* Newfoundland loses appeal in Abitibibowater case
* Issue was whether environmental duty gets reduced in
OTTAWA Dec 7 The Supreme Court of Canada ruled
on Friday in favor of newsprint maker Abitibibowater Inc, which
now operates as Resolute Forest Products Inc , in
a case on liability for environmental cleanup costs in
The case centered on whether a company's duty to remove
environmental contamination is like a commercial debt or another
financial claim that can be reduced or eliminated when a company
goes through bankruptcy proceedings. Montreal-based
Abitibibowater was under bankruptcy protection in 2009-2010.
Canada's top court decided in favor of Abitibibowater.
Canadian media had reported before the decision was
announced that Abitibibowater's clean-up liablity could have
been up to C$200 million ($200 million).
The case is Her Majesty the Queen in Right of the Province
of Newfoundland and Labrador v Abitibibowater Inc. et al (Que)