Summary of Trustee, SEC, and Lawyer contact

It has been a busy week for Abi and the Alliance. I would first like to thank everyone for all your support and words of encouragement, now for the summary.

We placed a call to the US Trustee, Mr. Klauder and we had to leave a message. A couple hours later he returned our phone call. He stated that they have received our request and that we do not need to file a motion at this time. He stated that he has received a response from Abi and is waiting on a response from the unsecured creditors before he makes his decision. We discussed the importance of the May 5th date and he stated that he will make the decision before that time. When we asked how he would notify us, it can be by mail, phone, email, etc. He stated he would notify us via email if we would give our address, which of course we did. Both Henry and I feel confident that we will receive an answer before the May 5th date, so that is the time table we are working on. He was polite and friendly, but professional. He and the judge are aware of our position and I do not believe it will benefit us to continue to bombard them with mail. I do believe the letter writing campaign has had a positive impact and thank you all for writing your letters. For now we will let him make up his mind, and as soon as we know, we will let the board know. All and all it was a good conversation, we talked for about 20 minutes and he verified our shareholder status and the size and make-up of the alliance.

We also talked to the SEC case manager in this case, Mr. Alan Maza. He also returned our message a couple hours later. He stated that the trading report Henry and I did several months ago has been forwarded to the division of Risk Strategy and Financial Innovation of the SEC. He stated that we will receive an email with more details in the next couple of weeks to set up a teleconference with that division to discuss our allegations. He stated the SEC will not intervene with the formation of an EC in this case and the decision is currently up to the US Trustee and courts. It was a good conversation, but they are concerned with the trading, not the EC.

Finally we chatted with a lawyer on Friday. He confirmed what the US Trustee stated to us on the phone. The first thing to do if we do not agree with the decision is file a motion and put it before the judge. If the EC is denied we do have options. The important thing which came out was that the proper steps have been taken by us and the Alliance to petition for an EC. Now the hard part, we are in a wait and see holding pattern until the US Trustee renders his decision. I hope this summary begins a dialog and if you have any questions let us know.

Henry and I know there are no guarantees in life especially with Qs, but it has been a good couple of days. Now the hard part, waiting and then moving forward from there. Hopefully we have a green week, Liz

Transcript DIP Extension Hearing

This is the link to the transcript of the hearing regarding the motion to extend the DIP Facility Fund for Boawater. Not much intersting, but would like everyone's comments. GLTA - H

Transcript

Important Update

We just received correspondence from the Monitor's counsel today. One of the members of IHUB relayed this information to us. Apparently it is inappropriate to correspond to any Canadian Judge directly so... if you haven't sent in your letters to the Canadian Judge, don't. The monitor is aware of our plea and will note it in the next report, but states we need a motion before the Canadian Court before it will be further considered.

This is not a surprise, since Canada does not have a vehicle for an Equity Committee. Many on the board have been wondering if it is time for us to consider getting some legal counsel, and I think it is time to get some guidance.

The US Trustee and Courts are considering our request and you need to continue to write the US Trustee if you already have not. We want to keep you posted good, bad, and indifferent. This was not unexpected, a little disappointing but, not a death knell.

Letter to AbitibiBowater (via Duane Owens) Re: EC - UPDATED

UPDATED: PLEASE PLEASE PLEASE provide comments by 3:30P CT (4:30P ET)to give us time to fax/email this to him today 4/8/2010. THANKS

Duane EC Letter

Initial Trustee Response Letter

Below is the link to the letter we recently received from the US Trustee in response to the letter and packet we sent. You will notice we forgot a little something...oopsie! We did send a response which is in the second link.

Pay close attention to the first sentence of the last paragraph in which it says "this is the initial information that our office must have to properly evaluate the equity committee request...".

Initial Trustee Response Letter

Response Letter to the Trustee

p.s. no we did not send it with xxxxxx!!!

Have a great Easter Weekend