Court Victory for AbibitiBowater

AbitibiBowater won its second court victory in as many days today when a Quebec judge allowed the cash-strapped forestry company to suspend special payments to its pensions.
Justice Daniele Mayrand determined that such payments represent past service, which don’t have to be paid while the insolvent company is under court creditor protection.
The company’s request had been opposed by its unions.
The unions said AbitibiBowater’s pension plans are already underfunded by $1.4-billion and will only go further in the hole during the restructuring process without the payments.
The decision doesn’t affect pension payments to current retirees.
AbitibiBowater is still required to make regular payments to the plans.