Catalyst Paper Sells Interest in Powell River Energy

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Catalyst Paper, Richmond, B.C., Canada, reports that it has completed the sale of its approximately 50% interest in Powell River Energy Inc. and Powell River Energy Limited Partnership to Powell River Energy Trust, a Brookfield Renewable Energy affiliate, for $33 million . Approximately $12.7 million of the net proceeds of the sale will be distributed to certain unsecured creditors of Catalyst pursuant to its plan of arrangement under the Companies' Creditors Arrangement Act of Canada. The company will offer to purchase a portion of its Floating Rate Senior Secured Notes with the balance of the net proceeds.

Catalyst Paper produces 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 metric tons.