With AbitibiBowater’s stock price and credit ratings falling dramatically, the company may be headed towards bankruptcy unless they find additional sources of funding by May. This province must develop a contingency plan should that happen, says Opposition Leader Yvonne Jones. Jones raised the issue earlier today in the House of Assembly.

During the past year, AbitbiBowater has seen their share price drop from a high of $26.00 to a low of 34 cents where it sits today. Standard and Poor’s Credit Rating Service has also lowered the company’s long-term corporate credit rating two notches to CCC from B- with a negative outlook.

“The workers of AbitibiBowater must be given ultimate consideration should the company declare bankruptcy in the future,” said Ms. Jones. “Some people have expressed uncertainty as to whether severance and pension agreements would be honoured if the company declared bankruptcy. Government must review the agreements in place to ensure workers are protected and prepare contingency plans that could help alleviate any immediate financial blow to the workforce.”

Jones also noted that government must review their options related to timber, land rights, power facilities and assets to ensure any potential bankruptcy action would not result in the loss of those assets.

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