AbitibiBowater shareholder in favor of equity committee formation

By Lisa Kerner

Charlotte, N.C., Aug. 9 - AbitibiBowater Inc. shareholder Peter I. Shah asked the court to reconsider the July 16 motion of certain investors to appoint an official equity committee, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

On Aug. 4 the court denied the request to appoint an equity committee.

As previously reported, AbitibiBowater and its official committee of unsecured creditors objected to the motion for appointment of an official equity holders committee.

Shah believes that AbitibiBowater is solvent and owns assets in excess of total outstanding debt, including timber rights.

Shah owns 138,500 shares and three debt securities with a total face amount of bonds of $55,000, the filing said.

AbitibiBowater, a Montreal-based producer of newsprint, commercial printing papers, market pulp and wood products, filed for bankruptcy on April 16, 2009. Its Chapter 11 case number is 09-11296.

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