Catalyst Paper Completes Reorganization
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Catalyst Paper, Richmond, B.C., Canada, a producer of specialty mechanical printing papers, newsprint, and pulp, this past week reported the completion of its previously announced reorganization under the Companies' Creditors Arrangement Act of Canada. As a result of the reorganization and related transactions, Catalyst reduced its debt by $390 million, eliminated $80 million of accrued interest, and reduced annual interest expense and other cash costs by approximately $70 million, Kevin J. Clarke, president and CEO, noted.
As part of the reorganization, the company has also entered into the previously announced new asset backed loan (ABL) facility and exit financing facility. Approximately $35 million was drawn under the exit facility upon implementation of the amended plan of reorganization. .
The company's new board of directors as of September 13, in addition to Clarke, is comprised of John Brecker, Giorgio Caputo, John Charles, Todd Dillabough, Walter Jones, and Leslie Lederer.
"As we emerge from creditor protection, I want to acknowledge our former board chairman Jeffrey Marshall and directors Thomas Chambers, William Dickson, Douglas Hayhurst, Alan Miller, Geoffrey Plant, and Dallas Ross for their service to Catalyst Paper," said. Clarke.
Speaking on behalf of the former board, Chairman Jeffrey Marshall commended "the dedication, contributions and unwavering support of Catalyst's employees and management team, unions, customers, suppliers, retirees, and pensioners, as well as the support of the communities where its mills and other facilities are located."
Additional information regarding the amended plan and the company is contained on the Monitor's website and in Catalyst's information circular dated March 23, 2012, also available on the SEDAR website, and Catalyst's web page.
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