US lenders have extended the company's deadline from 25 March to 5pm, New York City time today (27 March).

This has given the group additional time to implement a refinancing plan, which will restructure its multibillion-dollar debt.

AbitibiBowater spokesman Seth Kursman said: "Essentially, over the past couple of weeks we have laid out comprehensive plans to address debt maturities on both the Abitibi-consolidated and Bowater sides of the company.  At this juncture, we are aggressively working the plans we have announced."

Reports in American and Canadian press have claimed the company could be forced to file for bankruptcy protection if it is unable to restructure its debts. Kursman declined to comment on the reports.

AbitibiBowater produces a range of newsprint and commercial printing papers, market pulp and wood products.

It is seeking to restructure its debts in the face of falling newspaper demand and a weakening economy.

It completed the merger of equals of Abitibi-Consolidated and Bowater in November 2007 and is now the eighth largest publicly traded pulp and paper manufacturer in the world.

It is also among the world's largest recyclers of newspapers and magazines, and owns or operates 24 pulp and paper facilities and 30 wood products facilities in the US, Canada, the UK and South Korea.

Also see:
Refinancing at AbitibiBowater
AbitibiBowater announces cuts