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<br />Sun. <br /> <br />Canadian mills now face another obstacle with the United States offering $6 billion or more <br />in tax credits to the U.S. pulp and paper industry in the form of a black liquor subsidy. The <br />move will cut production costs for American producers and threatens the existence of <br />Canadian pulp mills and the sawmills that supply them with wood chips. <br /> <br />Cummings said a restructuring of Abitibi could also impact pension holders. Pensioners are <br />unsecured creditors and secured creditors get a bigger percentage of what is owed them, <br />according to Concordia University finance professor Lawrence Kryzanowski. "I would <br />think that it will mean some decrease in pensions for current and future retirees," he told the <br />Vancouver Sun. <br /> <br />Cumming said there is some reason for optimism that the Fort Frances mill would survive a <br />restructuring. The company recently invested $80 million in improvements in the mill and <br />the mill, which produces paper for books, has been profitable. <br /> <br />Even so, union workers may find themselves back at the bargaining table as a result of <br />restructuring. Although the courts can not order unions to renegotiate contracts, Cumming <br />said the company may argue that new labor agreements are essential to the company's <br />survival. <br /> <br />"It could come down to keeping a job for less payor not having a job at all," he said. <br /> <br />How long the restructuring process will take is not known. <br /> <br />"Weare going to work on putting together a plan that has to be accepted by creditors and <br />both the courts in the U.S. and Canada," said company spokesman Seth Kursman. "We <br />believe that we have a strong portfolio of assets, an incredible resource of people, and if <br />you look at what makes up Abitibi Bowater today, this company can have a very bright <br />future. " <br />