AbitibiBowater, a paper products company, is trying to hammer out a deal with relationship banks over a new credit line to help it refinance debt maturing this year and ultimately stave-off the threat of default.

The company, formed in January last year through the merger of Abitibi-Consolidated and Bowater, said in statement yesterday that it will postpone the announcement of its full-year results this week because it needs more time to finalise the accounting details following the completion of the merger in the fourth quarter.