The company announced today that it and its US and Canadian subsidiaries have filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code and the Canadian equivalent.

AbitibiBowater's subsidiaries located outside the US and Canada are not included in the filing.

The company had hoped to implement a refinancing plan that would have restructured its multibillion-dollar debt. However, it has concluded there are "no viable alternatives", and has determined that the best course of action is to pursue its overall restructuring under court supervision in the US and Canada.

In a statement, it said it will use the process to deal decisively with its debt burden for the benefit of all stakeholders. Normal day-to-day operations will continue during the restructuring process.

David Paterson, president and chief executive, said: "Today's announced decisions ensure business continuity for AbitibiBowater and were made only after all other viable options to recapitalise our long-term debt were exhausted."

Dick Evans, chairman of the board of directors, said: "The board and management believe the actions initiated today will allow the company to make the necessary changes to ensure the long-term viability of the company within a process that ensures fair and equitable treatment for all stakeholders, while allowing it to continue to meet the needs of its customers."

In March, AbitibiBowater negotiated a further extension to implement a debt exchange refinancing plan.

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

It completed the "merger of equals" of Abitibi-Consolidated and Bowater in November 2007 and became 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.