Catalyst Paper Corporation received approval for its reorganization plan from the Supreme Court of British Columbia. The company’s second amended plan under the Companies’ Creditors Arrangement Act (the Amended Plan) received 99% support from creditors.

Court approval of the reorganization plan comes only five months following Catalyst Paper’s entry into creditor protection on January 31, 2012. A confirmation hearing under the Chapter 15 process of the U.S. Bankruptcy Court for the District of Delaware is expected to occur in mid-July. Approval from both courts is required before the company can complete its reorganization.

“Today’s court order is a major milestone in our drive to emerge from creditor protection efficiently and quickly,” said president and CEO Kevin J. Clarke. “We said from the outset that our objective was to put our company on stronger financial footing for the future and we are proceeding at a rapid pace to do just that. We’re in discussion now with lenders to secure the necessary exit financing and expect to complete the reorganization process in the near term.”

The court also authorized and directed Catalyst to take all actions necessary to implement the Amended Plan and Catalyst is working towards implementation. Implementation of the Amended Plan is subject to a number of conditions, including the company obtaining an order of the U.S. Court recognizing that the Sanction Order is in full force and effect in the United States and that Catalyst Paper shall have entered into agreements with respect to a new ABL facility and, if necessary, exit facility, satisfactory to the Majority Initial Supporting Noteholders, in consultation with the Initial Supporting Unsecured Noteholders.

Blake, Cassels & Graydon LLP and Skadden, Arps, Slate, Meagher & Flom LLP are acting as the company’s legal counsel and Perella Weinberg Partners is acting as the company’s financial advisor with respect to the reorganization. Akin Gump Strauss Hauer & Feld LLP and Fraser Milner Casgrain LLP are acting as counsel to certain of the holders of Senior Secured Notes and Moelis & Company is acting as financial advisor to such noteholders with respect to the reorganization. Goodmans LLP and Kramer Levin LLP are acting as counsel to certain of the holders of Senior Secured Notes and Senior Notes and Houlihan Lokey Capital, Inc. is acting as financial advisor to such noteholders with respect to the reorganization.

Catalyst Paper manufactures diverse specialty mechanical printing papers, newsprint and pulp.

Previously on abfjournal.com:

Creditors Approve Catalyst Paper Restructuring Plan, Tuesday, June 26, 2012