Scribd Logo
Upload

Welcome to Scribd!

  • 60 views

    Monitor EC Letter Template

    Uploaded by

    ergodoc
    This letter requests the appointment of an Equity Committee in the AbitibiBowater bankruptcy proceedings. It notes that while the CCAA does not specifically allow for equity committees, one is warranted here given the international nature, complexity, and apparent equity involved in this case. The letter asks the recipient to review materials previously sent by Elizabeth and Henry Romero arguing for an Equity Committee, which provide an analysis of serious trading problems with AbitibiBowater stock and that the company will have significant equity upon emergence from bankruptcy. The writer and an alliance of other shareholders request representation equal to that of other committees in the reorganization process.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd

    Monitor EC Letter Template

    Uploaded by

    ergodoc
    60 views2 pages
    This letter requests the appointment of an Equity Committee in the AbitibiBowater bankruptcy proceedings. It notes that while the CCAA does not specifically allow for equity committees, one is warranted here given the international nature, complexity, and apparent equity involved in this case. The letter asks the recipient to review materials previously sent by Elizabeth and Henry Romero arguing for an Equity Committee, which provide an analysis of serious trading problems with AbitibiBowater stock and that the company will have significant equity upon emergence from bankruptcy. The writer and an alliance of other shareholders request representation equal to that of other committees in the reorganization process.

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOC, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This letter requests the appointment of an Equity Committee in the AbitibiBowater bankruptcy proceedings. It notes that while the CCAA does not specifically allow for equity committees, one is warranted here given the international nature, complexity, and apparent equity involved in this case. The letter asks the recipient to review materials previously sent by Elizabeth and Henry Romero arguing for an Equity Committee, which provide an analysis of serious trading problems with AbitibiBowater stock and that the company will have significant equity upon emergence from bankruptcy. The writer and an alliance of other shareholders request representation equal to that of other committees in the reorganization process.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    60 views2 pages

    Monitor EC Letter Template

    Uploaded by

    ergodoc
    This letter requests the appointment of an Equity Committee in the AbitibiBowater bankruptcy proceedings. It notes that while the CCAA does not specifically allow for equity committees, one is warranted here given the international nature, complexity, and apparent equity involved in this case. The letter asks the recipient to review materials previously sent by Elizabeth and Henry Romero arguing for an Equity Committee, which provide an analysis of serious trading problems with AbitibiBowater stock and that the company will have significant equity upon emergence from bankruptcy. The writer and an alliance of other shareholders request representation equal to that of other committees in the reorganization process.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    March 16, 2010

    Attn: Mr. Alex F. Morrison


    Ernst & Young LLP
    222 Bay Street
    Toronto, Ontario M5K 1J7
    Canada
    Ref.: Province of Quebec, District of Montreal, No.: 500-11-036133-094

    RE: Appointment of an Equity Committee in the AbitibiBowater, Inc., Bankruptcy


    Proceedings

    Dear Mr. Morrison:

    I am currently a shareholder of AbitibiBowater and am writing you to request the appointment of


    an Equity Committee in that bankruptcy case. I understand that the CCAA does not specifically
    allow for equity committees; however because of the international nature, complexity, and
    apparent equity involved in this case, I believe it is warranted here.

    It is my understanding you already received a packet of materials and a formal request from
    Elizabeth & Henry Romero who are the points-of-contact for our informal alliance. I further
    understand that a Consultative Committee of non-unionized past and present employees was
    recently appointed in which it was argued that various and diverse groups of stakeholders would
    be affected. The common shareholders are the latest of those stakeholders to request formal
    representation in the reorganization process.

    Pursuant to this request, I ask that you review the materials sent to you by Mrs. Elizabeth
    Romero and Dr. Henry Romero on March 15, 2010, that detail the arguments for granting an
    Equity Committee. These materials are very clear and include a thorough analysis of the serious
    trading problems associated with this stock including shorting to manipulate the price and naked
    short selling. The analysis also demonstrates the undeniable fact that the company will have
    significant equity upon emergence.

    It is important to note that the reason I and others in this Alliance remain invested in
    AbitibiBowater these many months is the fact that the company did not enter bankruptcy due to
    insolvency but rather due to low liquidity in a global recession. Low liquidity combined with
    credit default swaps pushed AbitibiBowater into bankruptcy shortly after they merged, but with
    the global paper market tightening, pulp supplies shortening, and lumber demands growing to
    levels reminiscent of 1996 levels, AbitibiBowater expects to come roaring back to its previous
    earnings levels that saw share prices in the $40 USD range.

    An important fact of record is that there are no preferred shares in this company; our shares and
    that of all of the Alliance are the same as all other shareholders in this company. I and the rest of
    this Alliance are just as much stakeholders as union employees, non-union employees, past
    employees, Directors and bondholders. The lack of preferred shares means that there is an equal
    priority for claims against the shareholder equity of AbitibiBowater during reorganization.
    While there is this equal priority of claim, there is not an equal level of representation. With this
    request, I implore the court to not discriminate against the Alliance in this reorganization
    process.

    The committees currently having a formal role in this process are defending their rights and have
    picked and chosen their representatives in this process. They do not necessarily represent this
    alliance’s interests. I implore AbitibiBowater and the court to accept the Alliance at the table as
    you have those other groups.

    Thank you very much for your valuable time and careful consideration of this request. Given
    that the plan of reorganization is expected within the next few months and negotiations to
    finalize its details are undergoing, I and the rest of the Alliance anticipate the courtesy of a swift
    decision in this matter.

    Respectfully submitted,

    You might also like