AbitibiBowater Inc agreed to sell its 75 percent interest in the Ontario hydroelectric project to a consortium formed by a major Canadian institutional investor and a private renewable energy company for cash proceeds of C$300 million ($303.6 million). The newsprint maker, which emerged from bankruptcy in December, said it will use $100 million from the sale of ACH Ltd Partnership immediately to reduce debt while the rest will be used to enhance liquidity and for general corporate purposes. Following the completion of the transaction, expected in the next 60 days, ACH LP will continue to supply electricity to AbitibiBowater Canada Inc.'s Fort Frances and Iroquois Falls pulp and paper mills.
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