Catalyst Paper Receives Approval for $175 Million in DIP Financing
Catalyst Paper Corporation announced that it and certain of its subsidiaries obtained an Order from the Supreme Court of British Columbia under the Companies’ Creditors Arrangement Act (CCAA).
The Order amends and restates the Initial Order the Court granted on January 31, 2012. The Order also approves advances under the debtor-in possession (DIP) financing of up to approximately $175 million, subject to certain terms and conditions, that the lenders have agreed to provide to Catalyst during the CCAA proceedings. The Order has been recognized under Chapter 15 of title 11 of the U.S. Code. J.P. Morgan Chase is providing the DIP loan.
The Order also declares certain named suppliers of the company as “critical suppliers” and requires those suppliers to continue to supply goods and/or services to the company on terms and conditions consistent with their supply relationship with the company as of January 27, 2012. The Order provides the critical suppliers with a charge to secure amounts they extend to the company after February 6, 2012. The critical suppliers have the right to make an application to the court to vary the critical supplier order on March 11, 2012.
Catalyst also announced that the Toronto Stock Exchange (TSX) has determined to delist the company’s common shares at the close of market on March 8, 2012.
Catalyst manufactures diverse specialty printing papers, newsprint and pulp.
Previously on abfjournal.com: