WILMINGTON, Del. (CN) – Abitibi Bowater, the world’s largest newsprint maker, filed for bankruptcy, listing more than $2 billion in debts. Demand for newsprint in the United States has fallen by nearly 50% since its peak in 1987. The recession whacked demand as newspaper circulation tumbled in 2008, and demand for newsprint is expected to continue plummeting this year.
Donohue Corp. which Abitibi acquired in 2000, also filed for bankruptcy protection, as did a slew of Abitibi subsidiaries.