Jul 09, 2010. /Lesprom Network/. AbitibiBowater could emerge from bankruptcy protection in October if creditors vote in August to approve the newsprint producer's restructuring plan, the Canadian Press reports. The Montreal-based company has been under court protection in Canada and the United States since April 2009. Following the creditor's meeting in late August, the Quebec Superior Court and the U.S. Bankruptcy Court would meet in early September to endorse the restructuring plan. The restructuring plan will see AbitibiBowater's debt decrease from $6.5 billion to $1.6 billion as it pays off secured creditors and debtor-in-possession financing. It will also offer up $500 million in new convertible notes to eligible unsecured creditors. Unsecured creditors will receive between nothing and 48% when their debt is converted to equity, depending on their class. The company has obtained the support of its main bondholders and the unsecured creditors committee in the U.S. The committee's endorsement is particularly significant because it's very rare for a U.S. bankruptcy judge to go against a plan approved by such a committee, the story notes. The reorganized company hopes to capitalize on export market opportunities and promising growth markets for paper used in catalogues, magazine inserts, direct mail, inkjet paper and paper packaging.