Catalyst Paper Completes Snowflake Mill Asset Sale
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Catalyst Paper, Richmond, B.C., Canada, reports that it has completed the U.S. Court approved sale of its Snowflake, Ariz., USA, 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 $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 CEO 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 produces 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 in British Columbia, Catalyst has a combined annual production capacity of 1.5 million metric tons.
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