Abitibi bonds plunge on refinancing plan

NEW YORK, March 7 (Reuters) - Short-dated bonds of Abitibi-Consolidated Inc, part of AbitibiBowater Inc (ABH.N: Quote, Profile, Research) (ABH.TO: Quote, Profile, Research), plunged on Friday after the company said it will seek to pay back the debt with a mixture of cash and new debt as part of a refinancing plan.

Abitibi Consolidated's 6.95 percent bonds due 2008 dropped 14 cents on the dollar to 79 cents, according to MarketAxess. (Reporting by Karen Brettell; Editing by James Dalgleish)