8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  September 30, 2009

ABITIBIBOWATER INC.

(Exact name of Registrant as Specified in Charter)

Delaware	001-33776	98-0526415
(State or other Jurisdiction of Incorporation or Organization)	(Commission File Number)	(I.R.S. Employer Identification Number)

AbitibiBowater Inc. 1155 Metcalfe Street, Suite 800 Montreal, Quebec Canada	H3B 5H2
(Address of principal executive offices)	(Zip Code)
(514) 875-2160
(Registrant's telephone number, including area code)

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

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 September 30, 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 August 1, 2009 to August 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 October 6, 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 "Canadian Petitioners"), under the Companies Creditors Arrangement Act (Canada).  The purpose of the Monitor's Report is to provide the Canadian Court with a report on (A) the four week cash flow results of the Canadian Petitioners for the period from August 24, 2009 to September 20, 2009 and to provide details on (i) an update regarding the overview of the current market conditions in the forest products industry provided in the fifteenth report of the Monitor dated September 2, 2009, (ii) the receipts and disbursements of Abitibi-Consolidated Inc. and its subsidiaries and Bowater Canadian Forest Products Inc. for the reporting period with a discussion of the variances from the respective forecasts set forth in the fifteenth report of the Monitor, (iii) the current liquidity and revised cash flow forecasts of Abitibi-Consolidated Inc. and its subsidiaries and Bowater Canadian Forest Products Inc. for the 13-week period ended December 20, 2009 and (iv) an update with respect to certain key performance indicators, (B) the sale of certain de minimis assets formerly owned by Bowater Canadian Forest Products Inc. and (C) an update on the claims procedure (as described in the fourteenth report of the Monitor).  A copy of the Monitor's Report is attached as Exhibit 99.2 and is incorporated by reference herein.

2

The Monitor's Report is limited in scope, covers a limited time period, and has been prepared solely for the purpose of the Canadian 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
		99.1	Monthly Operating Report for the Period August 1, 2009 to August 31, 2009, dated September 30, 2009.
		99.2	Seventeenth Report of the Monitor, dated October 5, 2009.

3

Signature

Pursuant to the requirements of the Securities Exchange Act of l934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	ABITIBIBOWATER INC.
	By:	/s/ Jacques P. Vachon
Dated: October 6, 2009		Name: Jacques P. Vachon
		Title: Senior Vice-President, Corporate Affairs and Chief Legal Officer

4

	Exhibit Index
Exhibit No.	Description of Exhibit
99.1	Monthly Operating Report for the Period August 1, 2009 to August 31, 2009, dated September 30, 2009.
99.2	Seventeenth Report of the Monitor, dated October 5, 2009.

5

EX-99

Exhibit 99.1

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In re: Abitibibowater Inc., et al.,	Chapter 11
	Case No. 09-11296
Debtor:

Monthly Operating Report

For the Period August 1, 2009 to August 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	September 30, 2009
Signature of Authorized Individual*	Date
William G. Harvey	Executive Vice President & Chief Financial Officer
Printed 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 August 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 August 1st, 2009 through August 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 August 31st, 2009, the components of Liabilities Subject to Compromise consisted of:

Unsecured debt	$ 2,938,339,830
Accounts Payable	81,034,561
OPEB & Pension	614,150,912
Liabilities Subject to Compromise	$ 3,633,525,303

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
	Case No. 09-11296
Debtor

MOR-1

Debtors Consolidating Schedule of Receipts and Disbursements (1)

For the Period August 1, 2009 through August 31, 2009

(Dollars in Thousands)

 

	All Debtor's Grand Totals		AbitibiBowater Inc.		AbitibiBowater US Holding LLC		Donohue Corp.		Abitibi Consolidated Sales Corporation (ASCS)		Abitibi- Consolidated Alabama Corporation		Alabama River Newsprint Company (ARNC)		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
			No Accounts		No Accounts						No Accounts								No Accounts
Beginning Cash Balance	$	401,580	$	-	$	-	$	1	$	7,402	$	-	$	776	$	231	$	273	$	-	$	51
Total Cash Receipts	$	812,259	$	-	$	-	$	-	$	182,101	$	-	$	4,479	$	12,600	$	273	$	-	$	-
Total Cash Disbursements	$	(813,508)	$	-	$	-	$	-	$	(179,378)	$	-	$	(3,979)	$	(12,147)	$	(273)	$	-	$	(0)
Ending Cash Balance	$	400,331	$	-	$	-	$	1	$	10,125	$	-	$	1,275	$	685	$	273	$	-	$	51

 

	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	$	11	$	-	$	16	$	-	$	373,281	$	-	$	3	$	-	$	-	$	46
Total Cash Receipts	$	-	$	1	$	-	$	2,551	$	-	$	417,596	$	-	$	-	$	-	$	-	$	34
Total Cash Disbursements	$	-	$	(10)	$	-	$	(2,561)	$	-	$	(418,658)	$	-	$	-	$	-	$	-	$	(79)
Ending Cash Balance	$	1	$	2	$	-	$	6	$	-	$	372,219	$	-	$	3	$	-	$	-	$	2

 

In re: Abitibibowater Inc., et al.,	Chapter 11
	Case No. 09-11296
Debtor

MOR-1  (Continued)

Debtors Consolidating Schedule of Receipts and Disbursements (1)

For the Period August 1, 2009 through August 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
Beginning Cash Balance	$	3	$	13	$	2	$	18,441	$	263	$	44	$	718	$	2	$	-	$	2	$	0
Total Cash Receipts	$	-	$	-	$	-	$	192,041	$	584	$	-	$	-	$	-	$	-	$	-	$	-
Total Cash Disbursements	$	(1)	$	(1)	$	(0)	$	(195,806)	$	(604)	$	(0)	$	(11)	$	(0)	$	-	$	(0)	$	(0)
Ending Cash Balance	$	3	$	12	$	1	$	14,675	$	243	$	44	$	707	$	2	$	-	$	2	$	0

 

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 presented in this cash flow was prepared using bank account statements as supplied to the debtors from the banks and therefore the ending cash balance on MOR-1 may not agree with the ending cash balance on MOR-6. 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.
(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)	All amounts are stated in U.S. Dollars. Accounts normally stated in Canadian Dollars, British Pounds, or Euros have been converted to USD at August 31, 2009 foreign exchange rates.

In re: Abitibibowater Inc., et al.,	Chapter 11
	Case No. 09-11296
Debtor

MOR-1a

Debtors Consolidated Schedule of Receipts and Disbursements (1)

For the Period August 1, 2009 through August 31, 2009

(Dollars in Thousands)

 

	All Debtor's Grand Totals		AbitibiBowater Inc.		AbitibiBowater US Holding LLC		Donohue Corp.		Abitibi Consolidated Sales Corporation (ASCS)		Abitibi- Consolidated Alabama Corporation		Alabama River Newsprint Company (ARNC)		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
			No Accounts		No Accounts						No Accounts								No Accounts
Total Cash Receipts	$	285,469	$	-	$	-	$	-	$	96,929	$	-	$	487	$	2,871	$	-	$	-	$	-
Disbursements:
Payroll & Payroll Taxes	$	(29,295)
Non-Payroll Labor	$	(5,578)											$	(12)
Raw Materials	$	(61,039)													$	(9,063)
Utilities	$	(18,322)											$	(139)	$	-
Freight	$	(22,684)							$	(1,319)			$	(1)	$	-
SG&A	$	(20,119)							$	(157)			$	(646)
Supplies	$	(14,735)											$	(73)
Rent	$	(207)							$	-
Customer Rebates	$	(4,312)							$	(437)
Interest	$	(16,225)							$	(12,171)
Security Deposits	$	-
Taxes	$	(128)											$	(2)
Other	$	(1,600)											$	-	$
Total Cash Disbursements	$	(194,245)	$	-	$	-	$	-	$	(14,084)	$	-	$	(874)	$	(9,063)	$	-	$	-	$	-

 

Notes:
(1)	MOR 1-a represents the cash flow of the current operating accounts used by the debtors.
(2)	MOR 1-a excludes $1.15 billion of intercompany cash settlements, and $48.5 million of currency exchange transactions.
(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 cash flow 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. Accounts normally stated in Canadian Dollars, British Pounds, or Euros have been converted to USD at August 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
	Case No. 09-11296
Debtor

MOR-1a (continued)

Debtors Consolidating Schedule of Receipts and Disbursements (1)

For the Period August 1, 2009 through August 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)
	09-11306		09-11307		09-11308		09-11309		09-11310		09-11311		09-11312		09-11314		09-11315		09-11316
					No Accounts				No Accounts				No Accounts				No Accounts		No Accounts
Total Cash Receipts	$	-	$	1	$	-	$	2,551	$	-	$	159,394	$	-	$	-	$	-	$	-
Disbursements:
Payroll & Payroll Taxes											$	(18,298)
Non-Payroll Labor											$	(4,572)
Raw Materials											$	(37,550)
Utilities											$	(12,608)
Freight	$	(712)					$	(243)			$	(6,279)							$	(8,884)
SG&A											$	(13,422)							$	(17)
Supplies											$	(12,508)
Rent											$	(193)
Customer Rebates											$	(734)							$	(3,004)
Interest											$	(2,900)
Security Deposits											$	-
Taxes
Other	$										$	(1,600)
Total Cash Disbursements	$	(712)	$	-	$	-	$	(243)	$	-	$	(110,665)	$	-	$	-	$	-	$	(11,904)

Notes:
(1)	MOR 1-a represents the cash flow of the current operating accounts used by the debtors.
(2)	MOR 1-a excludes $1.15 billion of intercompany cash settlements, and $48.5 million of currency exchange transactions.
(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 cash flow 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. Accounts normally stated in Canadian Dollars, British Pounds, or Euros have been converted to USD at August 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
	Case No. 09-11296
Debtor

MOR-1a (continued)

Debtors Consolidating Schedule of Receipts and Disbursements (1)

For the Period August 1, 2009 through August 31, 2009

(Dollars in Thousands)

 

	Lake Superior Forest Products Inc.		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
	09-11317		09-11319		09-11320		09-11321		09-11322		09-11324		09-11325		09-11326		09-11328		09-11329		09-11330		09-11331
																			No Accounts
Total Cash Receipts	$	-	$	-	$	-	$	-	$	23,220	$	15	$	-	$	-	$	-	$	-	$	-	$	-
Disbursements:
Payroll & Payroll Taxes									$	(10,997)
Non-Payroll Labor									$	(978)	$	(16)
Raw Materials									$	(14,426)
Utilities									$	(5,527)	$	(49)
Freight									$	(5,243)	$	(2)
SG&A									$	(5,763)	$	(113)
Supplies									$	(2,153)
Rent									$	(14)
Customer Rebates									$	(138)
Interest									$	(1,154)
Security Deposits									$	-
Taxes									$	(127)
Other									$	-
Total Cash Disbursements	$	-	$	-	$	-	$	-	$	(46,518)	$	(181)	$	-	$	-	$	-	$	-	$	-	$	-

 

Notes:
(1)	MOR 1-a represents the cash flow of the current operating accounts used by the debtors.
(2)	MOR 1-a excludes $1.15 billion of intercompany cash settlements, and $48.5 million of currency exchange transactions.
(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 cash flow 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. Accounts normally stated in Canadian Dollars, British Pounds, or Euros have been converted to USD at August 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
	Case No. 09-11296
Debtor

MOR-2

Schedule of Cash Disbursements by Debtor Entity

(Dollars in Thousands)

Debtor Entity	Notes	Bankruptcy Case Number		Disbursements for the Period August 1, 2009 to August 31, 2009 (1)
AbitibiBowater Inc.	(2)	09-11296	$	-
AbitibiBowater US Holding LLC	(2)	09-11297	$	-
Donohue Corp.	(2)	09-11298	$	-
Abitibi Consolidated Sales Corporation (ASCS)		09-11299	$	14
Abitibi-Consolidated Alabama Corporation	(2)	09-11300	$	-
Alabama River Newsprint Company (ARNC)		09-11301	$	1
Abitibi-Consolidated Corporation		09-11302	$	9
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	$	1
Bowater Newsprint South Operations LLC	(2)	09-11307	$	-
Bowater Finance II, LLC	(2)	09-11308	$	-
Bowater Alabama LLC	(2)	09-11309	$	0
Coosa Pines Golf Club, LLC	(2)	09-11310	$	-
Bowater Incorporated		09-11311	$	111
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	$	12
Lake Superior Forest Products Inc.	(2)	09-11317	$	-
Bowater Canada Finance Corporation	(2)	09-11319	$	-
Bowater Canadian Holdings Incorporated	(2)	09-11320	$	-
AbitibiBowater Canada Inc.	(2)	09-11321	$	-
Bowater Canadian Forest Products Inc.		09-11322	$	47
Bowater Maritimes Inc.		09-11324	$	0
Bowater LaHave Corporation	(2)	09-11325	$	-
Bowater Canadian Limited	(2)	09-11326	$	-
Bowater Nuway Inc.	(2)	09-11328	$	-
Bowater Nuway Mid-States Inc.	(2)	09-11329	$	-
Bowater Ventures Inc.	(2)	09-11330	$	-
AbitibiBowater US Holding 1 Corp	(2)	09-11331	$	-
	Total Disbursements		$	194

Notes:
(1)	Disbursement amounts in the bank accounts include all payments issued during the period, excluding inter-company cash settlements and transfers between accounts of $1.15 billion, and $48.5 million in currency exchange.  Any disbursements made in Canadian Dollars have been converted to USD at month-end exchange rates.
(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
	Case No. 09-11296
Debtor

MOR-3

Schedule of Debtors Bank Account Balances

(Dollars in Thousands)

Case #		Debtor Entity	Bank Name	Bank Account Ending In:	Curr $		Bank Balance @ August 31, 2009
09	11298	Donohue Corp (DNC)	Bank of America	6296	USD	$	1
09	11299	Abitibi Cons Sales Corp (ACSC)	Bank of America	1568	USD	$	6,906
09	11299	Abitibi Cons Sales Corp (ACSC)	Bank of America	1576	USD	$	955
09	11299	Abitibi Cons Sales Corp (ACSC)	Bank of America	6171	USD	$	-
09	11299	Abitibi Cons Sales Corp (ACSC)	Bank of America	2316	USD	$	1
09	11299	Abitibi Cons Sales Corp (ACSC)	Bank of America	2696	USD	$	2,264
09	11301	Alabama River Newsprint Company	Regions	8852	USD	$	30
09	11301	Alabama River Newsprint Company	Regions	8852-I	USD	$	1,241
09	11301	Alabama River Newsprint Company	Regions	6609	USD	$	1
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	$	203
09	11302	Abitibi-Consolidated Corporation	Bank of America	9128	USD	$	1
09	11302	Abitibi-Consolidated Corporation	Bank of America	2704	USD	$	-
09	11302	Abitibi-Consolidated Corporation	Bank of America	8511	USD	$	-
09	11302	Abitibi-Consolidated Corporation	Bank of America	0430	USD	$	399
09	11302	Abitibi-Consolidated Corporation	Bank of America	0429	USD	$	11
09	11302	Abitibi-Consolidated Corporation	Bank of America	7832	USD	$	52
09	11302	Abitibi-Consolidated Corporation	Bank of America	9656	USD	$	0
09	11302	Abitibi-Consolidated Corporation	Bank of America	2388	USD	$	18
09	11303	Augusta Woodlands LLC	Wachovia	7669	USD	$	-
09	11303	Augusta Woodlands LLC	Bank of America	3020	USD	$	273
9	11305	Abitibi-Consolidated Finance LP	CIBC	4615	USD	$	51
09	11306	Bowater Newsprint South LLC	Wachovia	7229	USD	$	1
09	11307	Bowater Newsprint South Ops (BNSO)	Regions Bank	9429	USD	$	2
09	11309	Bowater Alabama (BALI)	Coosa Pines Federal Credit Union	2022	USD	$	6
09	11311	Bowater Incorporated (BI)	Wachovia	9066	USD	$	313,643
09	11311	Bowater Incorporated (BI)	Wachovia	3394	USD	$	-
09	11311	Bowater Incorporated (BI)	Wachovia	7224	USD	$	2
09	11311	Bowater Incorporated (BI)	Wachovia London	8026	USD	$	(0)
09	11311	Bowater Incorporated (BI)	Wachovia London	8036	GBP	$	7,956
09	11311	Bowater Incorporated (BI)	Wachovia London	8166	EUR	$	4,533
09	11311	Bowater Incorporated (BI)	Bank of America	2618	USD	$	3,232
09	11311	Bowater Incorporated (BI)	Bank of America	5097	USD	$	69
09	11311	Bowater Incorporated (BI)	Wells Fargo	0687	USD	$	243
09	11311	Bowater Incorporated (BI)	Wells Fargo	3255	USD	$	-
09	11311	Bowater Incorporated (BI)	Wells Fargo	3274	USD	$	-
09	11311	Bowater Incorporated (BI)	Wells Fargo	3289	USD	$	-
09	11311	Bowater Incorporated (BI)	Wells Fargo	3293	USD	$	-
09	11311	Bowater Incorporated (BI)	Bank of New York	3002	USD	$	231
09	11311	Bowater Incorporated (BI)	Bank of New York	5679	USD	$	-
09	11311	Bowater Incorporated (BI)	Bank of New York	5229	USD	$	-
09	11311	Bowater Incorporated (BI)	Bank of New York	6153	USD	$	1,206
09	11311	Bowater Incorporated (BI)	Regions Bank	3536	USD	$	21
09	11311	Bowater Incorporated (BI)	BB&T	1324	USD	$	60
09	11311	Bowater Incorporated (BI)	BB&T	6446	USD	$	5
09	11311	Bowater Incorporated (BI)	SunTrust	1261	USD	$	33
09	11311	Bowater Incorporated (BI)	JPMorgan Chase	4478	USD	$	597
09	11311	Bowater Incorporated (BI)	Arrowpoint Fed CU	2195	USD	$	0

In re: Abitibibowater Inc., et al.,	Chapter 11
	Case No. 09-11296
Debtor

MOR-3

Schedule of Debtors Bank Account Balances

(Dollars in Thousands)

Case #		Debtor Entity	Bank Name	Bank Account Ending In:	Curr $		Bank Balance @ August 31, 2009
09	11311	Bowater Incorporated (BI)	Carolina First	2882	USD	$	18,423
09	11311	Bowater Incorporated (BI)	Wachovia	9438	USD	$	15,000
09	11314	Bowater Finance Company	Wachovia	7062	USD	$	3
09	11317	Lake Superior Forest Products Inc.	Bank of America	1105	USD	$	2
09	11319	Bowater Canada Finance Corporation	Wachovia	7892	USD	$	2
09	11319	Bowater Canada Finance Corporation	Wachovia	9074	USD	$	0
09	11319	Bowater Canada Finance Corporation	Wachovia	7143	USD	$	1
09	11320	Bowater Canadian Holdings Incorporated	Wachovia	9382	USD	$	1
09	11320	Bowater Canadian Holdings Incorporated	Toronto Dominion	5387	CAD	$	12
09	11321	AbitibiBowater Canada Inc.	Wachovia	7711	USD	$	1
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Bank of Montreal	0135	USD	$	2,560
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Bank of Montreal	2181	CAD	$	1,844
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Bank of Montreal	0811	CAD	$	14
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Bank of Montreal	5945	CAD	$	-
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Bank of Montreal	8611	CAD	$	(0)
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Bank of Montreal	5990	USD	$	345
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Bank of Montreal	9511	CAD	$	1,942
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Bank of Montreal	7609	CAD	$	70
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Bank of Montreal	1445	USD	$	172
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Bank of Montreal	2392	USD	$	74
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Toronto Dominion	4845	USD	$	514
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Toronto Dominion	6782	CAD	$	4,729
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Toronto Dominion	9460	CAD	$	-
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Toronto Dominion	9428	CAD	$	-
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Toronto Dominion	9444	CAD	$	-
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Toronto Dominion	7762	CAD	$	-
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Toronto Dominion	8039	CAD	$	-
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Toronto Dominion	3089	CAD	$	319
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Toronto Dominion	7746	CAD	$	-
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Toronto Dominion	7754	CAD	$	-
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Bank of America	0351	USD	$	611
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Bank of America	3801	USD	$	-
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Bank of America	0364	USD	$	40
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Banque Nationale du Canada	0027	CAD	$	68
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Bank of Nova Scotia	5412	CAD	$	2
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Bank of Nova Scotia	4114	CAD	$	429
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Wachovia	9531	USD	$	2
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Wachovia London	8036	GBP	$	705
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Lloyds of London	2394	GBP	$	364
09	11322	Bowater Canadian Forest Products Inc. (BCFPI)	Lloyds of London	9992	GBP	$	5
09	11324	Bowater Maritimes Inc. (DAL)	Bank of Montreal	5982	USD	$	41
09	11324	Bowater Maritimes Inc. (DAL)	Bank of Montreal	5889	CAD	$	220
09	11324	Bowater Maritimes Inc. (DAL)	Bank of Montreal	8603	CAD	$	-
09	11325	Bowater LaHave Corporation	Wachovia	6638	USD	$	44
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	$	2
09	11330	Bowater Ventures Inc.	Wachovia	9612	USD	$	0
09	11330	Bowater Ventures Inc.	Wachovia	7148	USD	$	2
09	11331	AbitibiBowater US Holding 1 Corp.	Wachovia	9155	USD	$	0

In re: Abitibibowater Inc., et al.,	Chapter 11
	Case No. 09-11296
Debtor:

MOR-4

Schedule of Professional Fees and Expenses Paid ⁽¹⁾

For the Period August 1, 2009 to August 31, 2009

Professional Firm	Amount Paid This Period Fees & Expenses		Cumulative Amount Paid Fees & Expenses
Paul, Weiss, Rifkind, Wharton & Garrison LLP	$	2,815,465	$	2,815,465
Young Conaway Stargatt & Taylor, LLP		330,460		330,460
PricewaterhouseCoopers LLP, U.S.		305,992		305,992
Epiq Systems		223,614		223,614
Totals	$	3,675,531	$	3,675,531

Notes:

(1)  Professional fees include payments to professionals or consultants not in the ordinary course.

In re: Abitibibowater Inc., et al.,	Chapter 11
	Case No. 09-11296
Debtor:

MOR-5

Declaration Regarding the Reconciliation of the Debtors' Bank Accounts

                As of August 31, 2009                    

William G. Harvey hereby declares under penalty of perjury:  

1. 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.  

2. I am authorized to submit this Declaration of behalf of the Debtors.  

3. I hereby certify that the Debtor and all affiliated Debtors are reconciled on a regular and timely basis.  

Dated:  September 30, 2009                Respectfully submitted, 

                                                               /s/ William G. Harvey                                                         

                                                               By:  William G. Harvey

                                                               Title:  Executive Vice President Chief Financial Officer

In re: Abitibibowater Inc., et al.,	Chapter 11
	Case No. 09-11296
Debtor:

MOR-6

Debtor Consolidating Balance Sheet

As of August 31, 2009

	AbitibiBowater Inc. 09-11296			AbitibiBowater US Holding LLC 09-11297		Donohue Corp. 09-11298		Abitibi Consolidated Sales Corporation 09-11299		Abitibi-Consolidated Alabama Corporation 09-11300		Alabama River Newsprint Company 09-11301		Abitibi-Consolidated Corporation 09-11302		Augusta Woodlands, LLC 09-11303		Tenex Data Inc. 09-11304		Abitibi-Consolidated Finance LP 09-11305
ASSETS
Cash and Cash Equivalents	$	-	$	-	$	568	$	12,857,908	$	-	$	1,246,417	$	(663,679)	$	273,430	$	-	$	51,112
Receivables Net	$	-	$	-	$	-	$	2,278,567	$	4,495,764	$	871,471	$	8,976,447	$	-	$	-	$	-
Inventories	$	-	$	-	$	-	$	43,089,640	$	-	$	1,131,552	$	2,376,211	$	-	$	-	$	-
Prepaid Expense and Other	$	147,070	$	-	$	-	$	(564,061)	$	-	$	281,026	$	(74,766)	$	-	$	-	$	-
Note Receivable from Affiliates	$	394,952,232	$	-	$	504,283,518	$	272,252,367	$	-	$	-	$	92,000,000	$	-	$	-	$	36,310,682
Income Tax Receivable	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Deferred Income Taxes	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Total Current Assets	$	395,099,302	$	-	$	504,284,086	$	329,914,421	$	4,495,764	$	3,530,466	$	102,614,213	$	273,430	$	-	$	36,361,794
Plant and Equipment	$	-	$	-	$	-	$	12,893,386	$	898,483	$	(16,743,281)	$	89,860,624	$	24,877	$	-	$	-
Less Accumulated depreciation	$	-	$	-	$	-	$	(6,796,757)	$	(898,483)	$	(8,988,086)	$	(9,749,474)	$	-	$	-	$	-
Plant and Equipment - Net	$	-	$	-	$	-	$	6,096,629	$	-	$	(25,731,367)	$	80,111,150	$	24,877	$	-	$	-
Goodwill/Intangible Assets	$	-	$	-	$	-	$	43,769	$	-	$	-	$	50,244	$	-	$	-	$	-
Investment in Subsidiaries	$	3,151,180,483	$	688,900,001	$	1,257,832,309	$	337,578,979	$	221,189,750	$	-	$	31,483,052	$	-	$	-	$	-
Other Assets	$	11,956,371	$	-	$	-	$	15,645,874	$	-	$	-	$	(5,844,366)	$	-	$	-	$	-
Total Assets	$	3,558,236,156	$	688,900,001	$	1,762,116,395	$	689,279,672	$	225,685,514	$	(22,200,901)	$	208,414,293	$	298,307	$	-	$	36,361,794
LIABILITIES AND SHAREHOLDERS' EQUITY
Trade Accounts Payable	$	-	$	-	$	-	$	12,190,141	$	(4,261,332)	$	9,346	$	3,635,474	$	(2)	$	-	$	-
Accrued Liabilities	$	3,048,773	$	-	$	(40,995,700)	$	64,939,138	$	2,741	$	5,511,633	$	4,577,565	$	-	$	-	$	-
Current Portion of Long Term Debt	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Due to Affiliates	$	72,350,183	$	-	$	35,676,309	$	(64,993,201)	$	(12,468,749)	$	738,615	$	319,816,443	$	(4,371,680)	$	-	$	(14,168,882)
Income Tax Payable	$	(30,739,868)	$	(11,987,501)	$	8,568,264	$	14,105,093	$	(3,999,490)	$	-	$	(29,724,923)	$	(17,890)	$	-	$	-
Total Current Liabilities	$	44,659,088	$	(11,987,501)	$	3,248,873	$	26,241,171	$	(20,726,830)	$	6,259,594	$	298,304,559	$	(4,389,572)	$	-	$	(14,168,882)
Long Term Debt	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Reclassification to Current Portion	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Long Term debt net of Current Installments	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Loans from Affiliates	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Other Liabilities	$	(1)	$	-	$	1	$	19,812,641	$	-	$	2,689,455	$	123,857,491	$	-	$	-	$	1
Deferred Income Taxes	$	(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	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	7,819,943
Debt Affiliate	$	755,625,050	$	824,029,721	$	-	$	457,588,908	$	257,216,639	$	-	$	-	$	-	$	-	$	382,179
Accounts payable	$	-	$	-	$	-	$	869,488	$	-	$	1,713,139	$	5,058,089	$	-	$	-	$	-
Other	$	1,999,504	$	-	$	-	$	16,521,101	$	(1)	$	15,854,877	$	20,626,149	$	-	$	-	$	-
Total Liabilities	$	1,096,892,396	$	800,244,285	$	(5,678,312)	$	479,918,926	$	263,272,698	$	26,517,065	$	244,856,813	$	(4,389,572)	$	-	$	(5,966,759)
Shareholder Equity net	$	2,461,343,760	$	(111,344,284)	$	1,767,794,707	$	209,360,746	$	(37,587,184)	$	(48,717,966)	$	(36,442,520)	$	4,687,879	$	-	$	42,328,553
Total Liabilities and Shareholders' Equity	$	3,558,236,156	$	688,900,001	$	1,762,116,395	$	689,279,672	$	225,685,514	$	(22,200,901)	$	208,414,293	$	298,307	$	-	$	36,361,794

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
	Case No. 09-11296
Debtor:

MOR-6 (continued)

Debtor Consolidating Balance Sheet

As of August 31, 2009

	Bowater Newsprint South LLC 09-11306			Bowater Newsprint South Operations LLC 09-11307		Bowater Finance II LLC 09-11308		Bowater Alabama LLC 09-11309		Coosa Pines Golf Club LLC 09-11310		Bowater Incorporated 09-11311		Catawba Property Holdings LLC 09-11312		Bowater Finance Company Inc. 09-11314		Bowater South American Holdings Inc. 09-11315		Bowater America Inc. 09-11316		Lake Superior Forest Products Inc. 09-11317
ASSETS
Cash and Cash Equivalents	$	-	$	4,425	$	-	$	6,888	$	-	$	360,049,754	$	-	$	2,714	$	-	$	-	$	1,732
Receivables Net	$	-	$	7,033,931	$	-	$	5,713,855	$	-	$	111,653,411	$	-	$	-	$	-	$	74,847,451	$	-
Inventories	$	-	$	11,388,397	$	-	$	42,197,503	$	-	$	103,644,969	$	-	$	-	$	-	$	3,167,606	$	-
Prepaid Expense and Other	$	-	$	1,298,287	$	-	$	4,718,058	$	-	$	43,658,148	$	-	$	-	$	-	$	-	$	-
Note Receivable from Affiliates	$	-	$	-	$	-	$	-	$	-	$	1,048,467,630	$	-	$	30,060,355	$	-	$	-	$	-
Income Tax Receivable	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Deferred Income Taxes	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Total Current Assets	$	-	$	19,725,040	$	-	$	52,636,304	$	-	$	1,667,473,912	$	-	$	30,063,069	$	-	$	78,015,057	$	1,732
Plant and Equipment	$	-	$	376,413,800	$	-	$	466,506,505	$	1,792,022	$	2,728,617,356	$	-	$	-	$	-	$	3,403,000	$	-
Less Accumulated depreciation	$	-	$	(185,422,765)	$	-	$	(202,354,033)	$	(1,537,249)	$	(2,013,883,801)	$	-	$	-	$	-	$	(3,403,000)	$	-
Plant and Equipment - Net	$	-	$	190,991,035	$	-	$	264,152,472	$	254,773	$	714,733,555	$	-	$	-	$	-	$	-	$	-
Goodwill/Intangible Assets	$	-	$	-	$	-	$	-	$	-	$	1,354,447	$	-	$	-	$	-	$	9,100,000	$	-
Investment in Subsidiaries	$	-	$	-	$	-	$	-	$	-	$	2,644,548,256	$	-	$	(3,010,119)	$	-	$	10,009,164	$	92,055,661
Other Assets	$	-	$	1,716	$	-	$	-	$	-	$	67,734,171	$	-	$	-	$	-	$	-	$	-
Total Assets	$		$	210,717,791	$	-	$	316,788,776	$	254,773	$	5,095,844,341	$	-	$	27,052,950	$	-	$	97,124,221	$	92,057,393
LIABILITIES AND SHAREHOLDERS' EQUITY
Trade Accounts Payable	$	-	$	1,338,737	$	-	$	6,041,290	$	-	$	34,360,543	$	-	$	-	$	-	$	-	$	-
Accrued Liabilities	$	-	$	4,014,098	$	-	$	11,992,250	$	15,950	$	43,639,655	$	-	$	-	$	-	$	4,503,235	$	(11,980,000)
Current Portion of Long Term Debt	$	-	$	-	$	-	$	-	$	-	$	163,940,000	$	-	$	-	$	-	$	-	$	-
Due to Affiliates	$	21,600,000	$	25,046,141	$	-	$	(141,424,069)	$	(247,694)	$	(711,087,337)	$	-	$	(11,188)	$	-	$	683,106,550	$	77,369,458
Income Tax Payable	$	-	$	-	$	-	$	-	$	-	$	45,267,851	$	-	$	-	$	-	$	-	$	-
Total Current Liabilities	$	21,600,000	$	30,398,976	$	-	$	(123,390,529)	$	(231,744)	$	(423,879,288)	$	-	$	(11,188)	$	-	$	687,609,785	$	65,389,458
Long Term Debt	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Reclassification to Current Portion	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Long Term debt net of Current Installments	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Loans from Affiliates	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Other Liabilities	$	2,000,000	$	103,097	$	-	$	534,719	$	(2)	$	10,322,073	$	-	$	(1)	$	-	$	(2)	$	-
Deferred Income Taxes	$	77,447,000	$	(5,396,946)	$	-	$	57,051,055	$	(55,865)	$	4,547,631	$	-	$	-	$	-	$	3,613,398	$	10,063,421
Liabilities subject to Compromise																						-
Debt	$	-	$	4,583,540	$	-	$	-	$	-	$	1,608,547,938	$	-	$	-	$	-	$	-	$	-
Debt Affiliate	$	-	$	-	$	-	$	-	$	-	$	507,614,925	$	-	$	-	$	-	$	-	$	-
Accounts payable	$	-	$	1,742,300	$	-	$	12,896,291	$	-	$	28,553,370	$	-	$	-	$	-	$	-	$	-
Other	$	-	$	9,926,350	$	-	$	64,573,691	$	7	$	347,322,968	$	-	$	-	$	-	$	(1)	$	-
Total Liabilities	$	101,047,000	$	41,357,317	$	-	$	11,665,227	$	(287,604)	$	2,083,029,617	$	-	$	(11,189)	$	-	$	691,223,180	$	75,452,879
Shareholder Equity net	$	(101,047,000)	$	169,360,474	$	-	$	305,123,549	$	542,377	$	3,012,814,724	$	-	$	27,064,139	$	-	$	(594,098,959)	$	16,604,514
Total Liabilities and Shareholders' Equity	$	-	$	210,717,791	$	-	$	316,788,776	$	254,773	$	5,095,844,341	$	-	$	27,052,950	$	-	$	97,124,221	$	92,057,393

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
	Case No. 09-11296
Debtor:

MOR-6 (continued)

Debtor Consolidating Balance Sheet

As of August 31, 2009

	Bowater Canada Finance Corporation 09-11319			Bowater Canadian Holdings Incorporated 09-11320		AbitibiBowater Canada Inc. 09-11321		Bowater Canadian Forest Products Inc. 09-11322		Bowater Maritimes Inc. 09-11324		Bowater LaHave Corporation 09-11325		Bowater Canadian Limited 09-11326		Bowater Nuway Inc. 09-11328		Bowater Nuway Mid-states Inc. 09-11329		Bowater Ventures Inc. 09-11330		Abitibi Bowater US Holding 1 Corp. 09-11331		Grand Total
ASSETS
Cash and Cash Equivalents	$	1,746	$	12,701	$	2,103	$	11,103,133	$	133,893	$	44,206	$	707,099	$	2,176	$	-	$	1,537	$	-	$	385,839,863
Receivables Net	$	-	$	-	$	-	$	86,924,502	$	114,360	$	-	$	-	$	-	$	(15,100)	$	-	$	-	$	302,894,659
Inventories	$	-	$	-	$	-	$	102,903,100	$	228,983	$	-	$	-	$	37,097	$	196,180	$	-	$	-	$	310,361,238
Prepaid Expense and Other	$	-	$	-	$	-	$	6,743,086	$	307,430	$	-	$	-	$	(32,500)	$	89,149	$	-	$	-	$	56,570,927
Note Receivable from Affiliates	$	-	$	47,403,209	$	-	$	471,578,381	$	-	$	-	$	-	$	484,021,968	$	-	$	-	$	-	$	3,381,330,342
Income Tax Receivable	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Deferred Income Taxes	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Total Current Assets	$	1,746	$	47,415,910	$	2,103	$	679,252,202	$	784,666	$	44,206	$	707,099	$	484,028,741	$	270,229	$	1,537	$	-	$	4,436,997,029
Plant and Equipment	$	-	$	-	$	-	$	1,689,689,976	$	6,818,139	$	-	$	-	$	363,434	$	23,233,538	$	-	$	-	$	5,383,771,859
Less Accumulated Depreciation	$	-	$	-	$	-	$	(1,036,956,445)	$	(1,746,740)	$	-	$	-	$	(169,921)	$	(18,367,535)	$	-	$	-	$	(3,490,274,289)
Plant and Equipment - Net	$	-	$	-	$	-	$	652,733,531	$	5,071,399	$	-	$	-	$	193,513	$	4,866,003	$	-	$	-	$	1,893,497,570
Goodwill/Intangible Assets	$	-	$	-	$	-	$	46,899,000	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	57,447,460
Investment in Subsidiaries	$	818,915,994	$	2,789,294,859	$	1,641,734,485	$	967,690,735	$	-	$	79,809,309	$	7,116,144	$	5,100,000	$	-	$	820,283	$	-	$	14,742,249,345
Other Assets	$	1,225,459	$	-	$	-	$	88,031,078	$	9,688,068	$	-	$	-	$	-	$	-	$	-	$	-	$	188,438,371
Total Assets	$	820,143,199	$	2,836,710,769	$	1,641,736,588	$	2,434,606,546	$	15,544,133	$	79,853,515	$	7,823,243	$	489,322,254	$	5,136,232	$	821,820	$	-	$	21,318,629,775
LIABILITIES AND SHAREHOLDERS' EQUITY
Trade Accounts Payable	$	-	$	-	$	-	$	13,166,199	$	5,906	$	-	$	-	$	62,355	$	20,517	$	-	$	-	$	66,569,174
Accrued Liabilities	$	-	$	(353,339)	$	5,572	$	48,157,903	$	(82,020)	$	-	$	-	$	(3,303)	$	198,712	$	-	$	-	$	137,192,863
Current Portion of Long Term Debt	$	-	$	-	$	-	$	42,060,000	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	206,000,000
Due to Affiliates	$	456,797	$	688,621	$	5,663,041	$	(153,683,935)	$	51,400,996	$	-	$	13,712	$	(2,611,876)	$	73,134,309	$	128,110	$	-	$	262,120,674
Income Tax Payable	$	(718,696)	$	(1)	$	1	$	173,968	$	10,254	$	-	$	110,392	$	-	$	-	$	-	$	-	$	(8,952,546)
Total Current Liabilities	$	(261,899)	$	335,281	$	5,668,614	$	(50,125,865)	$	51,335,136	$	-	$	124,104	$	(2,552,824)	$	73,353,538	$	128,110	$	-	$	662,930,165
Long Term Debt	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Reclassification to Current Portion	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Long Term debt net of Current Installments	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Loans from Affiliates	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Other Liabilities	$	(3)	$	3	$	-	$	21,645,990	$	5,942,119	$	(1)	$	(1)	$	2,524,068	$	100,003	$	-	$	-	$	189,531,650
Deferred Income Taxes	$	14,288,026	$	-	$	15,871,347	$	32,949	$	127,676	$	-	$	(108,102)	$	(794,126)	$	8,388,413	$	-	$	-	$	(54,640,551)
Liabilities subject to Compromise
Debt	$	637,293,221	$	-	$	-	$	383,816,094	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	2,938,339,830
Debt Affiliate	$	-	$	103,509,239	$	329,334,714	$	334,256,777	$	142,239,099	$	-	$	-	$	-	$	-	$	-	$	-	$	3,711,797,251
Accounts payable	$	-	$	-	$	-	$	28,857,169	$	1,240,800	$	-	$	-	$	41,268	$	62,647	$	-	$	-	$	81,034,561
Other	$	-	$	-	$	-	$	96,302,333	$	40,516,097	$	-	$	-	$	435,014	$	72,824	$	(1)	$	-	$	614,150,912
Total Liabilities	$	651,319,345	$	103,844,523	$	350,874,675	$	814,785,447	$	241,400,927	$	(1)	$	16,001	$	(346,600)	$	81,977,425	$	128,109	$	-	$	8,143,143,818
Shareholder Equity net	$	168,823,854	$	2,732,866,246	$	1,290,861,913	$	1,619,821,099	$	(225,856,794)	$	79,853,516	$	7,807,242	$	489,668,854	$	(76,841,193)	$	693,711	$	-	$	13,175,485,957
Total Liabilities and Shareholders' Equity	$	820,143,199	$	2,836,710,769	$	1,641,736,588	$	2,434,606,546	$	15,544,133	$	79,853,515	$	7,823,243	$	489,322,254	$	5,136,232	$	821,820	$	-	$	21,318,629,775

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
	Case No. 09-11296
Debtor:

MOR-7

Debtor Consolidating Statement of Operations

For the Period August 1, 2009 to August 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	-	-	-	111,283,571	(4,519)	(4,480)	31,768	-	-	-
Cost of Sales	-	-	-	112,161,361	(4,480)	1,522,511	1,937,295	-	-	-
Gross Profit (Loss)	-	-	-	(877,790)	(39)	(1,526,991)	(1,905,527)	-	-	-
Operating Expenses
Selling, General and Administrative	(169,730)	-	-	(102,553)	-	-	-	-	-	-
Research and Development	-	-	-	-	-	-	-	-	-	-
Restructuring and Other Costs	-	-	-	3,625,906	-	32,105	-	-	-	-
Total Operating Expenses	(169,730)	-	-	3,523,353	-	32,105	-	-	-	-
Operating Income (Loss)	169,730	-	-	(4,401,143)	(39)	(1,559,096)	(1,905,527)	-	-	-
Interest Income (Expense)	(9,743,053)	(7,919,501)	-	1,379,885	(1,344,329)	373	(5,203)	-	-	(51,756)
Other Income (Expense) Net	164,991	-	-	(863,197)	5,223	-	-	-	-	(900)
Equity in Earnings of Subs	-	-	-	-	-	-	-	-	-	-
Income Before Taxes	(9,408,332)	(7,919,501)	-	(3,884,455)	(1,339,145)	(1,558,723)	(1,910,730)	-	-	(52,656)
Income Tax Expense	-	-	-	-	-	-	-	-	-	-
Net Income before Discontinued Operations	(9,408,332)	(7,919,501)	-	(3,884,455)	(1,339,145)	(1,558,723)	(1,910,730)	-	-	(52,656)
Discontinued Operations	-	-	-	-	-	-	-	-	-	-
Net Income (Loss)	(9,408,332)	(7,919,501)	-	(3,884,455)	(1,339,145)	(1,558,723)	(1,910,730)	-	-	(52,656)

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
	Case No. 09-11296
Debtor:

MOR-7 (continued)

Debtor Consolidating Statement of Operations

For the Period August 1, 2009 to August 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	-	5,969,176	-	19,779,663	-	66,776,779	-	-	-	74,547,786	-
Cost of Sales	-	8,908,342	-	24,053,563	(2,547)	36,172,481	-	-	-	74,125,173	-
Gross Profit (Loss)	-	(2,939,166)	-	(4,273,900)	2,547	30,604,298	-	-	-	422,613	-
Operating Expenses
Selling, General and Administrative	-	(52,725)	-	127,925	-	5,305,826	-	-	-	399	-
Research and Development	-	-	-	-	-	-	-	-	-	-	-
Restructuring and Other Costs	-	-	-	(26,000)	-	4,656,351	-	-	-	-	-
Total Operating Expenses	-	(52,725)	-	101,925	-	9,962,177	-	-	-	399	-
Operating Income (Loss)	-	(2,886,441)	-	(4,375,825)	2,547	20,642,121	-	-	-	422,214	-
Interest Income (Expense)	-	(110)	-	(218)	-	1,874,745	-	-	-	(65)	-
Other Income (Expense) Net	-	1,369	-	13,708	-	1,994,837	-	-	-	(32,376)	38,339
Equity in Earnings of Subs	-	-	-	-	-	-	-	-	-	-	(619,200)
Income Before Taxes	-	(2,885,182)	-	(4,362,335)	2,547	24,511,703	-	-	-	389,773	(580,861)
Income Tax Expense	-	-	-	-	-	-	-	-	-	31,667	-
Net Income before Discontinued Operations	-	(2,885,182)	-	(4,362,335)	2,547	24,511,703	-	-	-	421,440	(580,861)
Discontinued Operations	-	-	-	-	-	-	-	-	-	-	-
Net Income (Loss)	-	(2,885,182)	-	(4,362,335)	2,547	24,511,703	-	-	-	421,440	(580,861)

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
	Case No. 09-11296
Debtor:

MOR-7 (continued)

Debtor Consolidating Statement of Operations

For the Period August 1, 2009 to August 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	-	-	-	39,691,947	10,533	-	-	-	49,703	-	-	318,131,927
Cost of Sales	-	-	-	45,696,355	184,875	-	-	20,950	200,276	-	-	304,976,155
Gross Profit (Loss)	-	-	-	(6,004,408)	(174,342)	-	-	(20,950)	(150,573)	-	-	13,155,772
Operating Expenses
Selling, General and Administrative	-	-	-	933,656	-	-	-	-	-	-	-	6,042,798
Research and Development	-	-	-	-	-	-	-	-	-	-	-	-
Restructuring and Other Costs	-	-	-	3,455,391	8,922	-	-	-	-	-	-	11,752,675
Total Operating Expenses	-	-	-	4,389,047	8,922	-	-	-	-	-	-	17,795,473
Operating Income (Loss)	-	-	-	(10,393,455)	(183,264)	-	-	(20,950)	(150,573)		-	(4,639,701)
Interest Income (Expense)	(3,997,173)	(552,362)	(32)	(2,668,220)	(396,306)	(441)	(5)	170,883	-	(32)	-	(23,252,920)
Other Income (Expense) Net	963,330	145,909	323,152	3,313,164	3,992,238	-	-	116	845	-	-	10,060,748
Equity in Earnings of Subs	-	-	-	53,565	-	-	-	-	-	-	-	(565,635)
Income Before Taxes	(3,033,843)	(406,453)	323,120	(9,694,946)	3,412,668	(441)	(5)	150,049	(149,728)	(32)	-	(18,397,508)
Income Tax Expense	-	-	-	-	-	-	-	-	-	-	-	31,667
Net Income before Discontinued Operations	(3,033,843)	(406,453)	323,120	(9,694,946)	3,412,668	(441)	(5)	150,049	(149,728)	(32)	-	(18,365,841)
Discontinued Operations	-	-	-	-	-	-	-	-	-	-	-	-
Net Income (Loss)	(3,033,843)	(406,453)	323,120	(9,694,946)	3,412,668	(441)	(5)	150,049	(149,728)	(32)	-	(18,365,841)

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
	Case No. 09-11296
Debtor:

MOR-8

Declaration Regarding the Status of Post-Petition Taxes of the Debtors

As of August 31, 2009

Joel P. Ihrig hereby declares under penalty of perjury:  

1.	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.
2.	I am authorized to submit this Declaration of behalf of the Debtors.
3.	To the best of my knowledge, I certify that the Debtor and all affiliated Debtors have paid all taxes from August 1st, 2009, through August 31st, 2009, the end of this reporting period.

Dated:  September 30, 2009                Respectfully submitted,  

                                                               /s/ Joel P. Ihrig                                                     

                                                               By:  Joel P. Ihrig

                                                               Title:  Vice President Taxation

In re: Abitibibowater Inc., et al.,	Chapter 11
	Case No. 09-11296
Debtor:

MOR-9

Combined Listing of Post-Petition Aged Accounts Payable

As of August 31, 2009

(Dollars in Thousands)

		Number of Days Outstanding
	Notes		10-30		31-60		61-90		Over 90		Totals
Accounts Payable	(1)	$	52,015	$	11,406	$	1,119	$	2,028	$	66,569
											0
											0
Total Post-Petition payables		$	52,015	$	11,406	$	1,119	$	2,028	$	66,569
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
	Case No. 09-11296
Debtor:

MOR-10

Combined Listing of Aged Accounts Receivable

As of August 31, 2009

(Dollars in Thousands)

Number of Days Outstanding

	Notes		Current		0-30		31-60		61-90		Over 90		Totals
Accounts Receivable	(1)	$	177,671	$	25,482	$	7,013	$	935	$	22,676	$	233,778
Other Receivables	(2)		55,145		0		0		0		25,252		80,398
Totals	(3)	$	232,817	$	25,482	$	7,013	$	935	$	47,929	$	314,176
			74.1%		8.1%		2.2%		0.3%		15.3%		100.0%

Notes:

(1)  All amounts have been converted to U.S. Dollars.

(2)  Other receivables primarily include:

          - A/R Excise/Commodity Taxes $11.7 million

          - A/R Black Liquid Fuel Credit Program $14.1 million

          - A/R Roads/Land Refurb Credit $25.3 million

          - Other A/R miscellaneous items $29.3 million

(3)  The accounts receivable stated above does not include any provisions for bad debt. The allowance for bad debt is

approximately $11.3 million.

In re: Abitibibowater Inc., et al.,	Chapter 11
	Case No. 09-11296
Debtor:

MOR-11

Summary of Debtors Post-Petition Intercompany Receivables and Payables

 

		July 31, 2009						August 31, 2009						Change
Case #	Debtor Entity	Inter company Balances		Inter company Notes		Total		Inter company Balances		Inter company Notes		Total		Inter company Balances		Inter company Notes		Total
09-11296	AbitibiBowater Incorporated	$	(73,629,075)	$	(350,929,765)	$	(424,558,840)	$	(72,350,183)	$	(360,672,818)	$	(433,023,001)	$	1,278,892	$	(9,743,053)	$	(8,464,161)
09-11297	AbitibiBowater US Holding LLC	$	0	$	(816,110,220)	$	(816,110,220)	$	0	$	(824,029,721)	$	(824,029,721)	$	0	$	(7,919,501)	$	(7,919,501)
09-11298	Donohue Corp.	$	(35,671,017)	$	529,710,862	$	494,039,845	$	(35,676,309)	$	531,300,071	$	495,623,762	$	(5,292)	$	1,589,209	$	1,583,917
09-11299	Abitibi Consolidated Sales Corporation	$	(22,550,845)	$	(186,680,435)	$	(209,231,280)	$	(23,887,654)	$	(185,336,106)	$	(209,223,760)	$	(1,336,809)	$	1,344,329	$	7,520
09-11300	Abitibi-Consolidated Alabama Corporation	$	11,334,844	$	(255,872,310)	$	(244,537,466)	$	11,730,134	$	(257,216,639)	$	(245,486,505)	$	395,290	$	(1,344,329)	$	(949,039)
09-11301	Alabama River Newsprint Company	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
09-11302	Abitibi-Consolidated Corporation	$	(276,750,538)	$	52,000,000	$	(224,750,538)	$	(279,816,443)	$	52,000,000	$	(227,816,443)	$	(3,065,905)	$	0	$	(3,065,905)
09-11303	Augusta Woodlands, LLC	$	4,371,680	$	40,000,000	$	44,371,680	$	4,371,680	$	40,000,000	$	44,371,680	$	0	$	0	$	0
09-11304	Tenex Data Inc.	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
09-11305	Abitibi-Consolidated Finance LP	$	14,169,284	$	36,642,749	$	50,812,033	$	14,168,882	$	36,102,484	$	50,271,366	$	(402)	$	(540,265)	$	(540,667)
09-11306	Bowater Newsprint South LLC	$	(21,600,000)	$	0	$	(21,600,000)	$	(21,600,000)	$	0	$	(21,600,000)	$	0	$	0	$	0
09-11307	Bowater Newsprint South Operations LLC	$	(21,732,539)	$	0	$	(21,732,539)	$	(25,046,141)	$	0	$	(25,046,141)	$	(3,313,602)	$	0	$	(3,313,602)
09-11308	Bowater Finance II LLC	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
09-11309	Bowater Alabama LLC	$	139,047,680	$	0	$	139,047,680	$	141,424,069	$	0	$	141,424,069	$	2,376,389	$	0	$	2,376,389
09-11310	Coosa Pines Golf Club LLC	$	243,094	$	0	$	243,094	$	247,694	$	0	$	247,694	$	4,600	$	0	$	4,600
09-11311	Bowater Incorporated	$	499,623,633	$	714,686,148	$	1,214,309,781	$	710,720,337	$	540,933,900	$	1,251,654,237	$	211,096,704	$	(173,752,248)	$	37,344,456
09-11312	Catawba Property Holdings LLC	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
09-11314	Bowater Finance Company Inc.	$	11,188	$	30,060,355	$	30,071,543	$	11,188	$	30,060,355	$	30,071,543	$	0	$	0	$	0
09-11315	Bowater South American Holdings Inc.	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
09-11316	Bowater America Inc.	$	(685,007,215)	$	0	$	(685,007,215)	$	(683,106,550)	$	0	$	(683,106,550)	$	1,900,665	$	0	$	1,900,665
09-11317	Lake Superior Forest Products Inc.	$	(77,452,521)	$	0	$	(77,452,521)	$	(77,369,458)	$	0	$	(77,369,458)	$	83,063	$	0	$	83,063
09-11319	Bowater Canada Finance Corporation	$	(463,631)	$	0	$	(463,631)	$	(456,797)	$	0	$	(456,797)	$	6,834	$	0	$	6,834
09-11320	Bowater Canadian Holdings Incorporated	$	(907,057)	$	(53,334,383)	$	(54,241,440)	$	(688,621)	$	(53,813,479)	$	(54,502,100)	$	218,436	$	(479,096)	$	(260,660)
09-11321	AbitibiBowater Canada Inc.	$	(5,746,554)	$	(329,334,714)	$	(335,081,268)	$	(5,663,041)	$	(329,334,714)	$	(334,997,755)	$	83,513	$	0	$	83,513
09-11322	Bowater Canadian Forest Products Inc.	$	363,974,676	$	(50,020,499)	$	313,954,177	$	167,429,836	$	135,172,320	$	302,602,156	$	(196,544,840)	$	185,192,819	$	(11,352,021)
09-11324	Bowater Maritimes Inc.	$	(51,195,738)	$	(143,920,862)	$	(195,116,600)	$	(51,400,996)	$	(142,239,099)	$	(193,640,095)	$	(205,258)	$	1,681,763	$	1,476,505
09-11325	Bowater LaHave Corporation	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
09-11326	Bowater Canadian Limited	$	(13,919)	$	0	$	(13,919)	$	(13,712)	$	0	$	(13,712)	$	207	$	0	$	207
09-11328	Bowater Nuway Inc.	$	2,642,759	$	483,850,985	$	486,493,744	$	2,611,876	$	484,021,868	$	486,633,744	$	(30,883)	$	170,883	$	140,000
09-11329	Bowater Nuway Mid-states Inc.	$	(73,129,523)	$	0	$	(73,129,523)	$	(73,134,309)	$	0	$	(73,134,309)	$	(4,786)	$	0	$	(4,786)
09-11330	Bowater Ventures Inc.	$	(128,110)	$	0	$	(128,110)	$	(128,110)	$	0	$	(128,110)	$	0	$	0	$	0
09-11331	AbitibiBowater US Holding 1 Corp.	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0
	Canadian Debtors	$	353,215,776	$	371,862,507	$	725,078,283	$	352,400,165	$	375,647,042	$	728,047,207	$	(815,611)	$	3,784,535	$	2,968,924
			-						0
	Non-Filing Companies	$	(42,656,332)	$	(72,610,418)	$	(115,266,750)	$	(54,777,537)	$	(72,595,464)	$	(127,373,001)	$	(12,121,205)	$	14,954	$	(12,106,251)
	Total	$	0	$	-	$	0	$	0	$	-	$	0	$	-	$	-	$	-

In re: Abitibibowater Inc., et al.,	Chapter 11
	Case No. 09-11296
Debtor:

MOR-12

Debtors' Questionnaire

For the Period August 1, 2009 to August 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.

In re: Abitibibowater Inc., et al.,	Chapter 11
	Case No. 09-11296
Debtor:

MOR-12a

Supplement to Debtors' Questionnaire

For Period August 1, 2009 to August 30, 2009

Listing of bank accounts opened during the reporting period.

Debtor	Bank Name	Date Opened
(none)

EX-99

Exhibit 99.2

CANADA	SUPERIOR COURT
PROVINCE OF QUÉBEC DISTRICT OF MONTRÉAL No.: 500-11-036133-094	Commercial Division Sitting as a court designated pursuant to the Companies' Creditors Arrangement Act, R.S.C., c. C-36, as amended
	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

SEVENTEENTH REPORT OF THE MONITOR

OCTOBER 5, 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") and subsequently extended to December 15, 2009 (the "Second 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").

4.              The Petitioners are all subsidiaries of ABH (ABH, collectively with its subsidiaries, are referred to as 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.

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 (the "Partnerships") listed in Appendix "D" hereto.

BACKGROUND

8.              ABH is one of the world's largest publicly traded pulp and paper manufacturers.  It produces a wide range of newsprint and commercial printing papers, market pulp and wood products . The ABH Group owns interests in or operates 23 pulp and paper facilities, 29 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").

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.

-3-

11.            ACCC, a wholly-owned subsidiary of ACI, and BCFPI hold the majority of ABH's Canadian assets and operations.

PURPOSE

12.             This is the seventeenth report of the Monitor (the "Seventeenth Report") in these CCAA Proceedings, the purpose of which is to report to this Honourable Court with respect to the following:

(i)               the Petitioners' four-week cash flow results for the period from August 24, 2009 to September 20, 2009 (the "Reporting Period"), in accordance with the First Stay Extension Order, and to provide details with respect to the following:

(a)               an update regarding the overview of the current market conditions in the forest products industry provided in the fifteenth report of the Monitor dated September 2, 2009 (the "Fifteenth Report");

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

(c)                the current liquidity and revised cash flow forecasts of the ACI Group and BCFPI for the 13-week period ending December 20, 2009;

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

(ii)            the sale of certain de minimis assets formerly owned by BCFPI; and

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

-4-

TERMS OF REFERENCE

13.            In preparing this Seventeenth 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 Seventeenth Report.  Some of the information referred to in this Seventeenth 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 Seventeenth 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 Seventeenth 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 Seventeenth 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.

-5-

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

CURRENT MARKET CONDITIONS IN THE FOREST PRODUCTS INDUSTRY

17.            Pursuant to the First Stay Extension Order, the Monitor has provided 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.  These regular reports have included details with respect to the market conditions in the forest products industry.

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

19.            As reported to this Honourable Court in the Fifteenth Report, BCFPI announced the continued idling of two newsprint machines at its Thunder Bay facility.  On September 17, 2009, in response to the continued weakness in market demand, and in attempt to reduce unnecessary high cost production capacity, the Petitioners announced that they will be curtailing production or indefinitely idling certain additional facilities, including one newsprint machine at ACCC's Clermont facility, a specialty paper machine at ACCC's Fort Frances facility and the indefinite idling ACCC's Beaupre facility.

20.            In addition, ABH also announced production curtailments for certain of BI's mills, including:

(i)             Bowater Mersey Paper Company Ltd. ("Mersey") (halving production at a BI joint venture); and

(ii)             Coosa Pines (one newsprint machine will be idled).

-6-

21.            Since the commencement of these CCAA proceedings, ABH has announced production curtailments or mill idlings representing annual capacity reductions of approximately 1.3 million tonnes (which includes the idling of BCFPI's Dolbeau facility).

22.            The Petitioners believe that this significant reduction in capacity is necessary to eliminate unnecessary high cost production capacity and to operate their remaining mills on a more cost efficient basis.

23.            ABH's competitors have also announced reduced production as reported in previous Reports of the Monitor.  Further reductions have been announced recently, including by Kruger Inc., which announced that it will be taking additional downtime at a newsprint mill in Brompton, QC,  An additional two weeks was added to pre-existing market related downtime.  Kruger Inc. will also be temporarily idling its newsprint mill in Cornerbrook, Newfoundland, for two weeks beginning October 12, 2009 as well.

24.            The Fifteenth Report noted that the Petitioners had recently announced price increases of $35 per tonne for North American customers for each of September and October of 2009.  According to a September 4, 2009 release on RISI.com, all major newsprint producers in North America have announced similar price increases.  Producers announcing price increases represent over 95% of the total North American newsprint market.

RECEIPTS AND DISBURSEMENTS FROM AUGUST 24, 2009 TO SEPTEMBER 30, 2009 FOR THE ACI GROUP AND BCFPI

The ACI Group

25.            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 Seventeenth Report, with a comparison to the ACI Forecast amounts provided in the Fifteenth Report.

-7-

			US$000
			Actual		Forecast		Variance
Opening Cash		$	36,407	$	36,407	$	-
Receipts			207,103		229,841		(22,738)
Disbursements
	Net Trade Disbursements		(107,129)		(107,700)		571
	Intercompany		(8,432)		-		(8,432)
	Other		(67,799)		(65,342)		(2,457)
			(183,360)		(173,042)		(10,318)
Financing
	Securitization Inflows / (Outflows)		6,201		(11,249)		17,450
	Asset Sales		47,700		47,700		-
	Adequate Protection by DCorp to ACCC Term Lenders		(3,498)		(3,537)		39
	DIP Drawings / (Repayments)		10,000		10,000		-
	DIP Interest & Fees		(204)		(213)		9
	Restructuring & Other Items		(4,109)		(4,000)		(109)
	Foreign Exchange Translation		(643)		-		(643)
			55,447		38,701		16,746
Net Cash Flow			79,190		95,500		(16,310)
Ending Cash		$	115,597	$	131,907	$	(16,310)
DIP Availability (net of minimum undrawn balance)			32,700		32,700		-
Available Liquidity		$	148,297	$	164,607	$	(16,310)

26.            As shown in the table above, the ACI Group's total receipts for the Reporting Period, net of joint venture remittances, were approximately $22.7 million lower than projected in the ACI Forecast. Disbursements were $10.3 million higher than projected in the ACI Forecast and Financing cash flow was $16.7 million greater than projected in the ACI Forecast.  Overall, the ending cash balance and available liquidity were each approximately $16.3 million lower than the ACI Forecast.

Receipts

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

-8-

			US$000
Receipts	Para.		Actual		Forecast		Variance	Variance %
A/R Collections	28(i)	$	154761	$	166,420	$	(11,659)	(7%)
Intercompany A/R Settlement	28(i)		28,962		-		28,962	N/A
Joint Venture Remittances, Net	28(i)		(16,615)		(13,015)		(3,600)	(28%)
Collections on Behalf of Joint Ventures	28(ii)		2,235		14,738		(12,503)	(85%)
Net A/R Collections			169,343		168,143		1,200	1%
Other Inflows	28(iii)		37,760		61,698		(23,938)	(39%)
Total Receipts		$	207,103	$	229,841	$	(22,738)	(10%)

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

(i)             A/R Collections , inclusive of receipts related to Intercompany A/R Settlements, net Joint Venture Remittances, and Collections on Behalf of Joint Ventures, were approximately $169.3 million during the Reporting Period compared to a forecast amount of $168.1 million resulting in a positive variance of approximately 1%.

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

(ii)             Collections on Behalf of Joint Ventures totalled approximately $2.2 million during the Reporting Period.  This amount represents amounts collected by the ACI Group for accounts receivable that belong to a joint venture partner .  Such amounts will be paid to the joint venture partner on a monthly basis or in accordance with the joint venture agreement.  The amount of $2.2 million is compared to a forecast amount of $14.7 million and results in a negative variance of approximately $12.5 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".

-9-

During the Reporting Period, net Joint Venture Remittances totalled approximately $16.6 million resulting in a negative variance of $3.6 million primarily due to greater than forecast production of the ACI Group's Augusta joint venture, resulting in greater collection of accounts receivable by ACI on behalf of the joint venture.

(iii)             Other Inflows , which includes tax refunds and other miscellaneous receipts, totalled $37.8 million during the Reporting Period.  The ACI Forecast included projected receipts of $61.7 million.  The difference is primarily due to the timing of receipt of funds from the government of Quebec (approximately $36.0 million) for the reimbursement of costs in respect of roads built by the ACI Group in the province.  The collection of this amount has been included in the cash flow forecast for the week ended October 11, 2009 in the updated cash flow forecast in Appendix "G".

Disbursements

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

			US$000
	Para.		Actual		Forecast		Variance	Variance %
Trade Payables	30(i)	$	(132,603)	$	(101,573)	$	(31,030)	(31%)
Intercompany A/P Settlement	30(i)(c)		25,474		-		25,474	N/A
Capital Expenditures	30(ii)		-		(6,127)		6,127	100%
Net Trade Disbursements		$	(107,129)	$	(107,700)	$	571	1%

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

(i)             Disbursements related to Trade Payables were approximately $132.6 million during the Reporting Period, which was $31.0 million greater than the ACI Forecast.  Management has advised that the variance is primarily due to the following:

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

(b)            the ACI Group regularly disburses amounts on behalf of other affiliated entities which are included in Trade Payables (as noted above, the ACI Group was reimbursed by affiliates for approximately $25.5 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; and

(c)            Receipts related to Intercompany A/P Settlements totalled approximately $25.5 million during the Reporting Period.  Such receipts represent other ABH Group entities reimbursing the ACI Group for payments made on their behalf in the normal course pursuant to the operation 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 on a regular basis.  Such amounts would have originally been included as a disbursement in the Trade Payables line.

(ii)            As noted above, Capital Expenditures are not tracked on a weekly basis.  The disbursements related to capital disbursements have been included in the Trade Payables disbursement line.  Management has advised the Monitor that capital expenditures for the month of August, 2009 totalled approximately $3.8 million.

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

			US$000
	Para.		Actual		Forecast		Variance	Variance %
A/R Collections - Affiliates	31(i)	$	14,193	$	-	$	14,193	N/A
Intercompany A/R Settlements	31(ii)		(22,625)		-		(22,625)	N/A
		$	(8,432)	$	-	$	(8,432)	N/A

(i)             A/R Collections – Affiliates totalled approximately $14.2 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 are not forecast by the Petitioners.  The funds are paid on a regular basis by the ACI Group to the appropriate ABH Group entity, which payments are reflected in the Intercompany A/R Settlements line of the "Intercompany" section of the cash flow statement.  As discussed in the next section, an amount of approximately $22.6 million was paid out to affiliates during the Reporting Period by the ACI Group to reimburse affiliates for collections made on their behalf by the ACI Group.

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

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

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			US$000
	Para.		Actual		Forecast		Variance	Variance %
Marine Freight Payments	32(i)	$	(6,800)	$	(4,200)	$	(2,600)	(62%)
Utility Payments	32(ii)		(20,462)		(24,051)		3,589	15%
Payroll & Benefits	32(iii)		(40,537)		(37,091)		(3,446)	(9%)
Net Other Disbursements		$	(67,799)	$	(65,342)	$	(2,457)	(4%)

(i)             Marine Freight Payments totalled $6.8 million during the Reporting Period.  This compares to an amount of $4.2 million in the ACI Forecast.  This negative variance is due to a higher than forecast sales to international customers who require the use of marine freight.

(ii)             Utility Payments were approximately $3.6 million less than forecast.  Under the agreement the ACI Group has with its various power suppliers, it is required to pay a certain fixed amount on a weekly basis.  Negotiations are ongoing to adjust the payment amount to a level that reflects current power usage.

(iii)             Total payments for Payroll & Benefits were $40.5 million during the Reporting Period compared to an amount of approximately $37.1 million in the ACI Forecast.  This difference is primarily due to higher than forecast pension payments than contained in the ACI Forecast due to higher pensionable earnings being incurred.

Financing

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

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			US$000
Financing	Para.		Actual		Forecast		Variance	Variance %
Securitization Inflows / (Outflows)	34(i)	$	6,201	$	(11,249)	$	17,450	155%
Asset Sales	34(ii)		47,700		47,700		-	-
Adequate Protection by DCorp to ACCC Term Lenders			(3,498)		(3,537)		39	1%
DIP Drawings / (Repayments)	34(iii)		10,000		10,000		-	-
DIP Interest & Fees			(204)		(213)		9	4%
Restructuring & Other Items			(4,109)		(4,000)		(109)	(3%)
Foreign Exchange Translation	34(iv)		(643)		-		(643)	N/A
		$	55,447	$	38,701	$	16,746	43%

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 $6.2 million compared to a projected outflow of approximately $11.2 million during the Reporting Period.  The reason for this variance is due to better than forecast availability due to lower ineligible receivables and a higher than forecast accounts receivable balance.

(ii)             Asset Sales represents proceeds from the sale of the Quebec Timberlands (as discussed in the Twelfth report of the Monitor dated July 31, 2009) and were received on September 2, 2009.

(iii)            The ACI Forecast included a projected draw on the ACI DIP Facility during the week ended September 6, 2009.  This amount was drawn in accordance with the ACI Forecast.

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

-14-

BCFPI

35.           The following table summarizes the receipts and disbursements of BCFPI from August 24, 2009 to September 20, 2009, which is detailed in Appendix "F" of this Seventeenth Report:

			US$000
			Actual		Forecast		Variance
Receipts		$	81,289	$	91,818	$	(10,529)
Disbursements
	Net Trade Disbursements		(51,206)		(32,029)		(19,177)
	Intercompany		(1,917)		-		(1,917)
	Other		(15,646)		(14,443)		(1,203)
			(68,768)		(46,472)		(22,296)
Financing
	Interest		(748)		(798)		50
	Restructuring Costs		(1,146)		(1,172)		26
	Foreign Exchange Translation		(1,344)		-		(1,344)
			(3,238)		(1,970)		(1,268)
Net Cash Flows			9,283		43,376		(34,093)
Opening Cash			(813)		(813)		-
Ending Cash		$	8,470	$	42,563	$	(34,093)

36.           As detailed in the table above, BCFPI's total receipts for the Reporting Period were approximately $10.5 million lower than the BCFPI Forecast.  Disbursements were $22.3 million higher than the BCFPI Forecast and Financing disbursements were $1.3 million greater than forecast.  BCFPI had cash on hand of $8.5 million at September 20, 2009.  Overall, the ending cash balance was $34.1 million lower than the BCFPI Forecast.

Receipts

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

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			US$000
Receipts	Para.		Actual		Forecast		Variance	Variance %
A/R Collections		$	8,472	$	49,118	$	(40,646)	(83%)
Intercompany A/R Settlements			64,895		31,000		33,895	109%
Total A/R Collections	38(i)		73,367		80,118		(6,751)	(8%)
Other Inflows	38(ii)		7,922		11,700		(3,778)	(32%)
Total Receipts		$	81,289	$	91,818	$	(10,529)	(11%)

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 $73.4 million resulting in a negative variance of approximately $6.8 million.  This variance is primarily due to lower than forecast sales and the related collections due to the continued idling of BCFPI's Dolbeau mill.  The BCFPI Forecast had contemplated that Dolbeau would be operational for a portion of the Reporting Period.

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

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

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(ii)             Amounts received related to Other Inflows were approximately $7.9 million during the Reporting Period.  Such receipts primarily represent various tax refunds, deposits made at the mill level and proceeds from the sale of non-core assets.  BCFPI does not typically forecast such amounts.  The BCFPI Forecast had projected an amount of $11.7 million to be received in respect of tax credits for roads built in the province of Quebec. This amount was not received during the Reporting Period and has been included in the updated cash flow forecast contained in Appendix "H" in the week ended October 11, 2009.

Disbursements

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

			US$000
Disbursements	Para.		Actual		Forecast		Variance	Variance %
Trade Payables	40(i)	$	(37,851)	$	(30,178)	$	(7,672)	(25%)
Intercompany A/P Settlements - Receipts	40(i)(a)		1,765		-		1,765	N/A
Intercompany A/P Settlements - Disbursements	40(ii)		(6,587)		-		(6,587)	N/A
Capital Expenditures	40(iii)		-		(1,851)		1,851	100%
Payments on Behalf of Affiliates	40(iv)		(8,534)		-		(8,534)	N/A
Net Trade Disbursements		$	(51,206)	$	(32,029)	$	(19,177)	(60%)

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 provided for these variances:

(i)             Disbursements related to Trade Payables were approximately $7.7 million greater than projected during the Reporting Period.  The reason for this variance is due to the following:

(a)            Intercompany A/P Settlements were delayed in weeks prior to August 24, 2009, resulting in higher disbursements during the Reporting Period to settle the outstanding intercompany balances;

(b)            higher than forecast woodlands operations;

(c)            usage of electricity was higher than forecast; and

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(d)            a timing difference with respect to maintenance disbursements at BCFPI's Thunder Bay facility.

Receipts related to Intercompany A/P Settlements - Receipts were approximately $1.8 million compared to an amount of $nil in the BCFPI Forecast.  BCFPI does not typically forecast this line item and such amounts represent reimbursement for amounts disbursed on behalf of Mersey, which is a joint venture partially owned by BI.

(ii)            Intercompany A/P Settlements - Disbursements represent BCFPI reimbursing related entities for payments made on its behalf.  During the Reporting Period, such payments totalled approximately $6.6 million and are primarily reimbursements to the ACI Group for freight costs.

(iii)           Capital Expenditures are not tracked on a weekly basis.  As such, disbursements for this line item have been included in Trade Payables.    The Monitor has been advised that capital expenditures for August, 2009 were $1.2 million.

(iv)          Payments on Behalf of Affiliates were $8.5 million during the Reporting Period.  These payments primarily represent disbursements made by BCFPI on behalf of Mersey.  Due to the integrated nature of the operations of the Petitioners and the Cash Management System, such payments occur on a regular basis.  BCFPI does not forecast such payments, nor does it forecast the repayment of these items.

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

			US$000
	Para.		Actual		Forecast		Variance	Variance %
A/R Collections - Affiliates	41(i)	$	3,616	$	-	$	3,616	N/A
Intercompany A/R Settlements	41(ii)		(5,533)		-		(5,533)	N/A
		$	(1,917)	$	-	$	(1,917)	N/A

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(i)                Receipts related to A/R Collections – Affiliates totalled approximately $3.6 million during the Reporting Period.  Such amounts are regularly collected by BCFPI as part of the operation of the Cash Management System.

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

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

			US$000
	Para.		Actual		Forecast		Variance	Variance %
Freight	42(i)	$	(3,223)	$	(2,801)	$	(422)	(15%)
Payroll and Benefits	42(ii)		(12,423)		(11,642)		(781)	(7%)
		$	(15,646)	$	(14,443)	$	(1,203)	(8%)

(i)             Disbursements for Freight totalled $3.2 million during the Reporting Period.  This compares to an amount of approximately $2.8 million in the BCFPI Forecast.

(ii)            During the Reporting Period, payments in respect of Payroll and Benefits totalled $12.4 million.  The BCFPI Forecast projected disbursements in the amount of $11.6 million.  This variance is primarily due to the quantum of pension payments paid by BCFPI.  Such payments were higher than forecast due to higher than forecast pensionable earnings.

Financing

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

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			US$000
Financing	Para.		Actual		Forecast		Variance	Variance %
Interest		$	(748)	$	(798)	$	50	6%
Restructuring Costs			(1,146)		(1,172)		26	2%
Foreign Exchange Translation	44		(1,344)		-		(1,344)	N/A
Cash Flow from Financing/Restructuring		$	(3,238)	$	(1,970)	$	(1,268)	(64%)

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

CURRENT LIQUIDITY POSITION AND THE 13-WEEK CASH FLOW FORECASTS

45.            Attached as Appendices "G" and "H", respectively, are the updated 13-week cash flow forecasts of the ACI Group (including DCorp) and BCFPI through December 20, 2009.

46.            As at September 20, 2009, the ACI Group had cash on hand of $115.6 million.  In addition to this amount, the undrawn portion of the ACI DIP Facility was $45.2 million.  However, pursuant to the ACI DIP Facility, $12.5 million of this amount must remain undrawn, thereby resulting in net available liquidity under the ACI DIP Facility of $32.7 million.  Accordingly, the total liquidity of the ACI Group was $148.3 million ($115.6 million cash plus $32.7 million of the ACI DIP Facility) as at September 20, 2009.

47.            The ACI Group's actual liquidity to September 20, 2009 and forecast liquidity for the 13 weeks ending December 20, 2009 is set forth in Appendix "G" and is summarized in the graph below:

-20-

The graph above includes the forecast receipt of an annual refund for the construction of roads in the province of Quebec in the amount of $36.0 million in the week ended October 11, 2009.  Excluding this item, the ACI Group's projected negative cash flow for the 13 weeks ended December 20, 2009 would be approximately $72.6 million.  Of this amount, approximately $23.4 million represents non-operating items such as professional fees and Adequate Protection Payments to the ACCC Term Lenders.

48.            The ACI Group's liquidity at December 20, 2009 is projected to be $111.6 million.  This is compared to a projected amount of approximately $101.1 million at the end of 17 weeks ended December 20, 2009 as detailed in the Fifteenth Report.

49.            The ACI Group cash flow forecast included in Appendix "G" does not reflect the repayment of the ACI DIP Facility on November 1, 2009, which is the date by which the ACI DIP Facility must be repaid.  The ACI Group has indicated that it anticipates that amounts outstanding under the ACI DIP Facility will be repaid with proceeds of the sale of the ACI Group's 60% interest in the Manicouagan Power Company ("MPCo").  The cash flow projections contained Appendix "G" do not reflect this anticipated transaction, nor does it reflect the repayment of the ACI DIP Facility from the proceeds from the sale of ACCC's interest in MPCo.

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50.            Actual results since the date of the issuance of the Initial Order and BCFPI's forecast liquidity for the 13 weeks ended December 20, 2009, which includes projected intercompany funding from BI in the amount of $16.0 million, is set forth in Appendix "H" and is summarized in the graph below.  The estimate of liquidity in the following graph assumes that a minimum cash balance of $10.0 million will be maintained and funds are transferred from BI, as necessary, on that basis.

51.            On August 26, 2009 and September 1, 2009, this Honourable Court and the U.S. Bankruptcy Court, respectively, approved certain agreements between the ACI Group, BCFPI and Smurfit-Stone Container Canada Inc. ("Smurfit") relating to the sale of certain timberlands by Smurfit, which will result in BCFPI receiving net proceeds in the amount of approximately $25.6 million (the "Smurfit Timberland Proceeds").  Once received by BCFPI, the Smurfit Timberland Proceeds are to be held in trust by the Monitor pending further order of this Honourable Court.  For purposes of the forecast, the proceeds are reflected as being held in trust by the Monitor and are not used for operating purposes due to the uncertainty regarding the timing of the release of these funds.  As of the date of this Seventeenth Report, the Smurfit Timberland Proceeds are still in escrow and have not yet been received by BCFPI and transferred to the Monitor's trust account.

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52.           BCFPI's liquidity as at December 20, 2009 is projected to be approximately $9.9 million, not including the Smurfit Timberland Proceeds.

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

54.           As noted earlier in this Seventeenth Report, the Petitioners recently announced that production will be curtailed and that certain facilities will be indefinitely idled.  The forecasts in Appendices "G" and "H" do not yet reflect the cash flow impact related to these announcements, as the Petitioners are in the process of updating their cash flow projections with respect to such changes.  The impact of these changes, which will likely be material, will be reflected in future cash flow forecast reports.

KEY PERFORMANCE INDICATORS

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

BCFPI ASSET SALE

56.           Pursuant to the terms of the Initial Order, the Petitioners are permitted to dispose of certain assets that are no longer required for their ongoing business without further approval of the Court, provided that each individual transaction be less than $10.0 million and less than $50.0 million in aggregate for all such dispositions and the Monitor approves of such disposition.

57.           In September, 2009, BCFPI executed a purchase and sale agreement to dispose of a tree nursery in Girardville, Quebec.  This transaction closed on September 5, 2009 and the proceeds of CDN$750,000 were received on September 17, 2009.  The Monitor reviewed the transaction and provided its consent.

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58.           The Monitor will report future de minimis asset sales to this Honourable Court as they occur.

UPDATE ON THE CLAIMS PROCEDURE

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

60.           Pursuant to the Claims Procedure Order, the Monitor took the following steps:

(i)             a notice to creditors of the Petitioners and Partnerships (the "Joint Notice to Creditors") was published on September 10, 2009 and September 15, 2009 in each of The Globe and Mail, Montreal Gazette, La Presse, Le Soleil, Le Quotidien, The Wall Street Journal and USA Today.

(ii)            on or before September 14, 2009, French and English versions of the Joint Notice to Creditors, the form to be completed and filed by a creditor setting forth its purported Claim or Subsequent Claim against a Petitioner or Partnership (the "Canadian Proof of Claim Form"), a letter regarding completion of a Canadian Proof of Claim Form against the Petitioners or Partnerships (the "Canadian Instruction Letter"), and the document package containing  a copy of a U.S. instruction letter and the form used to file a claim in the U.S. proceedings (the "U.S. Claims Package") (together the "Claims Package") were sent to the creditors of the Petitioners and Partnerships of whom the Monitor was aware as at August 31, 2009; and

-24-

(iii)            approximately 47,000 Claims Packages were mailed to various parties, including approximately 17,000 trade creditors, approximately 17,000 retirees and approximately 13,000 active  employees.

61.           As at September 29, 2009 the Monitor had received in excess of 220 Canadian Proof of Claim forms filed by claimants.  In addition the Monitor has received approximately 1,500 phone calls with respect to the Claims Procedure.

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

All of which is respectfully submitted.

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

Todd Ambachtsheer, CA, CIRP      
Vice President

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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.

 

-26-

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.

 

-27-

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

-28-

 

APPENDIX "D"

PARTNERSHIPS

1.	Bowater Canada Finance Limited Partnership
2.	Bowater Pulp and Paper Canada Holdings Limited Partnership
3.	Abitibi-Consolidated Finance LP

-29-

APPENDIX "E"

ACI GROUP ACTUAL RECEIPTS AND DISBURSEMENTS

Abitibi-Consolidated Inc. and its Subsidiaries (the "ACI Group")
Actual to Forecast Comparison
4 Weeks Ended September 20, 2009
US$000
	Actual					Forecast					Variance
Week Ended	30-Aug-09	6-Sep-09	13-Sep-09	20-Sep-09	Total	30-Aug-09	6-Sep-09	13-Sep-09	20-Sep-09	Total	30-Aug-09	6-Sep-09	13-Sep-09	20-Sep-09	Total
Opening Cash	36,407	64,519	119,615	105,296	36,407	36,407	41,241	90,091	94,440	36,407	-	23,278	29,524	10,856	-
Receipts
A/R Collections	39,871	47,608	25,848	41,434	154,761	34,350	39,734	40,573	51,763	166,420	5,521	7,874	(14,725)	(10,329)	(11,659)
Intercompany A/R  Settlement	15,846	1,089	2,912	9,115	28,962	-				-	15,846	1,089	2,912	9,115	28,962
Joint Venture Remittances, Net	(397)	-	-	(16,218)	(16,615)	(858)	58	61	(12,276)	(13,015)	461	(58)	(61)	(3,942)	(3,600)
Collections on Behalf of Joint Ventures	2,235	-	-	-	2,235	2,786	3,864	4,044	4,044	14,738	(551)	(3,864)	(4,044)	(4,044)	(12,503)
Net A/R Collections	57,555	48,697	28,760	34,331	169,343	36,278	43,656	44,678	43,531	168,143	21,277	5,041	(15,918)	(9,200)	1,200
Other Inflows	7,568	5,039	3,271	21,882	37,760	2,175	5,784	8,135	45,604	61,698	5,393	(745)	(4,864)	(23,722)	(23,938)
Total Receipts	65,123	53,736	32,031	56,213	207,103	38,453	49,440	52,813	89,135	229,841	26,670	4,296	(20,782)	(32,922)	(22,738)
Disbursements
Trade Payables	(31,106)	(30,581)	(32,999)	(37,917)	(132,603)	(23,991)	(25,464)	(26,059)	(26,059)	(101,573)	(7,115)	(5,117)	(6,940)	(11,858)	(31,030)
Intercompany A/P Settlement	8,979	9,385	4,726	2,384	25,474	-				-	8,979	9,385	4,726	2,384	25,474
Capital Expenditures	-	-	-	-	-	(1,496)	(1,539)	(1,546)	(1,546)	(6,127)	1,496	1,539	1,546	1,546	6,127
Net A/P Variance	(22,127)	(21,196)	(28,273)	(35,533)	(107,129)	(25,487)	(27,003)	(27,605)	(27,605)	(107,700)	3,360	5,807	(668)	(7,928)	571
A/R Collections - Affiliates	3,654	4,765	2,225	3,549	14,193	-	-	-	-	-	3,654	4,765	2,225	3,549	14,193
Intercompany A/R Settlements	(10,584)	(4,908)	(6,594)	(539)	(22,625)	-	-	-	-	-	(10,584)	(4,908)	(6,594)	(539)	(22,625)
	(6,930)	(143)	(4,369)	3,010	(8,432)	-	-	-	-	-	(6,930)	(143)	(4,369)	3,010	(8,432)
Marine Freight Payments	(1,592)	(1,592)	(2,905)	(711)	(6,800)	(1,050)	(1,050)	(1,050)	(1,050)	(4,200)	(542)	(542)	(1,855)	339	(2,600)
Utility Payments	(4,408)	(4,755)	(4,950)	(6,349)	(20,462)	(7,870)	(4,441)	(3,870)	(7,870)	(24,051)	3,462	(314)	(1,080)	1,521	3,589
Payroll & Benefits	(13,350)	(10,938)	(9,753)	(6,496)	(40,537)	(11,180)	(8,457)	(11,657)	(5,797)	(37,091)	(2,170)	(2,481)	1,904	(699)	(3,446)
Net Other Disbursements	(19,350)	(17,285)	(17,608)	(13,556)	(67,799)	(20,100)	(13,948)	(16,577)	(14,717)	(65,342)	750	(3,337)	(1,031)	1,161	(2,457)
Total Disbursements	(48,407)	(38,624)	(50,250)	(46,079)	(183,360)	(45,587)	(40,951)	(44,182)	(42,322)	(173,042)	(2,820)	2,327	(6,068)	(3,757)	(10,318)
Financing
Securitization Inflows / (Outflows)	2,968	(2,967)	4,973	1,227	6,201	2,968	(2,589)	(3,282)	(8,346)	(11,249)	-	(378)	8,255	9,573	17,450
Asset Sales	-	47,700	-	-	47,700	-	47,700	-	-	47,700	-	-	-	-	-
Adequate Protection by DCorp to ACCC Term Lenders	-	(3,498)	-	-	(3,498)	-	(3,537)	-	-	(3,537)	-	39	-	-	39
DIP Drawings / (Repayments)	10,000	-	-	-	10,000	10,000	-	-	-	10,000	-	-	-	-	-
DIP Interest & Fees	-	-	-	(204)	(204)	-	(213)	-	-	(213)	-	213	-	(204)	9
Restructuring & Other Items	(1,165)	(1,015)	(1,073)	(856)	(4,109)	(1,000)	(1,000)	(1,000)	(1,000)	(4,000)	(165)	(15)	(73)	144	(109)
Foreign Exchange Translation	(407)	(236)	-	-	(643)	-	-	-	-	-	(407)	(236)	-	-	(643)
	11,396	39,984	3,900	167	55,447	11,968	40,361	(4,282)	(9,346)	38,701	(572)	(377)	8,182	9,513	16,746
Cash Flow From Operations	28,112	55,096	(14,319)	10,301	79,190	4,834	48,850	4,349	37,467	95,500	23,278	6,246	(18,668)	(27,166)	(16,310)
Opening Cash Balance	36,407	64,519	119,615	105,296	36,407	36,407	41,241	90,091	94,440	36,407	-	23,278	29,524	10,856	-
Cash Flow From Operations	28,112	55,096	(14,319)	10,301	79,190	4,834	48,850	4,349	37,467	95,500	23,278	6,246	(18,668)	(27,166)	(16,310)
Ending Cash Balance	64,519	119,615	105,296	115,597	115,597	41,241	90,091	94,440	131,907	131,907	23,278	29,524	10,856	(16,310)	(16,310)
Note: The above totals are subject to rounding adjustments

-30-

    APPENDIX "F"

BCFPI ACTUAL RECEIPTS AND DISBURSEMENTS

Bowater Canadian Forest Products Inc. ("BCFPI")
Actual to Forecast Comparison
4 Weeks Ended September 20, 2009
US$000
	Actual					Forecast					Variance
Week Ended	30-Aug-09	6-Sep-09	13-Sep-09	20-Sep-09	Total	30-Aug-09	6-Sep-09	13-Sep-09	20-Sep-09	Total	30-Aug-09	6-Sep-09	13-Sep-09	20-Sep-09	Total
Opening Cash	(813)	7,522	11,651	6,194	(813)	(813)	9,959	17,532	28,009	(813)	-	(2,437)	(5,881)	(21,815)	-
Receipts
A/R Collections	1,422	4,668	1,291	1,091	8,472	12,051	9,452	12,596	15,019	49,118	(10,629)	(4,784)	(11,305)	(13,928)	(40,646)
Intercompany A/R Settlements	24,104	10,268	6,951	23,572	64,895	13,000	10,000	8,000	-	31,000	11,104	268	(1,049)	23,572	33,895
Total A/R Collections	25,526	14,936	8,242	24,663	73,367	25,051	19,452	20,596	15,019	80,118	475	(4,516)	(12,354)	9,644	(6,751)
Other Inflows	490	3,591	1,735	2,106	7,922	-	-	-	11,700	11,700	490	3,591	1,735	(9,594)	(3,778)
Total Receipts	26,016	18,527	9,977	26,769	81,289	25,051	19,452	20,596	26,719	91,818	965	(925)	(10,619)	50	(10,529)
Disbursements
Trade Payables	(8,932)	(7,116)	(8,933)	(12,870)	(37,851)	(8,835)	(7,422)	(6,961)	(6,961)	(30,178)	(97)	306	(1,972)	(5,909)	(7,672)
Intercompany A/P Settlements - Receipts	1,765	-	-	-	1,765	-	-	-	-	-	1,765	-	-	-	1,765
Intercompany A/P Settlements - Disbursements	(4,290)	(801)	(807)	(689)	(6,587)	-	-	-	-	-	(4,290)	(801)	(807)	(689)	(6,587)
Capital Expenditures	-	-	-	-	-	(452)	(465)	(467)	(467)	(1,851)	452	465	467	467	1,851
Payments on Behalf of Affiliates	(576)	(1,222)	(2,084)	(4,652)	(8,534)	-	-	-	-	-	(576)	(1,222)	(2,084)	(4,652)	(8,534)
Net A/P	(12,032)	(9,139)	(11,824)	(18,211)	(51,206)	(9,286)	(7,887)	(7,428)	(7,428)	(32,029)	(2,746)	(1,252)	(4,396)	(10,783)	(19,177)
A/R Collections - Affiliates	839	1,167	572	1,038	3,616	-	-	-	-	-	839	1,167	572	1,038	3,616
Intercompany A/R Settlements	(1,395)	(1,088)	(2,036)	(1,014)	(5,533)	-	-	-	-	-	(1,395)	(1,088)	(2,036)	(1,014)	(5,533)
	(556)	79	(1,464)	24	(1,917)	-	-	-	-	-	(556)	79	(1,464)	24	(1,917)
Intercompany SG&A Allocation	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Freight	(879)	(482)	(839)	(1,023)	(3,223)	(797)	(681)	(662)	(662)	(2,801)	(82)	199	(177)	(361)	(422)
Payroll and Benefits	(3,723)	(4,005)	(1,177)	(3,518)	(12,423)	(3,106)	(3,019)	(1,736)	(3,782)	(11,642)	(617)	(986)	559	264	(781)
Total Disbursements	(17,189)	(13,547)	(15,304)	(22,728)	(68,768)	(13,188)	(11,586)	(9,826)	(11,872)	(46,472)	(4,001)	(1,961)	(5,478)	(10,856)	(22,296)
Cash Flow From Operations	8,827	4,980	(5,327)	4,041	12,521	11,863	7,866	10,770	14,847	45,346	(3,036)	(2,886)	(16,097)	(10,806)	(32,825)
Financing
Interest	-	(748)	-	-	(748)	(798)	-	-	-	(798)	798	(748)	-	-	50
Restructuring Costs	(155)	(20)	-	(971)	(1,146)	(293)	(293)	(293)	(293)	(1,172)	138	273	293	(678)	26
Foreign Exchange Translation	(337)	(83)	(130)	(794)	(1,344)	-	-	-	-	-	(337)	(83)	(130)	(794)	(1,344)
Cash Flow from Financing/Restructuring	(492)	(851)	(130)	(1,765)	(3,238)	(1,091)	(293)	(293)	(293)	(1,970)	599	(558)	163	(1,472)	(1,268)
Net Cash Flows	8,335	4,129	(5,457)	2,276	9,283	10,772	7,573	10,477	14,554	43,376	(2,437)	(3,444)	(15,934)	(12,278)	(34,093)
Opening Cash Balance	(813)	7,522	11,651	6,194	(813)	(813)	9,959	17,532	28,009	(813)	-	(2,437)	(5,881)	(21,815)	-
Cash Flow From Operations	8,335	4,129	(5,457)	2,276	9,283	10,772	7,573	10,477	14,554	43,376	(2,437)	(3,444)	(15,934)	(12,278)	(34,093)
Ending Cash Balance	7,522	11,651	6,194	8,470	8,470	9,959	17,532	28,009	42,563	42,563	(2,437)	(5,881)	(21,815)	(34,093)	(34,093)
Note: The above totals are subject to rounding adjustments

-31-

APPENDIX "G"

ACI GROUP CASH FLOW FORECAST

Abitibi Consolidated Inc. and its subsidiaries (the "ACI Group")
Weekly Cash Flow Forecast
13 Weeks Ended December 20, 2009
US$000s
Week ended	Notes	27-Sep-09	4-Oct-09	11-Oct-09	18-Oct-09	25-Oct-09	1-Nov-09	8-Nov-09	15-Nov-09	22-Nov-09	29-Nov-09	6-Dec-09	13-Dec-09	20-Dec-09	Total
Opening Cash	1	115,598	115,685	108,300	151,283	136,744	143,913	139,644	146,123	139,008	121,035	112,449	105,394	100,660	115,598
Receipts
Total A/R Collections	3	30,343	43,036	40,908	46,973	53,505	47,160	31,159	30,208	37,536	29,748	29,789	31,074	30,110	481,547
Collections on Behalf of Joint Ventures	4	4,104	3,905	3,757	3,757	3,757	3,849	4,402	4,402	4,402	4,402	4,128	4,082	4,082	53,028
Other Inflows	5	5,312	2,233	38,231	2,175	2,175	5,437	6,009	2,241	2,175	2,175	2,237	2,236	2,175	74,810
Total Receipts		39,759	49,174	82,896	52,905	59,436	56,445	41,570	36,851	44,113	36,324	36,153	37,392	36,367	609,385
Disbursements
Trade Payables	6	(27,421)	(25,356)	(23,807)	(22,079)	(22,079)	(22,234)	(25,055)	(23,165)	(23,165)	(23,165)	(23,529)	(23,065)	(23,065)	(307,185)
Capital Expenditures	7	(1,546)	(1,517)	(1,496)	(1,496)	(1,496)	(1,503)	(1,546)	(1,546)	(1,546)	(1,546)	(1,503)	(1,496)	(1,496)	(19,733)
Marine Freight Payments	8	(1,300)	(1,300)	(1,300)	(1,300)	(1,300)	(1,300)	(1,300)	(1,300)	(1,300)	(1,300)	(1,300)	(1,300)	(1,300)	(16,900)
Utility Payments	9	(7,870)	(5,584)	(3,870)	(7,870)	(7,870)	(7,299)	(3,870)	(7,870)	(7,870)	(7,870)	(4,441)	(3,870)	(7,870)	(84,024)
Payroll & Benefits	10	(11,542)	(10,887)	(5,251)	(11,647)	(5,251)	(16,880)	(5,252)	(11,526)	(5,252)	(12,676)	(9,156)	(10,962)	(5,393)	(121,676)
Joint Venture Remittances, Net	11	(838)	-	-	(14,531)	(844)	-	-	-	(16,571)	(834)	-	-	(18,804)	(52,421)
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		(51,517)	(45,644)	(36,725)	(59,923)	(39,840)	(50,216)	(38,022)	(46,407)	(56,704)	(48,391)	(40,930)	(41,693)	(58,928)	(614,939)
Financing
Securitization Inflows / (Outflows)	13	11,846	(7,248)	(3,188)	(7,522)	(12,427)	(6,716)	2,931	2,442	(5,382)	3,480	1,390	(432)	859	(19,967)
Adequate Protection and fees by DCorp to ACCC Term Lenders	14	-	(3,431)	-	-	-	(3,537)	-	-	-	-	(3,431)	-	-	(10,399)
DIP Interest & Fees	15	-	(237)	-	-	-	(245)	-	-	-	-	(237)	-	-	(719)
Total Change in Cash		87	(7,385)	42,983	(14,540)	7,169	(4,269)	6,479	(7,115)	(17,973)	(8,586)	(7,055)	(4,733)	(21,701)	(36,639)
Ending Cash Balance (with ACI DIP Facility Draws)		115,685	108,300	151,283	136,744	143,913	139,644	146,123	139,008	121,035	112,449	105,394	100,660	78,959	78,959
Available Liquidity (Cash and Undrawn DIP)	16	148,385	141,000	183,983	169,444	176,613	172,344	178,823	171,708	153,735	145,149	138,094	133,360	111,659	111,659
Securitization Schedule	17
Allowable Receivable Pool Balance		133,487	126,239	123,050	116,369	103,943	97,227	100,158	103,368	97,986	101,466	102,856	103,161	104,021	104,021
Interest, Fees and Adjustments	18	-	-	-	(841)	-	-	-	(768)	-	-	-	(738)	-	(2,347)
Amount Drawn Under Facility		121,641	133,487	126,239	123,050	116,369	103,943	97,227	100,158	103,368	97,986	101,466	102,856	103,161	121,641
Availability / (Required Repayment)		11,846	(7,248)	(3,188)	(7,522)	(12,427)	(6,716)	2,931	2,442	(5,382)	3,480	1,390	(432)	859	(19,967)
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.

-32-

Abitibi Consolidated Inc. and its subsidiaries (the "ACI Group")

Notes to Weekly Cash Flow Forecast

13 Weeks Ended December 20, 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, insurance proceeds or collection/management fees received from Joint Ventures, as estimated by the ACI Group. Included in Other Inflows for the week ended October 11, 2009, is $36 million representing the receipt of refunds related to tax credits from the Quebec provincial government.
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 and a disbursement of $1.8 million in the week ended November 8, 2009 representing the settlement of intercompany SG&A.
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 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.	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. This forecast does not reflect the repayment of the ACI DIP Facility on November 1, 2009 which is the date by which it must be repaid, in accordance with its terms. The ACI Group has indicated that it anticipates that amounts outstanding under the ACI DIP Facility will be repaid with the proceeds of the sale of the ACI Group's 60% interest in the Manicouagan Power Company ("MPCo"). This forecast does not include proceeds from the sale of MPCo.
17.	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).
18.	The Interest, Fees and Adjustments represent interest and fees related to the Amended Securitization Program.

-33-

  APPENDIX "H"

BCFPI CASH FLOW FORECAST

Bowater Canadian Forest Products Inc.
Chapter 11/CCAA Cash Flow
13 Week Period Ended December 20, 2009
US$000s
Week Ended		27-Sep-09	4-Oct-09	11-Oct-09	18-Oct-09	25-Oct-09	1-Nov-09	8-Nov-09	15-Nov-09	22-Nov-09	29-Nov-09	6-Dec-09	13-Dec-09	20-Dec-09	Total
Receipts	Notes
Trade Receipts	1, 2	5,674	14,056	7,820	24,667	8,781	13,710	10,460	21,571	12,059	15,199	13,711	23,792	11,476	182,974
Settlement Proceeds	3	-	25,585	-	-	-	-	-	-	-	-	-	-	-	25,585
Intercompany A/R Settlements	4	4,000	-	-	-	-	-	-	-	-	-	-	-	-	4,000
Intercompany A/P Settlements	4	4,000	4,000	-	-	-	-	-	-	-	-	-	-	-	8,000
Advances from Bowater Inc.	5	-	-	-	-	-	6,000	6,000	-	2,000	2,000	5,000	(5,000)	-	16,000
Other Receipts	6	-	-	11,700	-	-	-	-	-	-	-	-	-	-	11,700
Total Receipts		13,674	43,641	19,520	24,667	8,781	19,710	16,460	21,571	14,059	17,199	18,711	18,792	11,476	248,259
Disbursements
Trade Payables	7	(7,416)	(10,545)	(12,428)	(12,428)	(12,428)	(12,471)	(12,733)	(12,733)	(12,733)	(12,733)	(11,046)	(10,765)	(10,765)	(151,221)
Intercompany SG&A Allocation	8	(400)	-	-	-	-	-	-	-	-	-	-	-	-	(400)
Freight	9	(895)	(1,225)	(1,472)	(1,472)	(1,472)	(1,469)	(1,452)	(1,452)	(1,452)	(1,452)	(1,285)	(1,257)	(1,257)	(17,610)
Payroll and Benefits	10	(1,736)	(4,981)	(1,733)	(3,780)	(1,733)	(4,981)	(1,736)	(3,782)	(1,736)	(2,410)	(4,306)	(2,408)	(3,106)	(38,427)
Capital Expenditures	11	(467)	(458)	(452)	(452)	(452)	(454)	(467)	(467)	(467)	(467)	(454)	(452)	(452)	(5,957)
Interest	12	(350)	(881)	-	-	(338)	(881)	-	-	(338)	-	(1,028)	-	-	(3,815)
Restructuring Costs	13	(293)	(293)	(293)	(293)	(293)	(293)	(293)	(293)	(293)	(293)	(293)	(293)	(293)	(3,803)
Settlement Disbursements to Trust	3	-	(25,585)	-	-	-	-	-	-	-	-	-	-	-	(25,585)
Total Disbursements		(11,555)	(43,968)	(16,377)	(18,424)	(16,715)	(20,548)	(16,679)	(18,726)	(17,017)	(17,354)	(18,411)	(15,174)	(15,871)	(246,818)
Cash Flow from Operations		2,119	(327)	3,143	6,243	(7,933)	(838)	(220)	2,845	(2,958)	(155)	301	3,618	(4,395)	1,441
Opening Bank Balance		8,473	10,592	10,265	13,408	19,651	11,718	10,879	10,660	13,504	10,546	10,391	10,691	14,309	8,473
Cash Flow		2,119	(327)	3,143	6,243	(7,933)	(838)	(220)	2,845	(2,958)	(155)	301	3,618	(4,395)	1,441
Closing Bank Balance	2	10,592	10,265	13,408	19,651	11,718	10,879	10,660	13,504	10,546	10,391	10,691	14,309	9,914	9,914
Settlement Proceeds Held in Trust by Monitor	14	-	25,585	25,585	25,585	25,585	25,585	25,585	25,585	25,585	25,585	25,585	25,585	25,585	25,585
Closing Bank Balance including Settlement Proceeds		10,592	35,850	38,993	45,236	37,303	36,464	36,245	39,089	36,131	35,976	36,276	39,895	35,500	35,500
Current Revolving Credit Facility
Current Credit Facility Balance, Opening		94,576	94,576	94,576	94,576	94,576	94,576	94,576	94,576	94,576	94,576	94,576	94,576	94,576	94,576
Current Credit Facility Drawings / (Repayments)		-	-	-	-	-	-	-	-	-	-	-	-	-	-
Current Credit Facility L/C Drawings / (Repayments)		-	-	-	-	-	-	-	-	-	-	-	-	-	-
Current Balance, Closing		94,576	94,576	94,576	94,576	94,576	94,576	94,576	94,576	94,576	94,576	94,576	94,576	94,576	94,576
Intercompany A/R Balance	15
Ending Balance		50,352	50,866	55,499	56,348	59,534	60,046	62,026	63,378	64,483	64,068	63,534	62,766	63,087	63,087
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.

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Bowater Canadian Forest Products Inc. ("BCFPI")

Notes to CCAA Cash Flow

13 Week Period Ended December 20, 2009

US$000s

1.	Trade Receipts are based on BCFPI's estimate of collection terms and BCFPI's latest sales forecast.
2.	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.
3.	Settlement Proceeds represent funds to due BCFPI pursuant to an agreement it has with Smurfit-Stone Container Canada Inc. ("Smurfit"). The agreement between BCFPI and Smurfit has been approved by courts in both Canada and the U.S. in both BCFPI's and Smurfit's respective insolvency proceedings. The ultimate timing of this receipt is not yet known, but an amount has been reflected in the week ended October 4, 2009. Pursuant to an order issued in BCFPI's CCAA proceeding by the Superior Court of Quebec, BCFPI's CCAA Monitor will hold the funds in trust until such time as there is certainty with respect to the disposition of such funds pursuant to an order of the court. The Smurfit funds are currently held up due to the existence of certain liens / hypothecs that are to be removed by Smurfit.
4.	Intercompany A/R and A/P Settlements represent funds received by BCFPI in settlement of intercompany balances with BI.
5.	Advances from Bowater Inc. represents amounts received pursuant to the BI/BCFPI DIP Facility.
6.	Other Receipts include amounts received for refunds in respect of road tax credits from the Quebec provincial government.
7.	Trade Payables represent payments for raw materials, repairs and maintenance, utilities and other production items.
8.	Intercompany SG&A Allocation represents expenses incurred by BCFPI's parent company on behalf of BCFPI which are charged to BCFPI in the week ended September 27, 2009, pursuant to its normal process for the allocation of such costs.
9.	Freight represents disbursements in respect of costs to deliver product to customers.
10.	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.
11.	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.
12.	Interest represents interest costs for the company's senior secured revolving facility, the existing secured term loan and the new DIP facility.
13.	Restructuring Costs represent costs related to the restructuring including transaction fees related to the new DIP facility.
14.	Settlement Proceeds Held in Trust do not form part in the Total Ending Cash Balance.
15.	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 pursuant to the BI/BCFPI DIP Facility.

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APPENDIX "I"

KEY PERFORMANCE INDICATORS

ACI Group
KPI Analysis
Newsprint, Specialty Paper & Pulp
Sales tonnage (MT)	January	February	March	April	May	June	July	August	Total
Newsprint	95,561	109,805	115,877	96,250	99,548	107,024	98,331	86,853	809,248
Specialty Paper	99,378	84,047	91,929	82,694	84,284	91,139	103,444	112,041	748,954
Pulp	2,573	4,364	2,645	3,332	4,392	3,882	4,619	6,793	32,599
	197,512	198,215	210,450	182,276	188,223	202,044	206,393	205,687	1,590,801
Net sales (US$000)	January	February	March	April	May	June	July	August	Total
	154,055	153,360	161,003	127,136	127,879	139,103	133,736	131,245	1,127,517
Net selling price per tonne (US$)	January	February	March	April	May	June	July	August	Total
	780	774	765	697	679	688	648	638	709
Mill Uptime (%)	January	February	March	April	May	June	July	August	Total
	70	78	76	78	78	76	77	82	77
Lumber
Sales  (mmbf)	January	February	March	April	May	June	July	August	Total
	58	60	68	61	62	64	62	69	504
Net sales (US$000)	January	February	March	April	May	June	July	August	Total
	15,153	14,356	16,868	16,161	16,893	18,261	18,933	21,022	137,646
Sales per mbf (US$)	January	February	March	April	May	June	July	August	Total
	260	241	249	265	271	285	306	304	273

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Bowater Canadian Forest Products Inc.
KPI Analysis
Newsprint, Specialty Paper & Pulp
Sales tonnage (MT)	January	February	March	April	May	June	July	August	Total
Newsprint	40,281	16,277	37,216	35,685	37,851	32,488	39,356	33,141	272,295
Specialty Paper	19,605	17,960	18,644	20,608	20,242	12,758	6,081	3,316	119,214
Pulp	23,816	17,478	18,914	20,083	24,923	20,243	36,817	29,269	191,543
	83,703	51,715	74,774	76,376	83,016	65,489	82,254	65,726	583,052
Net sales (US$000)	January	February	March	April	May	June	July	August	Total
	57,535	34,757	49,972	47,329	48,904	37,331	45,046	35,272	356,146
Net selling price per tonne (US$)	January	February	March	April	May	June	July	August	Total
	687	672	668	620	589	570	548	537	611
Mill Uptime (%)	January	February	March	April	May	June	July	August	Total
	83	80	84	84	84	85	56	58	84
Lumber
Sales  (mmbf)	January	February	March	April	May	June	July	August	Total
	27	30	34	27	35	34	32	30	250
Net sales (US$000)	January	February	March	April	May	June	July	August	Total
	5,514	6,049	7,095	5,694	7,621	7,997	8,020	7,372	55,362
Sales per mbf (US$)	January	February	March	April	May	June	July	August	Total
	206	199	206	207	221	235	250	245	222

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