RICHMOND, BC, Jan. 30, 2013 /CNW/ - Catalyst Paper (TSX: CYT) announced
today that it has completed the US Court approved sale of the Snowflake
assets and shares of Apache Railway. The Hackman Capital-led buyer
group purchased the assets of the closed Snowflake facility and the
shares of Apache Railway for US$13,460,000 and other non-monetary
consideration. The transaction received local support from the Town of
Snowflake and other interests, based on the buying group's intention to
continue to operate the Apache Railway as a going concern.
"The successful completion of this transaction will assist Catalyst in
reducing its interest obligations and improve overall liquidity," said
President and Chief Executive Officer Kevin J. Clarke. "With
challenging markets and currency impacts to contend with, we are
maintaining tight control of spending on all fronts and making the sale
of all remaining non-core assets a priority."
Aided by the sale of the Snowflake assets and the sale of inventories
and realization of accounts receivable associated with the Snowflake
closure, Catalyst has been able to repay substantially all of its cash
drawings under its ABL facility leaving only customary letters of
credit and a minimal cash drawing outstanding under the facility at
this point in time. Drawings under the ABL facility fluctuate with
Catalyst's working capital needs from time to time.
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 three mills, located in British Columbia, Catalyst
has a combined annual production capacity of 1.5 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 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 statement,
including those risks and uncertainties identified 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 third quarter of 2012, 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