Largest North American Newsprint Manufacturer Files for Chap. 11

AbitibiBowater, the company created when Bowater Inc. merged with Abitibi-Consolidated last October, filed for bankruptcy in the United States. The Montreal-based company that is North America’s third-largest producer of pulp and paper will file for bankruptcy in Canada on Friday. Normal operations are expected to continue while the company restructures.
This is the clearest sign yet that the struggles of the newspaper and magazine world are going beyond the media world. Pulp shipments in December 2008 were down 9.5 percent from the year earlier, and prices fell 20 percent.
AbitibiBowater has seen its stock price plummet from almost $14 per share in July to $.53 per share earlier today when trading was halted.