Catalyst Paper Announces Completion of Reorganization
Catalyst Paper announced that it has completed its previously announced reorganization pursuant to its Second Amended and Restated Plan of Compromise and Arrangement under the Companies’ Creditors Arrangement Act.
As a result of the reorganization and related transactions, Catalyst reduced its debt by $390 million, eliminated $80 million of accrued interest and reduced annual interest expense and other cash costs by approximately $70 million.
“We entered the reorganization process with a clear objective to put Catalyst on stronger financial footing and we have done so,” said Kevin J. Clarke, president and CEO. “Many parties worked long and hard to resolve balance sheet and cash-flow issues constructively and quickly throughout the process. I am very proud of our employees who stayed focused throughout this challenging period. Sales kept our order book strong, operations ran well and, going forward, we intend to capitalize on the momentum generated to compete even more vigorously in the markets for our products.”
As a result of the reorganization under the amended plan:
The amended plan was overwhelmingly approved at meetings of the company’s secured and unsecured creditors on June 25, 2012 and was approved by the Supreme Court of British Columbia on June 28, 2012.
As part of the reorganization, the company has also entered into the previously announced new asset-backed loan (ABL) facility and exit financing facility. Approximately US$35 million was drawn under the exit facility upon the implementation of the amended plan.
Catalyst Paper manufactures diverse specialty mechanical printing papers, newsprint and pulp.
Previously on abfjournal.com: