New York Stock Exchange flags Abitibi over slumping share price

The New York Stock Exchange has put Montreal-based AbitibiBowater Inc. on notice that the pulp and paper giant no longer meets its listing criteria.

AbitibiBowater, which trades on both the Toronto Stock Exchange and the NYSE, said in a release it has "fallen below its continued listing criteria," meaning the company has traded below $1 for 30 consecutive trading days.

AbitibiBowater, which has been slashing production amid mounting losses, has six months to bring its stock price up to standard.

CEO David Paterson said the company is committed to turning around its fiscal fortunes.

"Our stock price has been pressured by an unprecedented period of economic difficulty and market uncertainty that is impacting many companies and their share-price performance in our industry and others," Paterson said.

"We are taking proactive steps to address the matter and are encouraged by our quarter-over-quarter improvements and the progress we have made and continue to make in improving our operating and financial performance," said Paterson, adding the company is trying to rid itself of $1 billion of debt.

Earlier this month, Abitibi announced it would permanently close two mills, one of which is in Canada. The century-old mill in Grand Falls-Windsor will stop production by the end of March.

Abitibi, meanwhile, is seeking legal advice in Canada and in the U.S. on the Newfoundland and Labrador legislature's expropriation this week of the company's timber and water resources because of the mill closure

Abitibi has said the government's move may not survive a challenge under the North American Free Trade Agreement.