(OTTAWA) – June 17, 2009 – Export Development Canada (EDC) today announced it provided USD 42.1 million as part of a USD 270 million syndicated Debtor in Possession (DIP) facility for Abitibi Consolidated Inc. (Abitibi).
“EDC and Abitibi have a longstanding relationship, so EDC was happy that it could help provide some much needed support at a critical time in its restructuring efforts,” said Eric Siegel, President and CEO of EDC.
The DIP will provide Abitibi with working capital financing to maintain on-going liquidity while under the Companies' Creditors Arrangement Act (CCAA) and Chapter 11 in the U.S.
The transaction marks EDC's first participation in a syndicated DIP facility.
“EDC has been a trusted partner for more than 40 years and its support of our risk management and financing programs is very much appreciated,” said William Harvey, Senior Vice President and Chief Financial Officer of AbitibiBowater.
EDC is Canada's export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business. EDC's knowledge and partnerships are used by more than 8,300 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining, a recognized leader in financial reporting and economic analysis, and has been recognized as one of Canada's Top 100 Employers for eight consecutive years.
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Media contact:
Phil Taylor
Export Development Canada
Tel: (613) 598-2904
Blackberry: ptaylor@edc.ca
