UPDATE 2-AbitibiBowater gets court OK for DIP financing

* Gets court approval for Abitibi-Consolidated DIP

* Says DIP will support company's business continuity

* Union upset with pension payment ruling

(Adds pension ruling, All figures in U.S. dollars, unless noted)

TORONTO, May 7 (Reuters) - North America's largest newsprint maker, AbitibiBowater Inc. ABH.TO (ABWTQ.PK: Quote, Profile, Research), won Canadian court approval on Thursday for $100 million in financing to get its Abitibi-Consolidated unit through its bankruptcy reorganization.

Last month, AbitibiBowater crumpled under its overwhelming debt-load and weak demand for newsprint and lumber, forcing it to file for bankruptcy protection in Canada and the United States when some of its lenders rejected a recapitalization plan.

The order from the the Quebec Superior Court in Canada allows Abitibi-Consolidated to enter into a loan agreement with Bank of Montreal for debtor-in-possession financing, which will be guaranteed by Investissement Quebec -- the province's investment agency.

AbitibiBowater has already won court approval and entered into financing commitments with Fairfax Financial Holdings Ltd (FFH.TO: Quote, Profile, Research) and Avenue Management LLC for debtor-in-possession financing totaling about $200 million for its Bowater unit, which is subject to a Chapter 11 bankrupcty filing.

The company said the Abitibi-Consolidated DIP Agreement will support AbitibiBowater's business continuity by providing additional short-term liquidity while the company continues to develop its restructuring plan.