Catalyst Paper Co. (Richmond, Canada) announced his week that the holders of its common shares (the "shareholders") and PIK Toggle Senior Secured Notes due 2017 (the "noteholders") have approved the statutory plan of arrangement (the "arrangement") relating to the company’s proposed recapitalization (the "recapitalization") and privatization (the "privatization transaction"), all as further described in the management proxy circular of the company dated Dec. 14, 2016.

At the special meeting of shareholders held on Jan. 17, 2017, the resolution authorizing the recapitalization was approved by 99.1% of the votes cast by shareholders present in person or represented by proxy, and (94.6% of the votes cast by shareholders present in person or representing by proxy, excluding votes which may not be included in determining minority approval pursuant to the rules of the Toronto Stock Exchange and Multilateral Instrument 61-101 – Protection of Minority Securityholders in Special Transactions (MI 61-101).

In addition, the resolution authorizing the privatization transaction was approved by (i) 98.6% of the votes cast by shareholders present in person or represented by proxy, and (ii) 91.7% of the votes cast by shareholders present in person or representing by proxy, excluding votes which may not be included in determining minority approval pursuant to MI 61-101.

At the special meeting of noteholders, the resolution authorizing the recapitalization was approved by 100% of the votes cast by noteholders.

The completion of the arrangement remains subject to receipt of the final order by the Supreme Court of British Columbia, the satisfaction or waiver of other customary closing conditions and, in the case of the privatization transaction, the receipt of discretionary exemptive orders from the Canadian securities regulatory authorities allowing Catalyst to cease to be a "reporting issuer" under applicable Canadian securities laws. Completion of the arrangement is expected to occur in the latter part of January.