Catalyst said it believes the agreement and restructuring transactions that will form the basis of its plan of arrangement are the best alternative for the company and its noteholders, shareholders, and other stakeholders. The proposed plan of arrangement, it added, will address the company's current debt level, preserve jobs, and preserve Catalyst's business as a going concern for the benefit of all stakeholders and the communities in which Catalyst operates.
"The proposed plan of arrangement provides the opportunity to reposition Catalyst Paper for the future at this very challenging time for the entire paper and pulp industry," said Kevin J. Clarke, president and CEO. "There are many interested parties involved and we are continuing to work hard to address the requirements that will enable us to finalize this transaction in a timely and effective manner."
According to the agreement, if a plan of arrangement is not approved by the requisite voting threshold, the company will commence a sale transaction in accordance with certain agreed sale and investor solicitation procedures. Also, the agreement can be terminated in certain circumstances, including if a new labor agreement with all union locals at the company's Canadian mills has not been ratified.
More information and agreement details are available online.
With four mills, located in British Columbia, Canada, and Arizona, USA, Catalyst produces some 1.8 million metric tpy of specialty mechanical printing papers, newsprint, and pulp.
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