RICHMOND, BC, Nov. 27, 2012 /CNW/ - Catalyst Paper announced that it has
accepted a qualified stalking horse bid from MLR Ventures, LLC (the
Stalking Horse) as part of the sales process for disposition of the
Snowflake facility and Apache Railway.
"We have received a $12.0 million Stalking Horse bid for the assets and
land associated with the Snowflake facility and the equity of Apache
Railway," said President and Chief Executive Officer Kevin J. Clarke.
"We look forward to beginning the next phase of the sale process and to
identifying a qualified buyer in the near term."
The bid by the Stalking Horse is subject to higher and better offers
obtained through the US Court-approved sale and investor solicitation
procedures. Catalyst Paper expects to receive binding bids for the
assets from qualified bidders on December 7, 2012 and expects to hold
an auction among qualified bidders on December 17, 2012 in New York
City. A hearing in the US Court is scheduled for December 19, 2012 to
consider approval of the sale.
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 statements,
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