Catalyst Paper Announces Update on CCAA Plan of Arrangement
Catalyst Paper announced an update on the status of its discussions regarding a new asset-backed loan (ABL) facility and an exit financing facility. While Catalyst has not yet agreed to terms with any lender, Catalyst believes that the exit facility lender or lenders may require that the exit facility be secured by a charge on the assets of Catalyst and its subsidiaries that ranks equally with or in priority to the security to be granted to holders of the New First Lien Notes, as previously described in Catalyst’s information circular dated March 23, 2012 and as provided for in the Further Amended Plan of Arrangement scheduled to be voted on at meetings of the unsecured and secured creditors of Catalyst on June 25, 2012.
As a result, the trust indenture to be entered into in connection with the New First Lien Notes will include a provision permitting the granting of such security and addressing any related subordination arrangements in connection with an exit financing facility in a principal amount of up to $100 million and the terms of the New First Lien Notes as described in the Circular are amended accordingly. Catalyst will provide further information as discussions continue in connection with the ABL and exit financing facilities.
Catalyst manufactures diverse specialty mechanical printing papers, newsprint and pulp.
Previously on abfjournal.com: