AbitibiBowater closes sale of power plant

AP News
Posted: Dec 09, 2009 6:00 PM

Canadian pulp and paper maker AbitibiBowater Inc. said on Wednesday it has sold its stake in a hydroelectric power plant to Hydro-Quebec for 615 million Canadian dollars ($582.9 million).

AbitibiBowater had what it called an "indirect interest" in 60 percent of a plant on Canada's Manicouagan River with the capacity to generate 335 megawatts of electricity.

The company said it will use the proceeds from the sale to repay a $100 million debtor-in-possession loan and other debt.

The effect of the transactions would be to provide its Abitibi-Consolidated subsidiary with about 168 million Canadian dollars ($159.2 million), the company said.

AbitibiBowater shares rose 5 cents to close at 17 cents.