Court approval of the reorganization plan comes only five months following Catalyst Paper's entry into creditor protection on January 31. A confirmation hearing under the Chapter 15 process of the U.S. Bankruptcy Court for the District of Delaware (the U.S. Court) is expected to occur the middle of this month. Approval from both courts is required before the company can complete its reorganization.
"Today's court order is a major milestone in our drive to emerge from creditor protection efficiently and quickly," said President and CEO Kevin J. Clarke. "We said from the outset that our objective was to put our company on stronger financial footing for the future and we are proceeding at a rapid pace to do just that. We're in discussion now with lenders to secure the necessary exit financing and expect to complete the reorganization process in the near term."
The Court also authorized and directed Catalyst to take all actions necessary to implement the Amended Plan and Catalyst is working towards implementation, which is subject to a number of conditions, including the company obtaining an order of the U.S. Court recognizing that the Sanction Order is in full force and effect in the U.S. and that Catalyst Paper shall have entered into agreements with respect to a new ABL Facility and, if necessary, Exit Facility, satisfactory to the Majority Initial Supporting Noteholders, in consultation with the Initial Supporting Unsecured Noteholders.
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