RICHMOND, BC, June 25, 2012 /CNW/ - Catalyst Paper Corporation is
pleased to announce that the company has received the necessary
creditor approval for its second amended plan of arrangement under the Companies Creditors Arrangement Act in Canada. Approval of more than 99 per cent of secured and unsecured
creditors was received in votes cast in person and by proxy at meetings
held today in Richmond, BC.
The sanction hearing under the CCAA process is scheduled to occur on
June 28, 2012 in the Supreme Court of British Columbia and pending the
BC Court approval, the confirmation hearing under the Chapter 15
process of the US Court in Delaware is expected to take place in
"We have received support from a majority of stakeholders since we began
the reorganization process and today's vote of support by creditors for
the second amended plan of arrangement sets out a clear path forward,"
said President and Chief Executive Officer Kevin J. Clarke. "With the
cooperation of employees, vendors, customers, pensioners and investors,
Catalyst has been able to make progress through a very complicated
situation at an unprecedented swift pace."
"The plan which received creditor approval today puts Catalyst on a
stronger financial base to compete and adapt as the marketplace for our
products continues to change," Mr. Clarke said. "We're now turning our
attention to securing our exit financing and satisfying the remaining
conditions of the plan with a target timeline to emerge from creditor
protection in the near term."
In a related proceeding, Catalyst received BC Court approval to extend
the period of CCAA protection to September 30, 2012.
Catalyst also received confirmation of regulatory approval by provincial
government Order in Council of its proposed modifications to its
salaried pension plan to provide for a special portability election
option and solvency funding relief. The amendments required provincial
government approval. The company estimates that it will save some $7
million annually with implementation of these modifications following a
successful plan of arrangement.
Further Information and Monitor Contact Information
Details of today's voting results on a class-by-class basis will be
available at www.catalystpaper.com/restructuring.
Additional information is contained on the Monitor's website at http://www.pwc.com/car-catalystpaper and in Catalyst Paper's information circular dated March 23, 2012 (the
Circular) available on SEDAR (www.sedar.com), EDGAR (www.sec.gov) and Catalyst Paper's web page (www.catalystpaper.com). Terms used in this news release that are defined in the Circular have
Creditors who have questions may contact the Monitor at
PricewaterhouseCoopers Inc., 250 Howe Street, Suite 700, Vancouver,
British Columbia, V6C 3S7 (Attention: Patricia Marshall), phone:
604-806-7070 or email: email@example.com.
Catalyst Paper manufactures diverse specialty mechanical printing
papers, newsprint and pulp. Its customers include retailers, publishers
and commercial printers in North America, Latin America, the Pacific
Rim and Europe. With four mills, located in British Columbia and
Arizona, Catalyst has a combined annual production capacity of 1.8
million tonnes. The company is headquartered in Richmond, British
Columbia, Canada and is ranked by Corporate Knights magazine as one of
the 50 Best Corporate Citizens in Canada.
Certain matters set forth in this news release, including statements
with respect to implementation of the Amended Plan and the benefits to
the company of the Amended Plan, are forward looking. These
forward-looking statements reflect management's current views and are
based on certain assumptions including assumptions as to future
operating conditions and courses of action, economic conditions and
other factors management believes are appropriate. Such forward looking
statements are subject to risks and uncertainties that may cause actual
results to differ materially from those contained in these statements,
including failure to obtain court approval, failure to obtain the
requisite approvals of holders of the First Lien Notes and Unsecured
Notes and other creditors, and those risks and uncertainties identified
under the heading "Risk Factors" in the Circular and under the heading
"Risks and Uncertainties" in Catalyst's management's discussion and
analysis contained in Catalyst's annual report for the year ended
December 31, 2011 and report for the first quarter of 2012, all of
which are available at www.sedar.com.
SOURCE Catalyst Paper Corporation
For further information:
Vice President, Finance & CFO
Vice President, Treasurer & Corporate Controller
Vice President, Marketing & Corporate Responsibility