923 $ (1,866,981) $ 33,025 $ 127,969 $ - $ (108,351) $ (794,126) $ 8,388,413 $ - $ - $ (65,360,962) Liabilities Subject to Compromise Debt $ 619,405,721 $ - $ - $ 354,574,642 $ - $ - $ - $ - $ - $ - $ - $ 2,889,793,980 Affiliate Debt $ - $ 100,912,003 $ 346,410,436 $ 565,689,946 $ 142,801,139 $ - $ - $ - $ - $ - $ - $ 3,875,424,164 Accounts Payable $ - $ - $ - $ 34,075,272 $ 1,125,914 $ - $ - $ 55,012 $ - $ 213,841 $ - $ 150,614,151 Other $ - $ - $ - $ 68,585,536 $ 37,820,954 $ - $ - $ - $ - $ - $ - $ 480,958,322 Total Liabilities $ 644,462,478 $ 99,490,306 $ 346,410,436 $ 821,118,155 $ 240,983,697 $ - $ 16,036 $ (401,376) $ 81,732,199 $ 128,110 $ - $ 6,506,664,419 Shareholder Equity - Net $ 190,680,882 $2,737,152,636 $ 1,295,326,171 $ 1,671,527,167 $(225,198,995) $79,854,839 $7,825,195 $489,161,438 $(76,389,126) $ 693,805 $ - $15,258,088,016 Total Liabilities and Shareholders' Equity $ 835,143,360 $2,836,642,942 $ 1,641,736.607 $ 2,492,645,322 $ 15,694,702 $79,854,839 $7,841,231 $488,760,062 $ 5,343,073 $ 821,915 $ - $21,764,752,435 NOTE: The information contained herein is provided to fulfill the requirements of the Office of the U. S Trustee. All information is unaudited and subject to further adjustments. In re: Abitibibowater Inc., et al., Chapter 11 MOR-7 Debtor Consolidating Statement of Operations For the Period April 16, 2009 to May 31, 2009 AbitibiBowater Inc. AbitibiBowater US Holding LLC Donohue Corp. Abitibi Consolidated Sales Corporation Abitibi-Consolidated Alabama Corporation Alabama River Newsprint Company Abitibi-Consolidated Corporation Augusta Woodlands, LLC Tenex Data Inc. Abitibi- Consolidated Finance LP 09-11296 09-11297 09-11298 09-11299 09-11300 09-11301 09-11302 09-11303 09-11304 09-11305 Statement of Operations Sales – Net $ - $ - $ - $ 137,321,701 $ (46,389) $ (45,924) $ 45,946 $ - $ - $ - Cost of Sales $ - $ - $ - $ 137,929,672 $ (45,924) $ 4,288,442 $ 5,444,821 $ - $ - $ - Gross Profit (Loss) $ - $ - $ - $ (607,972) $ (465) $ (4,334,366) $ (5,398,876) $ - $ - $ - Operating Expenses Selling, General and Administrative $ 1,532,905 $ - $ - $ 1,503,979 $ - $ - $ - $ - $ - $ - Research and Development $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Restructuring and Other Costs $ 6,700,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - Total Operating Expenses $ 8,232,905 $ - $ - $ 1,503,979 $ - $ - $ 25 $ - $ - $ - Operating Income (Loss) $ (8,232,905) $ - $ - $ (2,111,950) $ (465) $ (4,334,366) $ (5,398,901) $ - $ - $ - Interest Income (Expense) $ (36,777,400) $ (27,872,713) $ 629,369) $ 2,555,593 $ (1,960,929) $ (360,065) $ (6,034) $ - $ - $ (13,723) Other Income (Expense) Net $ (620,853) $ - $ - $ (5,796,187) $ - $ - $ (3,630) $ - $ - $ 45,559 Equity in Earnings of Subs $ - $ - $ - $ (353,377) $ - $ - $ - $ - $ - $ - Income Before Taxes $ (45,631,158) $ (27,872,713) $ (629,369) $ (5,705,922) $ (1,961,394) $ (4,694,431) $ (5,408,564) $ - $ - $ 131,836 Income Tax Expense $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Net Income before Discontinued Operations $ (45,631,158) $ (27,872,713) $ (629,369) $ (5,705,922) $ (1,961,394) $ (4,694,431) $ (5,412,597) $ - $ - $ 31,836 Discontinued Operations $ - $ - $ - - $ - $ - $ - $ - $ - $ - Net Income (Loss) $ (45,631,158) $ (27,872,713) $ (629,369) $ (5,705,922) $ (1,961,394) $ (4,694,431) $ (5,412,597) $ - $ - $ 131,836 NOTE: The information contained herein is provided to fulfill the requirements of the Office of the U. S Trustee. All information is unaudited and subject to further adjustments. In re: Abitibibowater Inc., et al., Chapter 11 MOR-7 (continued) Debtor Consolidating Statement of Operations For the Period April 16, 2009 to May 31, 2009 Bowater Newsprint South LLC Bowater Newsprint South Operations LLC Bowater Finance II LLC Bowater Alabama LLC Coosa Pines Golf Club LLC Bowater Incorporated Catawba Property Holdings LLC Bowater Finance Company Inc. Bowater South American Holdings Inc. Bowater America Inc. Lake Superior Forest Products Inc. 09-11306 09-11307 09-11308 09-11309 09-11310 09-11311 09-11312 09-11314 09-11315 09-11316 09-11317 Statement of Operations Sales - Net $ - $ 6,340,692 $ - $ 36,681,256 $ - $ 92,993,870 $ - $ - $ - $ 141,633,912 $ - Cost of Sales $ - $ 8,151,873 $ - $ 37,158,786 $ (1,343) $ 53,998,679 $ - $ - $ - $ 143,840,876 $ - Gross Profit (Loss) $ - $ (1,811,181) $ - $ (477,530) $ 1,343 $ 48,995,192 $ - $ - $ - $ (2,206,964) $ - Operating Expenses Selling, General and Administrative $ - $ (2,162) $ - $ 280,654 $ - $ 16,322,068 $ - $ - $ - $ 27,709 $ - Research and Development $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Restructuring and Other Costs $ - $ - $ - $ - $ - $ (357,020) $ - $ - $ - $ - $ - Total Operating Expenses $ - $ (2,162) $ - $ 280,654 $ - $ 15,965,048 $ - $ - $ - $ 27,709 $ - Operating Income (Loss) $ - $ (1,809,020) $ - $ (758,184) $ 1,343 $ 33,030,144 $ - $ - $ - $ (5,139,445) $ - Interest Income (Expense) $ - $ (48,751) $ - $ (255) $ - $ 34,199,325 $ - $ - $ - $ (224) $ (25) Other Income (Expense) Net $ - $ (8,504) $ - $ (485,788) $ - $ 5,792,895 $ - $ - $ - $ (2,904,549) $ 3,480 Equity in Earnings of Subs $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ (195,200) Income Before Taxes $ - $ (1,866,274) $ - $ (1,244,227) $ 1,343 $ 73,022,364 $ - $ - $ - $ (5,139,445) $ (121,745) Income Tax Expense $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 31,667 $ - Net Income before Discontinued Operations $ - $ (1,866,274) $ - $ (1,244,227) $ 1,343 $ 73,022,364 $ - $ - $ - $ (5,091,945) $ (121,745) Discontinued Operations $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Net Income (Loss) $ - $ (1,866,274) $ - $ (1,244,227) $ 1,343 $ 73,022,364 $ - $ - $ - $ (5,091,945) $ (121,745) NOTE: The information contained herein is provided to fulfill the requirements of the Office of the U. S Trustee. All information is unaudited and subject to further adjustments. In re: Abitibibowater Inc., et al., Chapter 11 MOR-7 (continued) Debtor Consolidating Statement of Operations For the Period April 16, 2009 to May 31, 2009 Bowater Canada Finance Corporation Bowater Canadian Holdings Incorporated AbitibiBowater Canada Inc. Bowater Canadian Forest Products Inc. Bowater Maritimes Inc. Bowater LaHave Corporation Bowater Canadian Limited Bowater Nuway Inc. Bowater Nuway Mid-states Inc. Bowater Ventures Inc. AbitibiBowater US Holding 1 Corp. Grand Total 09-11319 09-11320 09-11321 09-11322 09-11324 09-11325 09-11326 09-11328 09-11328 09-11330 09-11331 Statement of Operations Sales - Net $ - $ - $ - $ 78,384,044 $ (20,297) $ - $ - $ - $ (101,616) $ - $ - $ 493,187,195 Cost of Sales $ - $ - $ - $ 83,694,970 $ 299,431 $ - $ - $ 58,636 $ 89,824 $ - $ - $ 465,008,741 Gross Profit (Loss) $ - $ - $ - $ (5310,926) $ (319,728) $ - $ - $ (58,636) $ (291,439) $ - $ - $ 28,178,454 Operating Expenses Selling, General and Administrative $ - $ - $ - $ 4,244,579 $ - $ - $ - $ - $ 1,906 $ - $ - $ 23,911,662 Research and Development $ - $ - $ - $ (225,486) $ - $ - $ - $ - $ - $ - $ - $ (225,486) Restructuring and Other Costs $ - $ - $ - $ (372,178) $ (8,707) $ - $ - $ - $ - $ - $ - $ 5,962,096 Total Operating Expenses $ - $ - $ - $ 3,646,916 $ (8,707) $ - $ - $ - $ 1,906 $ - $ - $ 9,648,272 Operating Income (Loss) $ - $ - $ - $ (8,957,842) $ (311,021) $ - $ - $ (58,636) $ (293,345) $ - $ - $ (1,469,818) Interest Income (Expense) $ (264) $ 90,464 $ (47) $ 1,600,244) $ (551,112) $ (1,526) $ (4) $ 524,820 $ - $ (47) $ - $ (32,452,529) Other Income (Expense) Net $ (1,099,800) $ (726,058) $ (1,854,694) $ (4,793,757) $ (15,876,843) $ - $ - $ (25,850) $ (3,745) $ - $ - $ (28,188,321) Equity in Earnings of Subs $ - $ - $ - $ 14,003 $ - $ - $ - $ - $ $ - $ - $ (534,575) Income Before Taxes $ (1,100,064) $ (635,594) $ (1,854,741) $ 15,337,840 $ (16,738,975) $ (1,526) $ (4) $ 440,335 $ (297,090) $ (47) $ - $ (62,645,242) Income Tax Expense $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 31,667 Net Income before Discontinued Operations $ (1,100,064) $ (635,594) $ (1,854,741) $ (15,337,840) $ (16,738,975) $ (1,526) $ (4) $ 440,335 $ (297,090) $ (47) $ - $ (62,613,575) Discontinued Operations $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Net Income (Loss) $ (1,100,064) $ (635,594) $ (1,854,741) $ (15,337,840) $ (16,738,975) $ (1,526) $ (4) $ 440,335 $ (297,090) $ (47) $ - $ (62,613,575) NOTE: The information contained herein is provided to fulfill the requirements of the Office of the U. S Trustee. All information is unaudited and subject to further adjustment. In re: Abitibibowater Inc., et al., Chapter 11 MOR-8 Declaration Regarding the Status of Post-Petition Taxes of the Debtors As of May 31, 2009 Joel P. Ihrig hereby declares under penalty of perjury: • I am the Vice President of Taxation for Abitibibowater Inc, et at., the above-captioned debtors and debtors in possession (collectively, the “Debtors”). I am familiar with the Debtors’ day-to-day operations, business, affairs and books and records. • I am authorized to submit this Declaration of behalf of the Debtors. • To the best of my knowledge, I certify that the Debtor and all affiliated Debtors have paid all taxes from April 16, 2009, the petition date, through May 31, 2009, the end of this reporting period. Dated: June 30, 2009 Respectfully submitted, By: Joel P. Ihrig In re: Abitibibowater Inc., et al., Chapter 11 MOR-9 Combined Listing of Post-Petition Aged Accounts Payable As of May 31, 2009 (Dollars in Thousands) Number of Days Outstanding Notes 0-30 31-60 61-90 Over 90 Totals Accounts Payable (1) $ 16,139 $ 13,748 $ - $ - $ 29,887 0 0 Total Post-Petition Payables $ 16,139 $ 13,748 $ - $ - $ 29,887 Notes: (1) The post-petition accounts payable reported represents open and outstanding trade vendor invoices, based on invoice date, that have been entered into the Debtors' accounts payable system. These amounts do not include any payables based on accruals for which invoices have not been received nor services performed. In re: Abitibibowater Inc., et al., Chapter 11 MOR-10 Combined Listing of Aged Accounts Receivable As of May 31, 2009 (Dollars in Thousands) Number of Days Outstanding Notes Current 0-30 31-60 61-90 Over 90 Totals Accounts Receivable (1) $ 213,422 $ 56,115 $ 13,186 $ 8,586 $ 15,332 $ 306,641 Other Receivables (2) (4) 33,257 0 0 0 25,252 58,509 0 0 Totals (3) $ 246,679 $ 56,115 $ 13,186 $ 8,586 40,584 $ 365,150 Notes: (1) All amounts have been converted to U.S. Dollars. (2) Other receivables primarily include: -- A/R Excise/Commodity Taxes $2.0 million -- A/R Black Liquid Fuel Credit Program $19.2 million -- A/R Logging/Roads/Bridges Credit $25.3 million -- A/R Other $12.0 (3) The accounts receivable stated above do not include any provisions for bad debt or amounts due to customers for trade rebates. The allowance for bad debt is approximately $11.4 million, and the trade rebate reserve is approximately $2.7 million. (4) The Logging/Roads/Bridges Credit of $25.3 mil relates to 2008 and is expected to be paid in September, 2009. 7 In re: Abitibibowater Inc., et al., Chapter 11 MOR-11 Summary of Debtors Pos-Petition Intercompany Receivables and Payable March 31, 2009 May 31, 2009 Change Intercompany Intercompany Intercompany Intercompany Intercompany Intercompany Case Debtor Entity Balances Notes Total Balances Notes Total Balances Notes Total 09-11296 AbitibiBowater Incorporated $ (64,988,470) $ (345,811,671) $ (410,800,141) $ (69,214,581) $ (345,398,524) $ (414,613,105) $ (4,226,111) $ 413,147 $ (3,812,964) 09-11297 AbitibiBowater US Holding LLC $ - $ (784,698,055) $ (784,698,005) $ - $ (780,291,273) $ (790,291,273) $ - $ (5,593,218) $ (5,593,218) 09-11298 Donohue Corp. $ (35,660,273) $ 19,492,525 $ 483,832,252 $ (35,670,858) $ 519,028,391 $ 483,357,533 $ (10,585) $ (464,134) $ (474,719) 09-11299 Abitibi Consolidated Sales Corporation $ 42,521,643 $(188,078,290) $ (145,556,647) $ (14,704,410) $ (184,221,362) $ (198,925,772) $ (57,226,053) $ 3,856,928 $( 53,369,125) 09-11300 Abitibi-Consolidated Alabama Corporation $ 6,153,379 $(250,649,117) $ (244,495,738) $ 6,150,997 $ (253,247,307) $ (247,096,310) $ (2,382) $ (2,598,190) $ (2,600,572) 09-11301 Alabama River Newsprint Company $ - $ - $ - $ - $ - $ - $ - $ - $ - 09-11302 Abitibi-Consolidated Corporation $ (272,303,318) $ 52,000,000 $ (20,303,318) $ (274,054,997) $ 52,000,000 $ (222,054,997) $ (1,751,679) $ - $ (1,751,679) 09-11303 Augusta Woodlands, LLC $ $4,371,680 $ 40,000,000 $ 44,371,680 $ 4,371,680 $ 40,000,000 $ $44,371,680 $ - $ - $ - 09-11304 Tenex Data Inc. $ - $ - $ - $ - $ - $ - $ - $ - $ - 09-11305 Abitibi- Consolidated Finance LP $ 14,168,369 $ 36,309,545 $ 50,477,914 $ 14,168,539 $ 36,309,799 $ 50,478,338 $ 170 $ 254 $ 424 09-11306 Bowater Newsprint South LLC $ (20,773,264) $ - $ (20,773,264) $ (20,800,000) $ - $ (20,800,000) $ (26,736) $ - $ (26,736) 09-11307 Bowater Newsprint South Operations LLC $ (22,935,836) $ - $ (22,935,836) $ (24,081,629) $ - $ (24,081,629) $ (1,145,793) $ - $ (1,145,793) 09-11308 Bowater Finance II LLC $ - $ - $ - $ - $ - $ - $ - $ - $ - 09-11309 Bowater Alabama LLC $ 123,704,597 $ - $ 123,704,597 $ 138,812,149 $ - $ 138,812,149 $ 15,107,552 $ - $ 15,107,552 09-11310 Coosa Pines Golf Club LLC $ $224,694 $ - $ 224,694 $ 190,995 $ - $ 190,995 $ (33,699) $ - $ (33,699) 09-11311 Bowater Incorporated $ 60,426,475 $ 638,842,976 $1,239,269,451 $ 516,671,090 $693,779,434 $ 1,210,450,524 $ (83,755,385) $ 54,936,458 $ (28,818,927) 09-11312 Catawba Property Holdings LLC $ - $ - $ - $ - $ - $ - $ - $ - $ - 09-11314 Bowater Finance Company Inc. $ 11,188 $ 30,060,355 $ 30,071,543 $ 11,188 $ 30,060,355 $ 30,071,543 $ - $ - $ - 09-11315 Bowater South American Holdings Inc. $ - $ - $ - $ - $ - $ - $ - $ - $ - 09-11316 Bowater America Inc. $ (29,839,256) $ - $ (729,839,256) $ (733,406,296) $ - $ (733,406,296) $ (3,567,040) $ - $ (3,567,040) 09-11317 Lake Superior Forest Products Inc. $ (77,581,143) $ - $ (77,581,143) $ (77,530,184) $ - $ (77,530,184) $ 50,959 $ - $ 50,959 09-11319 Bowater Canada Finance Corporation $ (395,972) $ - $ (395,972) $ (15,419,258) $ - $ (15,419,258) $ (15,023,286) $ - $ (15,023,286) 09-11320 Bowater Canadian Holdings Incorporated $ 391,645 $ (51,341,206) $ (50,949,561) $ (42,542) $ (51,472,050) $ (51,514,592) $ (434,187) $ (130,844) $ (565,031) 09-11321 AbitibiBowater Canada Inc. $ (4,932,000) $(329,334,714) $ (334,266,714) $ (5,204,325) $(329,334,714) $ (334,539,039) $ (272,325) $ - $ (272,325) 09-11322 Bowater Canadian Forest Products Inc. $ 304,740,524 $ (12,272,414) $ 292,468,110 $ 424,261,751 $ (45,985,314) $ 378,276,437 $ 119,521,227 $ (33,712,900) $ 85,808,327 09-11324 Bowater Maritimes Inc. $ (50,979,322) $(123,916,667) $ (50,437,125) $ (50,437,125) $(142,801,139) $ (193,238,264) $ 542,197 $ (18,884,472) $ (18,342,275) 09-11325 Bowater LaHave Corporation $ - $ - $ - $ - $ - $ - $ - $ - $ - 09-11326 Bowater Canadian Limited $ (11,900) $ - $ (11,900) $ (13,743) $ - $ (13,743) $ (1,843) $ - $ (1,843) 09-11328 Bowater Nuway Inc. $ 2,702,627 $ 482,605,353 $ 485,307,980 $ 2,572,302 $ 483,363,643 $ 485,935,945 $ (130,325) $ 758,290 $ 627,965 09-11329 Bowater Nuway Mid-states Inc. $ (72,575,089) $ - $ (72,575,089) $( 72,925,591) $ - $ (72,925,591) $ (350,502) $ - $ (350,502) 09-11330 Bowater Ventures Inc. $ (128,110) $ - $ (128,110) $ (128,110) $ - $ (128,110) $ - $ - $ - 09-11331 AbitibiBowater US Holding 1 Corp. $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Canadian Debtors $ 298,142,606 $360,145,231 $ 658,287,837 $ 336,448,829 $ 360,615,908 $697,064,737 $ 38,306,223 $ 470,677 $ 38,776,900 $ - $ - $ - $ - Non-Filing Companies $ (44,455,474) $(73,353,851) $(117,809,325) $(50,025,871) $ (72,405,847) $(122,431,718) $ (5,570,397) $ 948,004 $ (4,622,393) Total $ - $ - $ - $ - $ - $ - $ - $ (0) $ - In re: Abitibibowater Inc., et al., Chapter 11 MOR-12 Debtors’ Questionnaire For the Period April 16, 2009 to May 31, 2009 Yes No 1. Have any assets been sold or transferred outside the normal course of business X this period? If yes, provide an explanation below. 2. Have any funds been disbursed from any account other than a debtor in X possession account this reporting period? If yes, provide an explanation below. 3. Have all post-petition tax returns been timely filed? If no, provide an explanation X below. 4. Are workers compensation, general liability and other necessary Insurance X coverage in effect? If no, provide an explanation below. 5. Has any bank account been opened during the reporting period? If yes, provide X documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3. See MOR-12a for new account listing. In re: Abitibibowater Inc., et al., Chapter 11 MOR-12a Supplement to Debtors’ Questionnaire For Period April 16, 2009 to May 31, 2009 Listing of bank accounts opened during the reporting period. Debtor Bank Name Date Opened Debtor 09-11319, Bowater Canada Finance Corp Wachovia 2003206897892 USD May 2009 Exhibit 99.2
CANADA
SUPERIOR COURT
PROVINCE OF
QUÉBEC
Commercial
Division
IN THE MATTER OF THE PLAN OF COMPROMISE OR ARRANGEMENT
OF:
ABITIBIBOWATER INC. ,
a legal person incorporated under the laws of the State of Delaware,
having its principal executive offices at 1155 Metcalfe Street, in the
City and District of Montréal, Province of Quebec, H3B 5H2; And
ABITIBI-CONSOLIDATED INC. ,
a legal person incorporated under the laws of Canada, having its
principal executive offices at 1155 Metcalfe Street, in the City and
District of Montréal, Province of Quebec, H3B 5H2; And
BOWATER CANADIAN HOLDINGS INC. ,
a legal person incorporated under the laws of the Province of Nova
Scotia, having its principal executive offices at 1155 Metcalfe Street,
in the City and District of Montréal, Province of Quebec, H3B 5H2; And
the other
Petitioners listed on Appendices "A", "B" and "C";
Petitioners And
ERNST & YOUNG INC. ,
a legal person under the laws of Canada, having a place of business at
800 René-Lévesque Blvd. West, Suite 1900, in the City and District of
Montréal, Province of Quebec,
H3B 1X9;
Monitor
NINTH REPORT OF THE MONITOR
July 10, 2009
INTRODUCTION 1.
On April 17, 2009, Abitibi-Consolidated Inc. ("ACI") and
its subsidiaries listed in Appendix "A" hereto (collectively with ACI, the "ACI
Petitioners") and Bowater Canadian Holdings Incorporated ("BCHI") and
its subsidiaries listed in Appendix "B" hereto (collectively with BCHI, the "Bowater
Petitioners") (the ACI Petitioners and the Bowater Petitioners are
collectively referred to herein as the "Petitioners") filed for and
obtained protection from their creditors under the Companies' Creditors
Arrangement Act (the "CCAA" and the "CCAA Proceedings")
pursuant to an Order of this Honourable Court (the "Initial Order"). 2.
Pursuant to the Initial Order, Ernst & Young Inc. (" EYI ")
was appointed as monitor of the Petitioners (the "Monitor") under the
CCAA and a stay of proceedings in favour of the Petitioners was granted until
May 14, 2009 (the "Stay Period"). On May 14, 2009, the Stay Period was
extended until September 4, 2009 pursuant to an Order of this Honourable Court
(the "First Stay Extension Order"). 3.
On April 16, 2009, AbitibiBowater Inc. ("ABH"), Bowater
Inc. ("BI"), and certain of their direct and indirect U.S. and Canadian
subsidiaries, including BCHI and Bowater Canadian Forest
Products
Inc. ("BCFPI") (collectively referred to herein as "U.S. Debtors"),
filed voluntary petitions (collectively, the "Chapter 11 Proceedings")
for relief under Chapter 11 of the U.S. Bankruptcy Code, 11 U.S.C. §§ 101 et
seq. (the "U.S. Bankruptcy Code") in the United States Bankruptcy Court
for the District of Delaware (the "U.S. Bankruptcy Court"). On April 17,
2009, the U.S. Bankruptcy Court granted certain interim and final orders (the "First
Day Orders") and set dates for the final hearing of the motions for which
the U.S. Bankruptcy Court granted the interim orders. 4.
The Petitioners are all subsidiaries of ABH (ABH, collectively
with its subsidiaries, the "ABH Group"). -2- 5.
On April 17, 2009, ABH and the petitioners listed on Appendix "C"
hereto (collectively with ABH, the " 18.6 Petitioners ")
obtained Orders under Section 18.6 of the CCAA in respect of voluntary
proceedings initiated under Chapter 11 and EYI was appointed as the information
officer in respect of the 18.6 Petitioners (the " Information
Officer "). 6.
On April 16, 2009, ACI and ACCC filed petitions for recognition
under Chapter 15 of the U.S. Bankruptcy Code. On April 21, 2009, the U.S.
Bankruptcy Court granted the recognition orders under Chapter 15 of the U.S.
Bankruptcy Code. 7.
On April 22, 2009, the Court amended the Initial Order to extend
the stay of proceedings to the partnerships listed in Appendix "D" hereto. BACKGROUND 8.
ABH is one of the world's largest publicly traded paper and
forest product companies. It produces a wide
range of newsprint and commercial printing papers, market pulp and wood
products . As at December 31, 2008, the ABH Group employed
approximately 15,800 people, approximately 11,300 of which work in ACI's and
BI's Canadian operations. The ABH Group owns interests in or operates 35 pulp
and paper mills, 24 sawmills (others have been permanently closed), 5 wood
products
facilities and 32 recycling facilities located in Canada, the United States, the
United Kingdom and South Korea. 9.
Incorporated in Delaware and headquartered in Montreal, Quebec,
ABH functions as a holding company and its business is conducted principally
through four direct subsidiaries: BI, Bowater Newsprint South LLC ("Newsprint
South") (BI, Newsprint South and their respective subsidiaries are
collectively referred to as the "BI Group"), ACI (ACI and its
subsidiaries are collectively referred to as the " ACI
Group ") and AbitibiBowater US Holding LLC ("ABUSH") (ABUSH and its
respective subsidiaries are collectively referred to as the "DCorp Group"). -3- 10.
ACI is a direct and indirect wholly-owned subsidiary of
ABH. ABH wholly owns BI which in turn, wholly owns BCHI which, in turn,
indirectly owns BCFPI which carries on the main Canadian operations of BI. 11. ACCC,
a wholly-owned subsidiary of ACI, and BCFPI hold the majority of ABH's Canadian
assets and operations.
PURPOSE 12. As
set forth in the First Stay Extension Order, the Monitor has undertaken to
provide this Honourable Court with regular reports on the Petitioners' cash
flows for each four week period following the date of the First Stay Extension
Order. This is the ninth report of the Monitor (the "Ninth Report") in
the CCAA Proceedings, the purpose of which is to provide to this Honourable
Court a report on the Petitioners' four week cash flow results from the period
from June 1, 2009 to June 28, 2009 (the "Reporting Period"), and, in
addition, to provide details with respect to the following:
(i) an update
with respect to the overview of the current market conditions in the forest
products industry provided in the Seventh Report dated June 15, 2009
(the "Seventh Report");
(ii) 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 Monitor's Seventh Report;
(iii) the current
liquidity and revised cash flow forecasts of the ACI Group and BCFPI for the 13
week period through September 27, 2009; and
(iv) an update on certain
executory contracts repudiated by BCFPI.
-4- TERMS OF REFERENCE 13. In
preparing this Ninth 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
Ninth Report. Some of the information referred to in this Ninth 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 Ninth 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. 14. Capitalized
terms not defined in this Ninth Report are as defined in the previous reports of
the Monitor and the Initial Order. All references to dollars are in U.S.
currency unless otherwise noted. 15. Copies
of all of the Monitor's Reports, in both English and French, including a copy of
this Ninth 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. -5-
CURRENT MARKET CONDITIONS IN THE FOREST
PRODUCTS
INDUSTRY 17. As
discussed in the Seventh Report, in order to put the Petitioners' cash flow
results and revised forecasts in context the Monitor believes that it is useful
to provide this Honourable Court with a brief update with respect to significant
changes to the state of market conditions in the paper and forest
products sector in North America since the date of the Seventh
Report. 18. The
Seventh Report provided an overview of the major market segments in which the
Petitioners operate. Market conditions have remained very
challenging
and the Petitioners are continuing to experience demand reductions, pricing
pressures and a Canadian currency exchange rate that adversely impacts their
Canadian operations. 19. Since
the date of the Seventh Report, a number of newsprint manufacturers (White Birch
Paper Company, Kruger Inc., Tembec Inc. and Catalyst Paper Corporation) have
publicly announced price increases of $50 per tonne for newsprint effective
August 1, 2009 as reported in a release on RISI.com, a leading forest products research organization. Given the current
weakness in the newsprint market it is uncertain what the market reaction to
these announced price increases will be, or whether they will hold. The
Petitioners have advised their customers that they will not be matching the $50
per tonne price increase on August 1, 2009 as announced by certain of their
competitors. 20. The
Seventh Report noted several newsprint producers had recently announced
temporary production downtime. The Monitor has been advised that since the date
of the Seventh Report, Catalyst Paper Corporation and Tembec Inc. have each
announced several weeks of production downtime over July and August, 2009 and
that Kruger Inc. has announced the indefinite idling (as of October 30, 2009) of
a coated paper mill in Trois-Rivières. The Petitioners have advised the Monitor
that their temporary production downtime will be approximately 145,000 tonnes
for each of the months of July, August and September, 2009. Such downtime is
consistent with prior months. -6- 21. Overall,
market conditions remain very poor, which is having a severe impact on all
forestry operations, and in particular newsprint operators. As a result, the
Petitioners are reviewing their options to reduce costs in this
challenging
environment.
MONTHLY FINANCIAL INFORMATION 22. The
ACI Group (including DCorp) and ABH produce monthly unaudited accrual financial
statement reports. 23. The
table below details certain line items contained in the combined statement of
operations for the ACI Group and the ABH Group, respectively, for the months of
April and May, 2009:
Unaudited GAAP Financial Results for the ACI Group and
ABH April and May, 2009 168 173 (41) (25)
(99)
(43) 343 363 (23) (14)
(108)
(49)
1155 Metcalfe Street, Suite 800
Montréal, Québec, Canada
H3B 5H2
514 875-2160
NOT APPLICABLE
/s/ Jacques P. Vachon
Title: Senior Vice President,
Corporate Affairs and Chief
Legal Officer
Debtor:
Case No. 09-11296
William G. Harvey
Chief Financial Officer
Debtor
Case No. 09-11296
Debtor
Case No. 09-11296
Debtor
Case No. 09-11296
Debtor
Case No. 09-11296
Debtor
Case No. 09-11296
Debtor:
Case No. 09-11296
Debtor:
Case No. 09-11296
May 31, 2009
Debtor:
Case No. 09-11296
May 31, 2009
Debtor:
Case No. 09-11296
Debtor:
Case No. 09-11296
/s/ William G. Harvey
Title: Senior Vice President Chief Financial Officer
Debtor:
Case No. 09-11296
Debtor:
Case No. 09-11296
Debtor:
Case No. 09-11296
Bowater
Debtor:
Case No. 09-11296
Debtor:
Case No. 09-11296
Debtor:
Case No. 09-11296
Debtor:
Case No. 09-11296
/s/ Joel P. Ihrig
Title: Vice President Taxation
Debtor:
Case No. 09-11296
Debtor:
Case No. 09-11296
Debtor
Case No. 09-11296
Debtor:
Case No. 09-11296
Debtor:
Case No. 09-11296
DISTRICT OF MONTRÉAL
No.: 500-11-036133-094
Sitting as a court designated pursuant to the
Companies' Creditors Arrangement Act,
R.S.C., c. C-36, as amended
ACI Group
US$ Millions
April
May
Sales
Operating Income/(Loss)
Net Income/(Loss)
ABH Group
US$ Millions
April
May
Sales
Operating Income/(Loss)
Net Income/(Loss)
24. The Monitor would point out that the above information is unaudited and is subject to adjustment as part of the Petitioners' normal quarterly close process.
25. As reflected in the above table, the ACI Group (including DCorp) incurred substantial operating losses of $99 and $43 million in the months of April and May, 2009. These losses are reflective of the challenging market conditions discussed previously in this Ninth Report.
-7-
RECEIPTS AND DISBURSEMENTS FROM JUNE 1, 2009 TO JUNE 28, 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 Ninth Report, with a comparison to the ACI Forecast amounts provided in the Monitor's Seventh Report.
|
|
US$000 |
||||||
|
|
Actual |
|
Forecast |
|
Variance |
||
|
Receipts |
181,760 |
178,392 |
3,368 |
||||
|
|
|
|
|
|
|
|
|
|
Disbursements |
|
(228,935) |
|
(189,195) |
|
(39,740) |
|
|
|
|
|
|
||||
|
Financing |
|
|
|
|
|
|
|
|
|
Securitization Inflows / (Outflows) |
|
10,183 |
|
21,507 |
|
(11,324) |
|
|
Securitization Closing Fees |
|
(11,432) |
|
(15,500) |
|
4,068 |
|
|
Adequate Protection by DCorp to ACCC Team Lenders |
|
(17,226) |
|
(14,352) |
|
(2,874) |
DIP Interest & Fees |
(99) |
(143) |
44 |
|||||
Foreign Exchange Translation |
1,111 |
- |
1,111 |
|||||
|
|
Net Financing |
|
(17,463) |
|
(8,488) |
|
(8,975) |
|
Net Cash Flow |
$ |
(64,638) |
$ |
(19,291) |
$ |
(45,347) |
|
|
|
|
|
|
|
|
|
|
Opening Cash |
112,467 |
110,401 |
2,066 |
|||||
|
Ending Cash |
$ |
47,830 |
$ |
91,110 |
$ |
(43,281) |
|
|
|
|
|
|
|
|
|
|
|
DIP Availability (net of minimum undrawn balance) |
57,500 |
57,500 |
- |
||||
|
|
|
|
|
|
|
|
|
|
Available Liquidity |
$ |
105,330 |
$ |
148,610 |
$ |
(43,281) |
27. As demonstrated in the table above, the ACI Group's total receipts for the Reporting Period were $3.4 million (2%) higher than projected in the ACI Forecast and disbursements were $39.7 million (21%) higher than projected in the ACI Forecast. Overall, the ending cash balance was $43.3 million (48%) lower than the ACI Forecast.
-8-
28. Opening cash in the table above has increased due to the fact that the Canadian dollar cash was translated at a rate of CDN$1.00=US$0.80 in the Seventh Report. The table above translates Canadian dollars at a rate of CDN$1.00=US$0.90.
Receipts
29. A breakdown of the receipts for the Reporting Period are outlined in the table below:
|
|
US$000 |
||||||
|
Receipts |
Para. |
|
Actual |
|
Forecast |
|
Variance |
|
A/R Collections |
30(i) |
$ |
141,791 |
$ |
153,335 |
$ |
(11,544) |
|
Intercompany A/R Settlement |
30(i) |
|
5,572 |
|
- |
|
5,572 |
|
Total A/R Collections |
|
|
147,363 |
|
153,335 |
|
(5,972) |
|
Collections on Behalf of Joint Ventures |
30(ii) |
|
959 |
|
16,356 |
|
(15,397) |
|
A/R Collections - Affiliates |
30(iii) |
|
16,154 |
|
- |
|
16,154 |
|
Intercompany A/P Settlement |
30(iv) |
|
11,484 |
|
- |
|
11,484 |
|
Other Inflows |
30(v) |
|
5,800 |
|
8,700 |
|
(2,900) |
|
Total Receipts |
|
$ |
181,760 |
$ |
178,392 |
$ |
3,368 |
30. The variance analysis has been compiled based on discussions with Management and the following represents the more significant reasons for the variances:
(i) Total A/R Collections, inclusive of receipts related to Intercompany A/R Settlements, were approximately $147.4 million during the Reporting Period compared to a forecast amount of $153.3 million.
Intercompany A/R Settlements represent payments to the ACI Group from an affiliate ABH Group entity for ACI Group accounts receivable that were collected by the affiliated entity, such as BI or BCFPI.
-9-
(ii) Collections on Behalf of Joint Ventures totalled approximately $1.0 million. This amount represents accounts receivable collected by the ACI Group which belongs to a joint venture partner that will subsequently be paid over to the joint venture partner in accordance with the joint venture agreement. This amount is compared to a forecast amount of $16.4 million and results in a negative variance of $15.4 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". For example, the ACI Group has estimated that, in the month of June, the ACI Group collected $8.0 million on behalf of their joint venture partners , which has not yet been reflected in the cash flow reports included in Appendix "E" as "Collections on Behalf of Joint Ventures" until account reconciliations are complete. Management has indicated that they intend to settle these amounts on a monthly basis.
(iii) A/R Collections - Affiliates were $16.2 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 is 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 disbursements section of the cash flow statement. As discussed later in this Ninth Report, an amount of approximately $23.4 million was paid out to affiliates during the Reporting Period.
(iv) Receipts related to Intercompany A/P Settlements totalled $11.5 million during the Reporting Period. Such receipts represent other ABH Group entities reimbursing the ACI Group in the normal course for payments made on their behalf as part of the Cash Management System. In order to determine the quantum of funds to be transferred between entities, the Petitioners reconcile amounts paid on behalf of other entities. Such amounts would have originally been included as a disbursement in the Trade Payables line.
-10-
(v) Other Inflows, which include tax refunds and other miscellaneous payments, totalled $5.8 million during the Reporting Period. This is $2.9 million less than the amount in the ACI Forecast.
Disbursements
31. A breakdown of the disbursements for the Reporting Period is outlined below:
|
|
US$000 |
||||||
|
Disbursements |
Para. |
|
Actual |
|
Forecast |
|
Variance |
|
Trade Payables |
32(i) |
$ |
(130,676) |
$ |
(110,068) |
$ |
(20,608) |
|
Capital Expenditures |
32(ii) |
|
- |
|
(6,260) |
|
6,260 |
|
Marine Freight Payments |
|
|
(5,997) |
|
(4,200) |
|
(1,797) |
|
Utility Payments |
|
|
(21,875) |
|
(27,480) |
|
5,605 |
|
Payroll & Benefits |
32(iii) |
|
(28,832) |
|
(21,816) |
|
(7,016) |
|
Intercompany A/R Settlements |
32(iv) |
|
(23,358) |
|
- |
|
(23,358) |
|
Joint Venture Remittances, Net |
|
|
(15,549) |
|
(15,372) |
|
(177) |
|
Restructuring & Other Items |
|
|
(2,648) |
|
(3,998) |
|
1,350 |
|
Total Disbursements |
|
$ |
(228,935) |
$ |
(189,195) |
$ |
(39,740) |
32. 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) Trade Payables disbursements were approximately $130.7 million during the Reporting Period, which was $20.6 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. For the months of April and May, 2009, capital expenditures were $1.2 million and $0.9 million, respectively; and
-11-
(b) The ACI Group regularly disburses amounts on behalf of other affiliated entities which are included in Trade Payable (as noted above, the ACI Group was reimbursed by affiliates for $11.5 million of such amounts 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. The Monitor will provide a separate report in the future with respect to post-filing intercompany transactions since the date of the CCAA filing.
(ii) As indicated 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. The ACI Group is currently analyzing purchases to identify and allocate the capital expenditures for June, 2009.
(iii) Total payments for Payroll & Benefits were $28.8 million during the Reporting Period compared to an amount of approximately $21.8 million in the ACI Forecast. The negative variance is largely due to higher than forecast benefit payments and the fact that certain benefit and tax withholding payments were included as part of Trade Payables disbursements in the ACI Forecast.
(iv) 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 Receipts section of the cash flow statement.
-12-
Financing
33. Details regarding the ACI Group's financing activities are summarized in the following table:
|
|
US$000 |
||||||
|
Financing |
Para. |
|
Actual |
|
Forecast |
|
Variance |
|
Securitization Inflows / (Outflows) |
34(i) |
$ |
10,183 |
$ |
21,507 |
$ |
(11,324) |
Securitization Closing Fees |
34(ii) |
(11,432) |
(15,500) |
4,068 |
||||
Adequate Protection by DCorp to ACCC Term Lenders |
(17,226) |
(14,352) |
(2,874) |
|||||
|
DIP Interest & Fees |
|
|
(99) |
|
(143) |
|
44 |
|
Foreign Exchange Translation |
34(iii) |
|
1,111 |
|
- |
|
1,111 |
|
|
|
$ |
(17,463) |
$ |
(8,488) |
$ |
(8,975) |
34. 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 $10.2 million compared to a projected inflow of $21.5 million during the Reporting Period. The reason for this difference is due to lower availability under the Securitization Program. The table below summarizes the net changes of availability under the Securitization Program borrowing base calculation compared to the assumptions contained in the ACI Forecast.
US$000 | ||||||||
|
Securitization Activity During Reporting Period |
|
Actual |
|
ACI Forecast |
|||
|
Borrowing Base - Opening |
$ |
107,158 |
$ |
107,158 |
|||
Borrowing Base - Closing |
117,983 |
129,404 |
||||||
Net Increase in Availability |
10,825 |
22,246 |
||||||
|
Interest, Fees & Adjustments |
|
(642) |
|
(739) |
|||
|
Securitization Inflows/(Outflows) |
$ |
10,183 |
$ |
21,507 |
The decreased borrowing base availability noted above is due to several factors. These include lower than forecast sales and a higher percentage of ineligible receivables as compared to the ACI Forecast. The higher amount of ineligible receivables was primarily due to an older aging profile of accounts receivable than anticipated, which ineligible receivables are excluded from the borrowing base calculation.
-13-
(ii) Securitization Closing Fees were less than projected as a portion of the closing fees were paid in the week ended July 12, 2009, which is outside of the Reporting Period.
(iii) 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$0.8649 and US$0.9251.
BCFPI
35. The following table summarizes the receipts and disbursements of BCFPI from June 1, 2009 to June 28, 2009, which is detailed in Appendix "F" of this Ninth Report:
|
|
US$000 |
|||||
|
|
Actual |
|
Forecast |
|
Variance |
|
|
Receipts |
$ |
44,895 |
$ |
68,133 |
$ |
(23,238) |
|
Disbursements |
|
(71,604) |
|
(68,834) |
|
(2,770) |
|
|
||||||
|
Cash Flow from Operations |
|
(26,709) |
|
(701) |
|
(26,008) |
|
|
|
|||||
|
Opening Cash |
|
28,065 |
|
27,295 |
|
770 |
|
Ending Cash |
$ |
1,356 |
$ |
26,594 |
$ |
(25,238) |
36. As detailed in the table above, BCFPI's total receipts for the Reporting Period were $23.2 million (34%) lower than the BCFPI Forecast and disbursements were $2.8 million (4%) higher than the BCFPI Forecast. Overall, the ending cash balance was $25.2 million (95%) lower than the BCFPI Forecast.
-14-
Receipts
37. A breakdown of the BCFPI receipts are summarized in the table below:
|
|
US$000 |
||||||
|
Receipts |
Para. |
|
Actual |
|
Forecast |
|
Variance |
|
A/R Collections |
38(i) |
$ |
9,501 |
$ |
68,133 |
$ |
(58,632) |
|
Intercompany A/R Settlements |
38(i) |
|
32,578 |
|
- |
|
32,578 |
|
Total A/R Collections |
|
|
42,079 |
|
68,133 |
|
(26,054) |
|
Other Inflows |
38(ii) |
|
2,816 |
|
- |
|
2,816 |
|
Total Receipts |
|
$ |
44,895 |
$ |
68,133 |
$ |
(23,238) |
38. 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 $42.1 million resulting in a negative variance of approximately $26.1 million. This variance is primarily due to lower than forecast sales in both tonnage and price per tonne terms.
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 their intercompany trade receivables. It is anticipated that further settlements will occur in the coming weeks, which will improve BCFPI's cash position.
(ii) Amounts received related to Other Inflows were approximately $2.8 million during the Reporting Period. Such receipts primarily represent various tax refunds and deposits made at the mill level. BCFPI does not forecast such amounts.
-15-
Disbursements
39. Details regarding disbursements are summarized in the following table:
|
|
US$000 |
||||||
|
Disbursements |
Para. |
|
Actual |
|
Forecast |
|
Variance |
|
Trade Payables |
40(i) |
$ |
(44,032) |
$ |
(46,584) |
$ |
2,552 |
Intercompany SG&A Allocation |
40(ii) |
- |
|
(4,960) |
|
4,960 |
||
Intercompany A/R Settlements |
40(iii) |
(721) |
|
- |
|
(721) |
||
Intercompany A/P Settlements |
40(iv) |
(2,566) |
|
- |
|
(2,566) |
||
Payments on Behalf of Affiliates |
40(v) |
(8,248) |
|
- |
|
(8,248) |
||
Freight |
40(vi) |
(2,728) |
|
(6,624) |
|
3,896 |
||
Payroll & Benefits | 40(vii) |
(12,493) |
|
(7,339) |
|
(5,154) |
||
|
Capital Expenditures |
40(viii) |
|
- |
|
(1,868) |
|
1,868 |
|
Interest | 40(ix) |
|
(816) |
|
(289) |
|
(527) |
|
Restructuring Costs | 40(x) |
|
(396) |
|
(1,171) |
|
775 |
|
Foreign Exchange Translation | 40(xi) |
|
396 |
|
- |
|
396 |
|
Total Disbursements |
|
$ |
(71,604) |
$ |
(68,834) |
$ |
(2,770) |
40. 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 for the variances:
(i) Disbursements related to Trade Payables were $2.6 million less than projected during the Reporting Period. The reason for this variance is primarily due to disbursements made by other ABH Group entities on BCFPI's behalf.
(ii) During the Reporting Period, BCFPI did not pay any amounts in respect of the Intercompany SG&A Allocation as the Q1 allocation and subsequent allocations have not been settled on a cash basis. This resulted in a positive cash flow variance of approximately $5.0 million, which should reverse when intercompany SG&A allocations are settled on a cash basis.
-16-
(iii) Payments for Intercompany A/R Settlements totalled approximately $0.7 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.
(iv) Intercompany A/P Settlements represent BCFPI reimbursing related entities for payments made on its behalf. During the Reporting Period such payments totalled approximately $2.6 million.
(v) Payments on Behalf of Affiliates were $8.2 million during the Reporting Period. These payments primarily represent disbursements made by BCFPI on behalf of the Bowater Mersey Paper Company Ltd. ("Bowater Mersey"), which is a joint venture partially owned by BI. 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 forecast such payments, nor do they forecast the repayment of these items. Management is working on reconciling these accounts so that BCFPI may be reimbursed.
(vi) Disbursements for Freight totalled $2.7 million during the Reporting Period. This compares to an amount of approximately $6.6 million in the BCFPI Forecast. The positive variance is in part due to lower than anticipated sales and the fact the certain amounts are still payable to the ACI Group for freight that it has paid on BCFPI's behalf.
(vii) During the Reporting Period, payments in respect of Payroll and Benefits were $12.5 million. The BCFPI Forecast projected disbursements in the amount of $7.3 million and, as a result, a negative variance of $5.2 million has arisen. This variance is due to earlier than projected payment of the regular monthly pension remittances due at the end of June and higher than projected benefit payments. The reason for this is that a portion of benefit payments were included in the BCFPI Forecast as part of the Trade Payables line.
-17-
(viii) Capital Expenditures are not tracked on a weekly basis. As such, disbursements for this line item have been included in Trade Payables. BCFPI is currently analyzing purchases to identify and allocate capital expenditures. Capital expenditures for April and May, 2009 were $0.5 million and $0.1 million, respectively.
(ix) Payments with respect to Interest totalled $0.8 million during the Reporting Period. The BCFPI Forecast had projected disbursements of $0.3 million, thereby resulting in a difference of $0.5 million. This difference is due to the difference in timing of payment of interest amounts to the BI Bank Syndicate (as defined in the Initial Order).
(x) Restructuring Costs were $0.4 million during the Reporting Period. The BCFPI Forecast had payments of $1.2 million being made. This variance is primarily due to timing and this variance is expected to reverse.
(xi) 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=US$0.90.
CURRENT LIQUIDITY POSITION AND THE 13 WEEK CASH FLOW FORECASTS
41. Attached as Appendices "G" and "H", respectively, are the updated 13 week cash flow forecast of the ACI Group (including DCorp) and BCFPI through September 27, 2009.
-18-
42. The major changes from the cash flow forecasts contained in the Seventh Report are primarily lower newsprint prices and increased downtime due to further weakness in that segment of the Petitioners' business.
43. As at June 28, 2009, the ACI Group had cash on hand of $47.8 million. In addition to this amount, the undrawn portion of the ACI DIP Facility was $70.0 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 $57.5 million. Accordingly, the total liquidity of the ACI Group was $105.3 million ($47.8 million cash plus $57.5 million of the ACI DIP Facility) as at June 28, 2009.
44. On June 29, 2009, the ACI Group made a request of its DIP lender for a draw of $20 million pursuant to the ACI DIP Facility (the "Draw Request"). The Monitor reviewed the Draw Request with the Petitioners and provided the ACI DIP Lender and the Notice Parties (as defined in this Honourable Court's order of May 6, 2009) with evidence of the Monitor's approval of same. The Monitor was advised by Management that the Notice Parties did not object to the Draw Request.
45. The ACI Group's (including DCorp) projected liquidity for the next 13 weeks is set forth in Appendix "G" and is summarized in the graph below.
-19-
46. The ACI Group's liquidity at September 6, 2009 is projected to be $93.8 million, which is $19.4 million lower than in the ACI Forecast contained in the Seventh Report. The primary reason for this decrease is lower newsprint prices and increased downtime relative to the forecast which was included in the Seventh Report.
47. From the date of the CCAA filing to June 28, 2009, the net cash flow for the ACI Group was negative $76.1 million, exclusive of DIP draws.
48. BCFPI had cash on hand of $1.3 million at June 28, 2009. BCFPI's forecast liquidity for the 13 weeks ended September 27, 2009, which includes intercompany funding from BI in the amount of $24.0 million, is set forth in Appendix "H" and is summarized in the graph below. The significant decrease in projected liquidity is primarily due to lower newsprint prices and increased downtime.
49. BCFPI's projected liquidity as at September 6, 2009 is $3.3 million and represents a reduction of $1.7 million from the forecast set forth in the Seventh Report (taking into account the intercompany funding of $19 million). This reduction is primarily a result of further weakness in the newsprint segment as detailed earlier in this Ninth Report.
-20-
50. From the date of the CCAA filing to June 28, 2009, the net cash flow for BCFPI was negative $51.2 million, exclusive of DIP draws and intercompany settlements that are yet to occur. This negative cash flow will be somewhat offset once intercompany accounts are settled with Bowater Mersey.
51. Management has informed the Monitor that BCFPI's forecast cash requirements will be supported by BI through intercompany advances, if necessary.
52. As reported in the Seventh Report, in light of the declining market conditions and the strengthening of Canadian currency and the resultant impact on the ACI Group's and BCFPI's projected liquidity, the ABH Group is reviewing its alternatives to reduce costs and to better balance its mill production to current market demand.
CONTRACT REPUDIATIONS
53. On July 7, 2009, BCFPI, ACCC and ACI repudiated a number of contracts with Boralex Power Income Fund ("Boralex") in accordance with the provisions of the Initial Order. One contract was with respect to the service and maintenance of the Dolbeau cogeneration plant owned by Boralex. A second contract related to the sale of steam by Boralex to the Dolbeau paper mill owned by BCFPI. The remaining contracts relate to biomass supply agreements for the Dolbeau cogeneration plant.
54. One June 25, 2009, Boralex sent a letter advising the Petitioners that Boralex was suspending operations for an indefinite period. As of the date of this Ninth Report, the Dolbeau paper mill is temporarily idled. The Boralex cogeneration plant provides the Petitioners with steam that is required to operate the Dolbeau mill. The Monitor has been advised that the Petitioners have attempted to negotiate new agreements with Boralex on mutually acceptable terms.
55. The Petitioners continue to review their contracts in the context of possible repudiations in order to reduce costs.
-21-
KEY PERFORMANCE INDICATORS
56. The Seventh Report contained certain key performance indicators through May, 2009. The key performance indicators for the month of June were not available at the time of filing this Ninth Report and, as such they will be reported on in a future report of the Monitor.
57. The Monitor will report further to this Honourable Court with respect to the Petitioners' cash flow results and projections in four weeks' time.
All of which is respectfully submitted.
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
Greg Adams, CA, CIRP
Senior Vice President
John F. Barrett, CA, CIRP
Vice President
-22-
APPENDIX "A"
ABITIBI PETITIONERS
1. |
Abitibi-Consolidated Company of Canada |
2. |
Abitibi-Consolidated Inc. |
3. |
3224112 Nova Scotia Limited |
4. |
Marketing Donohue Inc. |
5. |
Abitibi-Consolidated Canadian Office Products Holding Inc. |
6. |
3834328 Canada Inc. |
7. |
6169678 Canada Inc. |
8. |
4042140 Canada Inc. |
9. |
Donohue Recycling Inc. |
10. |
1508756 Ontario Inc. |
11. |
3217925 Nova Scotia Company |
12. |
La Tuque Forest Products Inc. |
13. |
Abitibi-Consolidated Nova Scotia Incorporated |
14. |
Saguenay Forest Products Inc. |
15. |
Terra Nova Explorations Ltd. |
16. |
The Jonquière Pulp Company |
17. |
The International Bridge and Terminal Company |
18. |
Scramble Mining Ltd. |
19. |
9150-3383 Québec Inc. |
-23-
APPENDIX "B"
BOWATER PETITIONERS
1. |
Bowater Canada Finance Corporation |
2. |
Bowater Canadian Limited |
3. |
Bowater Canadian Holdings. Inc. |
4. |
3231378 Nova Scotia Company |
5. |
AbitibiBowater Canada Inc. |
6. |
Bowater Canada Treasury Corporation |
7. |
Bowater Canadian Forest Products Inc. |
8. |
Bowater Shelburne Corporation |
9. |
Bowater LaHave Corporation |
10. |
St-Maurice River Drive Company Limited |
11. |
Bowater Treated Wood Inc. |
12. |
Canexel Hardboard Inc. |
13. |
9068-9050 Québec Inc. |
14. |
Alliance Forest Products Inc. (2001) |
15. |
Bowater Belledune Sawmill Inc. |
16. |
Bowater Maritimes Inc. |
17. |
Bowater Mitis Inc. |
18. |
Bowater Guérette Inc. |
19. |
Bowater Couturier Inc. |
-24-
APPENDIX "C"
18.6 PETITIONERS
1. |
AbitibiBowater US Holding 1 Corp. |
2. |
AbitibiBowater Inc. |
3. |
Bowater Ventures Inc. |
4. |
Bowater Incorporated |
5. |
Bowater Nuway Inc. |
6. |
Bowater Nuway Mid-States Inc. |
7. |
Catawba Property Holdings LLC |
8. |
Bowater Finance Company Inc. |
9. |
Bowater South American Holdings Incorporated |
10. |
Bowater America Inc. |
11. |
Lake Superior Forest Products Inc. |
12. |
Bowater Newsprint South LLC |
13. |
Bowater Newsprint South Operations LLC |
14. |
Bowater Finance II, LLC |
15. |
Bowater Alabama LLC |
16. |
Coosa Pines Golf Club Holdings, LLC |
-25-
APPENDIX "D"
PARTNERSHIPS
1. |
Bowater Canada Finance Limited Partnership |
2. |
Bowater Pulp and Paper Canada Holdings Limited Partnership |
3. |
Abitibi-Consolidated Finance LP |
-26-
APPENDIX "E"
ACI GROUP ACTUAL RECEIPTS AND DISBURSEMENTS
Abitibi-Consolidated Inc. and its Subsidiaries (the "ACI Group") | |||||||||||||||||
Actual to Forecast Comparison | |||||||||||||||||
4 Weeks Ended May 31, 2009 | |||||||||||||||||
US$000 | |||||||||||||||||
Actual | Forecast | Variance | |||||||||||||||
Week Ended | 7-Jun-09 | 14-Jun-09 | 21-Jun-09 | 28-Jun-09 | Total | 7-Jun-09 | 14-Jun-09 | 21-Jun-09 | 28-Jun-09 | Total | 7-Jun-09 | 14-Jun-09 | 21-Jun-09 | 28-Jun-09 | Total | ||
Opening Cash | 112,467 | 107,433 | 94,988 | 70,325 | 112,467 | 110,401 | 116,117 | 124,641 | 90,848 | 110,401 | 2,066 | (8,684) | (29,653) | (20,523) | 2,066 | ||
Receipts | |||||||||||||||||
A/R Collections | 34,621 | 30,018 | 41,756 | 35,396 | 141,791 | 28,945 | 46,998 | 31,478 | 45,914 | 153,335 | 5,676 | (16,980) | 10,278 | (10,518) | (11,544) | ||
Intercompany A/R Settlement | 1,260 | 1,531 | - | 2,781 | 5,572 | - | - | - | - | - | 1,260 | 1,531 | - | 2,781 | 5,572 | ||
Total A/R Collections | 35,881 | 31,549 | 41,756 | 38,177 | 147,363 | 28,945 | 46,998 | 31,478 | 45,914 | 153,335 | 6,936 | (15,449) | 10,278 | (7,737) | (5,972) | ||
Collections on Behalf of Joint Ventures | - | 959 | - | - | 959 | 4,089 | 4,089 | 4,089 | 4,089 | 16,356 | (4,089) | (3,130) | (4,089) | (4,089) | (15,397) | ||
A/R Collections - Affiliates | 3,321 | 3,575 | 3,263 | 5,995 | 16,154 | - | - | - | - | - | 3,321 | 3,575 | 3,263 | 5,995 | 16,154 | ||
Intercompany A/P Settlement | - | 5,883 | - | 5,601 | 11,484 | - | - | - | - | - | - | 5,883 | - | 5,601 | 11,484 | ||
Other Inflows | 816 | 1,356 | 250 | 3,378 | 5,800 | 2,175 | 2,175 | 2,175 | 2,175 | 8,700 | (1,359) | (819) | (1,925) | 1,203 | (2,900) | ||
Total Receipts | 40,018 | 43,322 | 45,269 | 53,151 | 181,760 | 35,209 | 53,262 | 37,743 | 52,178 | 178,392 | 4,809 | (9,940) | 7,526 | 973 | 3,368 | ||
Disbursements | |||||||||||||||||
Trade Payables | (37,263) | (34,574) | (27,142) | (31,697) | (130,676) | (27,517) | (27,517) | (27,517) | (27,517) | (110,068) | (9,746) | (7,057) | 375 | (4,180) | (20,608) | ||
Capital Expenditures | - | - | - | - | - | (1,565) | (1,565) | (1,565) | (1,565) | (6,260) | 1,565 | 1,565 | 1,565 | 1,565 | 6,260 | ||
Marine Freight Payments | (1,009) | (994) | (841) | (3,153) | (5,997) | (1,050) | (1,050) | (1,050) | (1,050) | (4,200) | 41 | 56 | 209 | (2,103) | (1,797) | ||
Utility Payments | (3,622) | (5,856) | (7,380) | (5,017) | (21,875) | (3,870) | (7,870) | (7,870) | (7,870) | (27,480) | 248 | 2,014 | 490 | 2,853 | 5,605 | ||
Payroll & Benefits | (3,227) | (10,247) | (10,284) | (5,074) | (28,832) | (2,083) | (8,650) | (2,433) | (8,650) | (21,816) | (1,144) | (1,597) | (7,851) | 3,576 | (7,016) | ||
Intercompany A/R Settlements | (198) | (3,713) | (590) | (18,857) | (23,358) | - | - | - | - | - | (198) | (3,713) | (590) | (18,857) | (23,358) | ||
Joint Venture Remittances, Net | - | - | (14,950) | (599) | (15,549) | 61 | 61 | (14,657) | (839) | (15,372) | (61) | (61) | (293) | 240 | (177) | ||
Restructuring & Other Items | (547) | (494) | (439) | (1,168) | (2,648) | (1,000) | (1,000) | (1,000) | (1,000) | (3,998) | 453 | 506 | 561 | (168) | 1,350 | ||
Total Disbursements | (45,866) | (55,878) | (61,626) | (65,565) | (228,935) | (37,023) | (47,590) | (56,091) | (48,490) | (189,195) | (8,843) | (8,288) | (5,535) | (17,075) | (39,740) | ||
Financing | |||||||||||||||||
Securitization Inflows / (Outflows) | 1,050 | 253 | 19,765 | (10,885) | 10,183 | 7,530 | 2,996 | 14,408 | (3,427) | 21,507 | (6,480) | (2,743) | 5,357 | (7,458) | (11,324) | ||
Securitization Closing Fees | - | - | (11,432) | - | (11,432) | - | - | (15,500) | - | (15,500) | - | - | 4,068 | - | 4,068 | ||
Adequate Protection by DCorp to ACCC Term Lenders | - | - | (17,226) | - | (17,226) | - | - | (14,352) | - | (14,352) | - | - | (2,874) | - | (2,874) | ||
DIP Drawings / (Repayments) | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||
DIP Interest & Fees | (99) | - | - | - | (99) | - | (143) | - | - | (143) | (99) | 143 | - | - | 44 | ||
Foreign Exchange Translation | (138) | (142) | 587 | 804 | 1,111 | - | - | - | - | - | (138) | (142) | 587 | 804 | 1,111 | ||
813 | 111 | (8,306) | (10,081) | (17,463) | 7,530 | 2,853 | (15,444) | (3,427) | (8,488) | (6,717) | (2,742) | 7,138 | (6,654) | (8,975) | |||
Cash Flow From Operations | (5,035) | (12,445) | (24,663) | (22,495) | (64,638) | 5,716 | 8,525 | (33,793) | 262 | (19,291) | (10,751) | (20,970) | 9,130 | (22,756) | (45,347) | ||
Opening Cash Balance | 112,467 | 107,433 | 94,988 | 70,325 | 112,467 | 110,401 | 116,117 | 124,641 | 90,848 | 110,401 | 2,066 | (8,684) | (29,653) | (20,523) | 2,066 | ||
Cash Flow From Operations | (5,035) | (12,445) | (24,663) | (22,495) | (64,638) | 5,716 | 8,525 | (33,793) | 262 | (19,291) | (10,751) | (20,970) | 9,130 | (22,756) | (45,347) | ||
Ending Cash Balance | 107,432 | 94,988 | 70,325 | 47,830 | 47,830 | 116,117 | 124,641 | 90,848 | 91,110 | 91,110 | (8,685) | (29,654) | (20,523) | (43,280) | (43,281) | ||
Note: The above totals are subject to rounding adjustments | |||||||||||||||||
-27-
APPENDIX "F"
BCFPI ACTUAL RECEIPTS AND DISBURSEMENTS
Bowater Canadian Forest Products Inc. ("BCFPI") | |||||||||||||||||
Actual to Forecast Comparison | |||||||||||||||||
4 Weeks Ended June 28, 2009 | |||||||||||||||||
US$000 | |||||||||||||||||
Actual | Forecast | Variance | |||||||||||||||
Week Ended | 7-Jun-09 | 14-Jun-09 | 21-Jun-09 | 28-Jun-09 | Total | 7-Jun-09 | 14-Jun-09 | 21-Jun-09 | 28-Jun-09 | Total | 7-Jun-09 | 14-Jun-09 | 21-Jun-09 | 28-Jun-09 | Total | ||
Opening Cash | 28,065 | 26,469 | 19,685 | 3,113 | 28,065 | 27,295 | 38,782 | 32,327 | 28,763 | 27,295 | 770 | (12,313) | (12,642) | (25,650) | 770 | ||
Receipts | |||||||||||||||||
A/R Collections | 2,192 | 3,487 | 2,423 | 1,399 | 9,501 | 26,372 | 13,159 | 13,067 | 15,535 | 68,133 | (24,180) | (9,672) | (10,644) | (14,136) | (58,632) | ||
Intercompany A/R Settlements | 12,540 | 4,106 | 4,065 | 11,867 | 32,578 | - | - | - | - | - | 12,540 | 4,106 | 4,065 | 11,867 | 32,578 | ||
Total A/R Collections | 14,732 | 7,593 | 6,488 | 13,266 | 42,079 | 26,372 | 13,159 | 13,067 | 15,535 | 68,133 | (11,640) | (5,566) | (6,579) | (2,269) | (26,054) | ||
A/R Collections - Affiliates | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||
Other Inflows | 192 | 1,794 | 602 | 228 | 2,816 | - | - | - | - | - | 192 | 1,794 | 602 | 228 | 2,816 | ||
Total Receipts | 14,924 | 9,387 | 7,090 | 13,494 | 44,895 | 26,372 | 13,159 | 13,067 | 15,535 | 68,133 | (11,448) | (3,772) | (5,977) | (2,041) | (23,238) | ||
Disbursements | |||||||||||||||||
Trade Payables | (10,587) | (10,256) | (14,019) | (9,170) | (44,032) | (11,271) | (11,271) | (11,271) | (12,771) | (46,584) | 684 | 1,015 | (2,748) | 3,601 | 2,552 | ||
Intercompany SG&A Allocation | - | - | - | - | - | - | (3,926) | (517) | (517) | (4,960) | - | 3,926 | 517 | 517 | 4,960 | ||
Intercompany A/R Settlements | (77) | (81) | - | (563) | (721) | - | - | - | - | - | (77) | (81) | - | (563) | (721) | ||
Intercompany A/P Settlements | - | (2,228) | - | (338) | (2,566) | - | - | - | - | - | - | (2,228) | - | (338) | (2,566) | ||
Payments on Behalf of Affiliates | (867) | (828) | (5,826) | (727) | (8,248) | - | - | - | - | - | (867) | (828) | (5,826) | (727) | (8,248) | ||
Freight | (1,318) | (432) | (413) | (565) | (2,728) | (1,656) | (1,656) | (1,656) | (1,656) | (6,624) | 338 | 1,224 | 1,243 | 1,091 | 3,896 | ||
Payroll and Benefits | (3,066) | (2,262) | (3,737) | (3,428) | (12,493) | (1,199) | (2,001) | (2,138) | (2,001) | (7,339) | (1,867) | (261) | (1,599) | (1,427) | (5,154) | ||
Capital Expenditures | - | - | - | - | (467) | (467) | (467) | (467) | (1,868) | 467 | 467 | 467 | 467 | 1,868 | |||
Interest | (469) | - | - | (347) | (816) | - | - | (289) | - | (289) | (469) | - | 289 | (347) | (527) | ||
Restructuring Costs | - | - | - | (396) | (396) | (293) | (293) | (293) | (293) | (1,171) | 293 | 293 | 293 | (103) | 775 | ||
Foreign Exchange Translation | (136) | (84) | 333 | 283 | 396 | - | - | - | - | - | (136) | (84) | 333 | 283 | 396 | ||
Total Disbursements | (16,520) | (16,171) | (23,662) | (15,251) | (71,604) | (14,885) | (19,614) | (16,630) | (17,705) | (68,834) | (1,635) | 3,443 | (7,032) | 2,454 | (2,770) | ||
Cash Flow From Operations | (1,596) | (6,784) | (16,572) | (1,757) | (26,709) | 11,487 | (6,455) | (3,564) | (2,170) | (701) | (13,083) | (329) | (13,009) | 413 | (26,008) | ||
Opening Cash Balance | 28,065 | 26,469 | 19,685 | 3,113 | 28,065 | 27,295 | 38,782 | 32,327 | 28,763 | 27,295 | 770 | (12,313) | (12,642) | (25,650) | 770 | ||
Cash Flow From Operations | (1,596) | (6,784) | (16,572) | (1,757) | (26,709) | 11,487 | (6,455) | (3,564) | (2,170) | (701) | (13,083) | (329) | (13,009) | 413 | (26,008) | ||
Ending Cash Balance | 26,469 | 19,685 | 3,113 | 1,356 | 1,356 | 38,782 | 32,327 | 28,763 | 26,594 | 26,594 | (12,313) | (12,642) | (25,651) | (25,237) | (25,237) | ||
Note: The above totals are subject to rounding adjustments | |||||||||||||||||
-28-
APPENDIX "G"
ACI GROUP CASH FLOW FORECAST
Abitibi-Consolidated Inc. ("ACI") | |||||||||||||||||
Weekly Cash Flow Forecast | |||||||||||||||||
13 Weeks Ended September 27, 2009 | |||||||||||||||||
US$000s | |||||||||||||||||
Week ended | Notes | 5-Jul-09 | 12-Jul-09 | 19-Jul-09 | 26-Jul-09 | 2-Aug-09 | 9-Aug-09 | 16-Aug-09 | 23-Aug-09 | 30-Aug-09 | 6-Sep-09 | 13-Sep-09 | 20-Sep-09 | 27-Sep-09 | Total | ||
Opening Cash | 1 | 47,829 | 43,468 | 66,001 | 62,865 | 79,989 | 81,264 | 88,894 | 66,448 | 63,410 | 55,552 | 56,301 | 52,291 | 76,552 | 47,829 | ||
Receipts | |||||||||||||||||
Total A/R Collections | 3 | 37,969 | 34,901 | 43,219 | 62,292 | 52,981 | 35,602 | 28,423 | 34,275 | 30,052 | 39,621 | 29,462 | 39,203 | 28,348 | 496,349 | ||
Collections on Behalf of Joint Ventures | 4 | 3,308 | 3,139 | 3,139 | 3,139 | 3,202 | 3,358 | 3,358 | 3,358 | 3,358 | 4,133 | 4,262 | 4,262 | 4,262 | 46,278 | ||
Other Inflows | 5 | 2,175 | 5,849 | 11,393 | 6,981 | 4,797 | 4,311 | 2,175 | 2,175 | 2,175 | 2,175 | 2,175 | 38,175 | 2,175 | 86,730 | ||
Total Receipts | 43,452 | 43,889 | 57,751 | 72,413 | 60,980 | 43,271 | 33,956 | 39,808 | 35,585 | 45,929 | 35,898 | 81,640 | 34,785 | 629,356 | |||
Disbursements | |||||||||||||||||
Trade Payables | 6 | (31,427) | (25,716) | (25,716) | (25,716) | (24,448) | (25,655) | (25,655) | (25,655) | (25,655) | (26,811) | (27,338) | (27,338) | (27,338) | (344,465) | ||
Capital Expenditures | 7 | (1,516) | (1,496) | (1,496) | (1,496) | (1,496) | (1,496) | (1,496) | (1,496) | (1,496) | (1,539) | (1,546) | (1,546) | (1,546) | (19,660) | ||
Marine Freight Payments | 8 | (1,050) | (1,050) | (1,050) | (1,050) | (1,050) | (1,050) | (1,050) | (1,050) | (1,050) | (1,050) | (1,050) | (1,050) | (1,050) | (13,650) | ||
Utility Payments | 9 | (5,013) | (3,870) | (7,870) | (7,870) | (6,727) | (3,870) | (7,870) | (7,870) | (7,870) | (4,441) | (3,870) | (7,870) | (7,870) | (82,881) | ||
Payroll & Benefits | 10 | (4,691) | (7,864) | (2,171) | (1,821) | (10,698) | (1,927) | (7,893) | (1,927) | (7,543) | (4,810) | (8,292) | (2,369) | (8,292) | (70,299) | ||
Joint Venture Remittances, Net | 11 | 50 | 47 | (15,936) | (853) | 48 | 50 | (13,852) | 50 | (850) | 62 | 64 | (14,807) | (836) | (46,763) | ||
Restructuring & Other Items | 12 | (1,000) | (1,000) | (1,000) | (1,000) | (1,000) | (1,000) | (1,000) | (1,000) | (1,000) | (1,000) | (1,000) | (1,000) | (1,000) | (13,000) | ||
Total Disbursements | (44,647) | (40,948) | (55,239) | (39,806) | (45,371) | (34,947) | (58,816) | (38,947) | (45,464) | (39,590) | (43,032) | (55,980) | (47,932) | (590,718) | |||
Financing | |||||||||||||||||
Securitization Inflows / (Outflows) | 13 | 2,223 | (407) | (5,648) | (15,484) | (10,590) | (694) | 2,415 | (3,899) | 2,021 | (1,826) | 3,123 | (1,398) | 3,379 | (26,787) | ||
Adequate Protection and fees by DCorp to ACCC Term Lenders | 14 | (681) | - | - | - | (3,537) | - | - | - | - | (3,537) | - | - | - | (7,755) | ||
DIP Drawings / (Repayments) | 15 | - | 20,000 | - | - | - | - | - | - | - | - | - | - | - | 20,000 | ||
DIP Interest & Fees | 15 | (149) | - | - | - | (206) | - | - | - | - | (228) | - | - | - | (583) | ||
Securitization Closing Fees | 16 | (4,558) | - | - | - | - | - | - | - | - | - | - | - | - | (4,558) | ||
Total Change in Cash | (4,361) | 22,533 | (3,136) | 17,123 | 1,275 | 7,630 | (22,446) | (3,038) | (7,858) | 749 | (4,011) | 24,262 | (9,768) | 18,956 | |||
Ending Cash Balance (with ACI DIP Facility Draws) | 43,468 | 66,001 | 62,865 | 79,989 | 81,264 | 88,894 | 66,448 | 63,410 | 55,552 | 56,301 | 52,291 | 76,552 | 66,785 | 66,785 | |||
Available Liquidity (Cash and Undrawn DIP) | 17 | 100,968 | 103,501 | 100,365 | 117,489 | 118,764 | 126,394 | 103,948 | 100,910 | 93,052 | 93,801 | 89,791 | 114,052 | 104,285 | 104,285 | ||
Securitization Schedule | 18 | ||||||||||||||||
Allowable Receivable Pool Balance | 120,205 | 120,591 | 114,943 | 99,459 | 88,869 | 88,175 | 91,304 | 87,405 | 89,426 | 87,601 | 91,393 | 89,995 | 93,374 | 93,374 | |||
Interest, Fees and Adjustments | 19 | - | (794) | - | - | - | - | (714) | - | - | - | (670) | - | - | (2,179) | ||
Amount Drawn Under Facility | 117,982 | 120,205 | 120,591 | 114,943 | 99,459 | 88,869 | 88,175 | 91,304 | 87,405 | 89,426 | 87,601 | 91,393 | 89,995 | 117,982 | |||
Availability / (Required Repayment) | 2,223 | (407) | (5,648) | (15,484) | (10,590) | (694) | 2,415 | (3,899) | 2,021 | (1,826) | 3,123 | (1,398) | 3,379 | (26,787) | |||
The above forecast uses an exchange rate of CDN$1.00=US$0.90. | |||||||||||||||||
Note: The above totals are subject to rounding adjustments in the underlying balances. | |||||||||||||||||
The information and analysis in this document have not been audited or reviewed and, according, no assurances are provided thereon. In addition, because forecasts are dependent upon numerous assumptions regarding future events, actual results will be different than forecast, and such differences may be material. |
-33-
Abitibi Consolidated Inc. and its subsidiaries (the "ACI Group")
Notes to Weekly Cash Flow Forecast
13 Weeks Ended September 27, 2009
US$000s
1. |
Opening Cash in the forecast includes cash on hand. |
2. |
The cash flow forecast includes mills owned by the ACI Group and its subsidiaries and includes the operations of the DCorp Group. |
3. |
Total A/R Collections represent amounts estimated to be collected from the ACI Group's customers. The timing of collections is based on the ACI Group's collection terms with its customers and the latest sales forecast. |
4. |
Collections on Behalf of Joint Ventures represent amounts estimated to be collected by the ACI Group on behalf of its joint venture partners. The ACI Group has agreements with its joint venture partners whereby the ACI Group collects the joint venture partners' accounts receivable (for a fee) and remits these funds to the joint venture in accordance with their agreement. |
5. |
Other Inflows represent miscellaneous receipts, including, but not limited to such items as tax refunds or insurance proceeds, as estimated by the ACI Group. |
6. |
Trade Payables represent amounts estimated to be paid to suppliers for the purchase of the ACI Group's raw materials, repairs and maintenance and other goods and services related to production. This line also includes amounts necessary to fund the DCorp Group's recycling operations. |
7. |
Capital Expenditures represent amounts estimated to be paid pursuant to the ACI Group's most recent capital expenditure budget. |
8. |
Marine Freight Payments represent amounts estimated to be paid to the ACI Group's outbound marine freight suppliers. |
9. |
Utility Payments represent amounts estimated to be payable to the ACI Group's hydroelectricity suppliers. |
10. |
Payroll and Benefits represent estimated amounts for salaries, wages and current service pension costs. |
11. |
Joint Venture Remittances, Net represent the estimated payment of accounts receivable funds collected by the ACI Group on behalf of the respective joint venture, net of any collection/management fees. |
12. |
Restructuring and Other Items represent amounts estimated by the ACI Group for restructuring costs and other miscellaneous payments. |
13. |
Securitization Inflows/(Outflows) represent the estimated net availability or repayment (including interest) of funds under the ACI Group's Amended Securitization Program. |
14. |
Adequate Protection and fees by DCorp to ACCC Term Lenders represents an estimate of payments pursuant to the adequate protection order issued by the U.S. Bankruptcy Court. |
15. |
The DIP Drawings/(Repayments) and the DIP Interest & Fees represent cash flows related to the ACI Group's $100 million DIP term loan. This term loan may be drawn in increments to enable the ACI Group to maintain a adequate amount of working capital. |
16. |
The Securitization Closing Fees include fees on the Amended Securitization Program and closing advisory fees payable by the ACI Group. |
17. |
Available Liquidity is calculated as cash on hand plus the undrawn portion of the ACI DIP Facility. Drawings on the ACI DIP Facility are limited to $87.5 million per the terms of the ACI DIP Agreement. |
18. |
The Securitization Summary represents the ACI Group's estimated calculation of amounts owing or available under the Amended Securitization Program based on the eligible accounts receivable (net of any fees, interest or allowances). |
19. |
The Interest & Fees represent interest and fees related to the Amended Securitization Program. |
-34-
APPENDIX "H"
BCFPI CASH FLOW FORECAST
Bowater Canadian Forest Products Inc. ("BCFPI") | |||||||||||||||||
Chapter 11/CCAA Cash Flow | |||||||||||||||||
13 Weeks Ended September 27, 2009 | |||||||||||||||||
US$000s | |||||||||||||||||
Week ended | 5-Jul-09 | 12-Jul-09 | 19-Jul-09 | 26-Jul-09 | 2-Aug-09 | 9-Aug-09 | 16-Aug-09 | 23-Aug-09 | 30-Aug-09 | 6-Sep-09 | 13-Sep-09 | 20-Sep-09 | 27-Sep-09 | Total | |||
Receipts |
Notes |
||||||||||||||||
Trade Receipts | 1, 10 | 26,957 | 15,205 | 14,054 | 17,354 | 14,320 | 14,836 | 12,224 | 13,767 | 14,238 | 12,649 | 12,075 | 12,356 | 11,859 | 191,893 | ||
Other Receipts | 2 | - | - | - | - | 3,000 | 2,000 | 5,000 | 3,000 | 4,000 | 2,000 | 2,000 | 2,000 | 1,000 | 24,000 | ||
Total Receipts | 26,957 | 15,205 | 14,054 | 17,354 | 17,320 | 16,836 | 17,224 | 16,767 | 18,238 | 14,649 | 14,075 | 14,356 | 12,859 | 215,893 | |||
Disbursements | |||||||||||||||||
Trade Payables | 3 | (10,631) | (10,720) | (10,720) | (10,720) | (11,042) | (11,845) | (11,845) | (11,845) | (11,845) | (9,652) | (9,286) | (8,286) | (8,286) | (136,725) | ||
Intercompany SG&A Allocation | 4 | (0) | (5,902) | (464) | (464) | (467) | (474) | (474) | (474) | (474) | (475) | (476) | (476) | (476) | (11,093) | ||
Freight | 5 | (1,130) | (1,210) | (1,210) | (1,210) | (1,164) | (1,050) | (1,050) | (1,050) | (1,050) | (1,015) | (1,009) | (1,009) | (1,009) | (14,167) | ||
Payroll & Benefits | 6 | (4,014) | (1,873) | (2,830) | (1,873) | (3,439) | (2,448) | (3,405) | (2,448) | (3,405) | (3,059) | (2,099) | (3,758) | (2,099) | (36,747) | ||
Capital Expenditures | 7 | (456) | (452) | (452) | (452) | (452) | (452) | (452) | (452) | (452) | (465) | (467) | (467) | (467) | (5,933) | ||
Interest | 8 | (901) | - | - | (699) | (880) | - | - | (338) | (880) | - | - | - | (422) | (4,119) | ||
Restructuring Costs | 9 | (293) | (293) | (293) | (293) | (1,293) | (293) | (293) | (293) | (293) | (293) | (293) | (293) | (293) | (4,803) | ||
Total Disbursements | (17,424) | (20,449) | (15,968) | (15,711) | (18,736) | (16,561) | (17,518) | (16,899) | (18,398) | (14,958) | (13,629) | (14,288) | (13,051) | (213,588) | |||
Cash Flow from Operations | 9,533 | (5,245) | (1,914) | 1,644 | (1,416) | 275 | (294) | (132) | (160) | (308) | 446 | 67 | (191) | 2,305 | |||
Opening Bank Balance | 1,358 | 10,891 | 5,646 | 3,732 | 5,376 | 3,960 | 4,235 | 3,941 | 3,809 | 3,649 | 3,341 | 3,787 | 3,854 | 1,358 | |||
Cash Flow | 9,533 | (5,245) | (1,914) | 1,644 | (1,416) | 275 | (294) | (132) | (160) | (308) | 446 | 67 | (191) | 2,305 | |||
Closing Bank Balance | 10 | 10,891 | 5,646 | 3,732 | 5,376 | 3,960 | 4,235 | 3,941 | 3,809 | 3,649 | 3,341 | 3,787 | 3,854 | 3,663 | 3,663 | ||
Current Revolving Credit Facility | |||||||||||||||||
Current Credit Facility Balance, Opening | 94,337 | 94,337 | 94,337 | 94,337 | 94,337 | 94,337 | 94,337 | 94,337 | 94,337 | 94,337 | 94,337 | 94,337 | 94,337 | 94,337 | |||
Current Credit facility Drawings / (Repayments) | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||
Current Balance, Closing | 94,337 | 94,337 | 94,337 | 94,337 | 94,337 | 94,337 | 94,337 | 94,337 | 94,337 | 94,337 | 94,337 | 94,337 | 94,337 | 94,337 | |||
Intercompany A/R Balance | 11 | ||||||||||||||||
Ending Balance | 59,314 | 60,706 | 62,528 | 62,176 | 62,389 | 61,264 | 61,300 | 60,581 | 59,702 | 60,192 | 61,071 | 61,746 | 62,603 |
62,603
|
|||
The above forecast uses an exchange rate of CDN$1.00=US$0.90. | |||||||||||||||||
Amounts in the above table are subject to rounding adjustments from the underlying balances. | |||||||||||||||||
The information and analysis in this document have not been audited or reviewed and, according, no assurances are provided thereon. In addition, because forecasts are dependent upon numerous assumptions regarding future events, actual results will be different than forecast, and such difference may be material. |
-35-
Bowater Canadian Forest Products Inc. ("BCFPI")
Notes to CCAA Cash Flow
13 Week Period Ended September 27, 2009
US$000s
1. |
Trade Receipts are based on BCFPI's estimate of collection terms and BCFPI's latest sales forecast. |
2. |
Other receipts represents a transfer of funds to BCFPI from Bowater Inc. persuant to the BI/BCFPI DIP Facility. |
3. |
Trade Payables represent payments for raw materials, repairs and maintenance, utilities and other production items. |
4. |
Intercompany SG&A Allocation represents expenses incurred by BCFPI's parent company on behalf of BCFPI which are charged to BCFPI starting the week ended August 12, 2009, pursuant to its normal process for the allocation of such costs. These intercompany SG&A costs are assumed to be settled in cash on a weekly basis. |
5. |
Freight represents disbursements in respect of costs to deliver product to customers. |
6. |
Payroll and Benefits represent amounts paid to employees for salaries and wages (including the related withholdings), pension payments and other benefits due under employee benefit programs. The forecast assumes that only those pension payments in respect of current service costs will be paid. |
7. |
Capital Expenditures are costs scheduled to be made in accordance with agreements with BCFPI's various capital equipment suppliers and reflect requirements pursuant to BCFPI's most recent capital expenditure budget. |
8. |
Interest represents interest costs for the company's senior secured revolving facility, the existing secured term loan and the new DIP facility. |
9. |
Restructuring Costs represent costs related to the restructuring including transaction fees related to the new DIP facility. |
10. |
The cash flows included in the forecast include only those BCFPI mills in Canada. No funding or dividends from foreign subsidiaries are included in the forecast. |
11. |
The intercompany accounts receivable balance represents pre-filing and post-filing sales to customers in the United States by BCFPI through Bowater America Inc. This amount is assumed not to be stayed and is collected by BCFPI from Bowater America Inc. in the normal course. This balance represents trade A/R only and does not represent any amounts funded from BI to BCFPI persuant to the BI/BCFPI DIP Facility. |
-36-
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