AbitibiBowater to renegotiate terms of Saguenay hydro assets rather than sell [From the web]

MONTREAL, June 10, 2011 (Local News) - AbitibiBowater plans to hold onto its Quebec hydro assets but will push to reduce the investments it is legally required to make in the facilities, it told employees and shareholders attending a closed door meeting Thursday.

According to those who attended the meeting, CEO Richard Garneau said the company has no plans to sell the hydro facilities in the Saguenay region.

However, he indicated a desire to renegotiate a lease expiring in December that requires the company to invest hundreds of millions of dollars in the facilities on the Shipshaw River through 2022.

The agreement would force AbitibiBowater (TSX:ABH) to spend about $400 million, but Garneau suggested the costs could reach $700 million, far too much for a company that just exited creditor protection.

Winnipeg Free Press - AbitibiBowater won't sell Quebec hydro assets but is renegotiating investments

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