Displaying items by tag: catalyst paper

Catalyst Paper today announced that it has reached agreement with Pacifica Deep Sea Terminals Incorporated on the sale of its Elk Falls site in Campbell River. The $8.6 million sale of the 400-acre industrial site and adjacent properties is expected to close September 5, 2012. It completes Catalyst’s comprehensive bid review process which began earlier this year.

“We are very pleased to have attracted an experienced developer with the capacity and an industrial concept that will fully utilize the site’s infrastructure and bring new business and jobs to the region,” said Kevin J. Clarke, Catalyst President and Chief Executive Officer.

The former pulp and paper site was indefinitely curtailed in 2009 and closed permanently in 2010. Since then, equipment has been decommissioned and demolition work has been completed to prepare the site for sale and redevelopment to other industrial uses. The Elk Falls mill began operation in 1952, and at its peak, produced 784,000 tonnes of pulp, paper and kraft paper annually.

“The site is strategically located to serve a variety of marine, light manufacturing, clean energy and distribution uses,” said Pacifica Owner and Director Harold Jahn, “and we intend to transform it into a dynamic industrial park and port facility with the goal of creating 400 full time jobs in the Campbell River region over the next three years.”

Mr. Jahn is the director and owner of numerous Canadian private firms launched in a range of industries over the past 20 years. He is currently developing three industrial parks in northern Alberta.Within the new Pacifica Industrial Park, Mr. Jahn plans to base his companies that are presently developing algae based solar cells, a lithium battery manufacturing facility, ocean wave energy equipment fabrication and an electric vehicle assembly plant.

Catalyst Paper has announced that it has entered into a commitment letter with a Canadian chartered bank for a $175 million syndicated asset based loan facility (ABL Facility) maturing on the earlier of 5 years from date of closing and 90 days prior to maturity of any significant debt.

The ABL Facility is a pre-condition for Catalyst to exit from creditor protection and would provide for the refinancing of existing credit facilities to fund the operations of the Company on exit from creditor protection and for general corporate purposes thereafter. The collateral would primarily consist of all present and future working capital assets of the Company. The ABL borrowing base would be calculated on balances of eligible accounts receivable and inventory, less certain reserves. Customary fees are payable in connection with the ABL Facility. The ABL Facility is subject to the completion of a credit agreement, syndication, documentation and certain other conditions.

Catalyst also entered into a commitment letter with respect to a secured exit notes facility of up to US$80 million (Exit Facility). The Exit Facility provides Catalyst with backstop financing should additional funding be required to pay costs and expenses or manage other contingencies on exit from creditor protection.

“Having appropriate financing in place should enable a return to normal trade terms with our vendors as we exit from creditor protection and will, in turn, assure our customers of continued excellent service and product quality going forward,” said Catalyst President and Chief Executive Officer Kevin J. Clarke. “We kept high operating standards throughout this process and this gives us competitive momentum as we prepare to emerge successfully from CCAA in the near term.”

The Exit Facility will be provided by certain holders of Catalyst’s First Lien Notes and will be secured by a charge on certain assets of Catalyst and its subsidiaries ranking senior to the lien securing the $250 million of new secured notes (the Plan Notes) to be issued under the Second Amended Plan of Arrangement (the Amended Plan). Customary commitment fees for a facility of this nature are payable to the lenders in connection with the Exit Facility.

The Exit Facility of US$80 million, or a lesser amount at Catalyst’s option, or if Catalyst’s liquidity exceeds a specified amount, is available to Catalyst upon its exit from creditor protection, has a maturity date of four years from that exit and can be prepaid in whole or in part at any time for a premium initially of 3% and declining annually thereafter. The Exit Facility is subject to the completion of documentation and certain other conditions.

To provide sufficient time to complete documentation for the ABL Facility and Exit Facility and to satisfy the other conditions under the Amended Plan, Catalyst and certain noteholders have agreed to amend the Restructuring and Support Agreement dated March 11, 2012, as amended (the RSA) to extend the deadline for completion of the Amended Plan to September 14, 2012. The RSA and Amended Plan previously provided for completion within 45 days of the Canadian sanction order, which was obtained on June 28, 2012.

Further Information and Monitor Contact Information

For more information please refer to Catalyst Paper’s management proxy circular dated March 23, 2012 (the Circular) available on SEDAR (www.sedar.com), EDGAR (www.sec.gov) and Catalyst Paper’s web page (www.catalystpaper.com). Terms used in this news release that are defined in the Circular have corresponding meanings.

A copy of the Amended Plan as well as additional information concerning the Amended Plan is contained on the Monitor’s website, which is available at http://www.pwc.com/ca/en/car/catalyst-paper-corporation/index.jhtml. Creditors who have questions about the Amended Plan may contact the Monitor at PricewaterhouseCoopers Inc., 250 Howe Street, Suite 700, Vancouver, British Columbia, V6C 3S7 (Attention: Patricia Marshall), phone: 604-806-7070 or email: This email address is being protected from spambots. You need JavaScript enabled to view it..

Catalyst Paper Corporation is pleased to announce that the company has received the necessary creditor approval for its second amended plan of arrangement under the Companies Creditors Arrangement Act in Canada. Approval of more than 99 per cent of secured and unsecured creditors was received in votes cast in person and by proxy at meetings held today in Richmond, BC.

The sanction hearing under the CCAA process is scheduled to occur on June 28, 2012 in the Supreme Court of British Columbia and pending the BC Court approval, the confirmation hearing under the Chapter 15 process of the US Court in Delaware is expected to take place in mid-July.

“We have received support from a majority of stakeholders since we began the reorganization process and today’s vote of support by creditors for the second amended plan of arrangement sets out a clear path forward,” said President and Chief Executive Officer Kevin J. Clarke. “With the cooperation of employees, vendors, customers, pensioners and investors, Catalyst has been able to make progress through a very complicated situation at an unprecedented swift pace.”

“The plan which received creditor approval today puts Catalyst on a stronger financial base to compete and adapt as the marketplace for our products continues to change,” Mr. Clarke said. “We’re now turning our attention to securing our exit financing and satisfying the remaining conditions of the plan with a target timeline to emerge from creditor protection in the near term.”

In a related proceeding, Catalyst received BC Court approval to extend the period of CCAA protection to September 30, 2012.

Catalyst also received confirmation of regulatory approval by provincial government Order in Council of its proposed modifications to its salaried pension plan to provide for a special portability election option and solvency funding relief. The amendments required provincial government approval. The company estimates that it will save some $7 million annually with implementation of these modifications following a successful plan of arrangement.

Further Information and Monitor Contact Information

Details of today’s voting results on a class-by-class basis will be available at www.catalystpaper.com/restructuring.

Additional information is contained on the Monitor’s website at http://www.pwc.com/car-catalystpaper and in Catalyst Paper’s information circular dated March 23, 2012 (the Circular) available on SEDAR (www.sedar.com), EDGAR (www.sec.gov) and Catalyst Paper’s web page (www.catalystpaper.com). Terms used in this news release that are defined in the Circular have corresponding meanings.

Creditors who have questions may contact the Monitor at PricewaterhouseCoopers Inc., 250 Howe Street, Suite 700, Vancouver, British Columbia, V6C 3S7 (Attention: Patricia Marshall), phone: 604-806-7070 or email: This email address is being protected from spambots. You need JavaScript enabled to view it..

Catalyst Paper manufactures 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 four mills, located in British Columbia and Arizona, Catalyst has a combined annual production capacity of 1.8 million tonnes. The company is headquartered in Richmond, British Columbia, Canada and is ranked by Corporate Knights magazine as one of the 50 Best Corporate Citizens in Canada.

Catalyst Paper has announced that it is seeking approval of a further amended Plan of Arrangement (the Amended Plan) under the Companies’ Creditors Arrangement Act and will file tomorrow for approval from the Court to set meetings of its secured and unsecured creditors to consider the Amended Plan (the Meetings). Subject to Court approval, the Meetings are tentatively scheduled for June 25, 2012.

“We have received consent from a requisite number of our secured noteholders to move forward to a vote on the Amended Plan,” said Kevin J. Clarke, President and Chief Executive Officer. “This reflects the dedication of all parties to work toward a consensual deal that incorporates the many interests involved and that puts our company on better financial footing for the future.”

Catalyst Paper’s Board of Directors is unanimously recommending that all holders of First Lien Notes, Unsecured Notes and General Unsecured Claims vote in favour of the Amended Plan at the Meetings.

For more information please refer to Catalyst Paper’s management proxy circular dated March 23, 2012 (the Circular) available on SEDAR (www.sedar.com), EDGAR (www.sec.gov) and Catalyst Paper’s web page (www.catalystpaper.com). Terms used in this news release that are defined in the Circular have corresponding meanings.

The Amendments to the Plan of Arrangement

As described in Catalyst’s press release dated June 11, 2012, the principal change to the plan of arrangement is the compromise of certain extended health benefits plans for former salaried employees of Catalyst that were not to be compromised under the prior plan of arrangement. Other changes to the plan of arrangement are changes necessary to reflect the new timing for creditor approval of the Amended Plan.

Pursuant to the Amended Plan, all claims in connection with the elimination of the extended health benefits will be General Unsecured Claims and will receive the same treatment (other than that they will not be considered Convenience Creditors and are not entitled to file a Cash Election) as and will be entitled to vote with all other General Unsecured Claims under the Amended Plan. Catalyst has been advised that there is substantial support for the Amended Plan by the holders of the extended health benefits claims that will be compromised under the Amended Plan. In addition, certain holders of Unsecured Notes who previously voted against the plan of arrangement or did not vote on the plan of arrangement have indicated that they will support the Amended Plan.

Also as described in Catalyst’s June 11, 2012 press release, Catalyst has proposed modifications to its salaried pension plan to provide for a special portability election option and solvency funding relief which require provincial government approval. The Minister of Finance has confirmed that he is prepared to submit the proposal to Cabinet for its consideration with a recommendation in favour. The implementation of the Amended Plan is conditional on obtaining regulatory approval to the above modification. The company estimates that it would save approximately $7 million annually if these modifications were implemented following a successful plan of arrangement.

A copy of the Amended Plan is available on the Monitor’s website at http://www.pwc.com/ca/en/car/catalyst-paper-corporation/index.jhtml.

Catalyst Paper Corporation announced that the company did not receive the necessary creditor approval for its amended plan of arrangement under the Companies’ Creditors Arrangement Act. Approval of not less than 66 2/3% of the principal amount of each creditor class voting on the plan is required. Although 99.5% of the principal amount of the secured creditor class voted in favour of the plan, only 64% of the principal amount of the unsecured creditor class voted in favour of the plan at meetings held today in Richmond, BC. Details of the voting results including votes on a class-by-class basis are available at www.catalystpaper.com/restructuring.

Since the amended plan of arrangement was not approved at the meetings, Catalyst Paper is required to commence a sale transaction in accordance with certain court-approved sale and investor solicitation procedures (SISP) as described in the Management Proxy Circular delivered to Catalyst Paper’s creditors in advance of the meetings.

“Today's creditors' vote makes it clear for stakeholders that our path to emerge from protection will be through a sales process initiated by a stalking horse bid from secured noteholders. Our objective remains unchanged and that's to put our company on better financial footing to enable us to compete vigorously and to adapt as necessary to the continuing changes in the markets for our products,” said President and Chief Executive Officer Kevin J. Clarke. “Stakeholders can be assured that as milestones in the sales process are met, issues resolved and decisions reached, we will continue to provide timely updates on developments and progress.”

The company’s debtor-in possession (DIP) financing continues to be available to the company and, combined with the company’s operating revenue, is expected to continue to provide sufficient liquidity to meet ongoing obligations to employees and suppliers and ensure that normal operations continue during the sale process.

The SISP outlines the procedures and timelines for soliciting bids to purchase all or substantially all of the assets of Catalyst Paper or to make an investment in the business and operations of Catalyst Paper. The SISP also contemplates that Catalyst Paper will enter into a stalking horse purchase agreement (the Stalking Horse Purchase Agreement) with holders of Catalyst Paper’s First Lien Notes for the purchase of all or substantially all of the company’s assets on a going concern basis. In the event that Catalyst Paper does not receive or accept a qualified bid, pursuant to the SISP the company must terminate the SISP and within three business days of such termination, must file an application with the court seeking approval of a sale transaction under the Stalking Horse Purchase Agreement, which agreement has been finalized and approved by the court.

The SISP will be implemented as follows:

(a) an initial offering summary and confidentiality agreement will be distributed to known potential bidders within two days;

(b) potential bidders will submit certain information and an executed confidentiality agreement within 14 days (the Potential Bidder Deadline);

(c) the determination of which potential bidders are qualified bidders will occur within five days after such bidders have delivered their materials;

(d) qualified bidders will submit a non-binding indication of interest within 35 days following the Potential Bidder Deadline (the Phase 1 Bid Deadline);

(e) the non-binding indication of interest will be assessed within five days of the Phase 1 Bid Deadline;

(f) provided the non-binding indication of interest has been determined to likely be consummated, the bidder will submit a purchase bid or investment bid no later than 21 days from the Phase 1 Bid Deadline (the Phase 2 Bid Deadline);

(g) the purchase bid or investment bid will be assessed within the 5 days following the Phase 2 Bid Deadline; and

(h) in the event that there is more than one acceptable purchase bid or investment bid, an auction will be conducted within three days of the Phase 2 Bid Deadline.

Further Information and Monitor Contact Information

Additional information concerning the restructuring is contained on the Monitor’s website, which is available at http://www.pwc.com/ca/en/car/catalyst-paper-corporation/index.jhtml.

Catalyst Paper has announced that meetings of its secured and unsecured creditors to consider the plan of arrangement under the Companies’ Creditors Arrangement Act have been changed from April 23, 2012 to May 2, 2012.

The rescheduled meetings will be held at the same location (Delta Vancouver Airport Hotel, 3500 Cessna Drive, Richmond, BC) at 10:00 am for unsecured creditors and 11:00 am for the First Lien Noteholders.

The court date to sanction and approve the plan of arrangement has also been rescheduled from April 25, 2012 to May 7, 2012.

The new dates were set to accommodate court scheduling issues with the original dates. The revised schedule will also provide court Monitor, PricewaterhouseCoopers Inc. and Catalyst additional time to complete the accounting review and verification requirements associated with the creditor claims process. Claims must still be filed with the Monitor by 5 p.m. April 18, 2012.

Additional information concerning the plan of arrangement and the creditor meetings is contained in the Catalyst Paper’s Notice of Meetings and Management Proxy Circular dated March 23, 2012 (the Circular) filed on www.sedar.com.

Catalyst Paper manufactures 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 four mills, located in British Columbia and Arizona, Catalyst has a combined annual production capacity of 1.8 million tonnes. The company is headquartered in Richmond, British Columbia, Canada and is ranked by Corporate Knights magazine as one of the 50 Best Corporate Citizens in Canada.

Catalyst Paper Corporation in mid-December deferred a US$21-million interest payment and announced it is reviewing alternatives to address its capital structure. Debt reduction has been identified as a priority and discussions are ongoing with certain holders of its 2016 Notes and 2014 Notes.

The company has $840 million of debt. It has 30 days to pay the interest before triggering a default.

According to an article in the Globe and Mail on Dec. 15, failure to pay the interest amount would allow 2016 note holders to declare the $390-million (U.S.) principal amount and all accrued interest, due immediately.

One analyst quoted in the Globe story noted that the deferred payment is likely a tactic to pressure note holders to come to an agreement on restructuring outside of bankruptcy protection.

Catalyst Paper said operations are expected to continue as usual with obligations to customers, suppliers and employees being met in the ordinary course.

"We advised several months ago that we were actively pursuing a restructuring of our balance sheet. This is a very complex process and while we cannot prejudge outcomes, we are firmly committed to achieving a solution that puts Catalyst on stronger financial footing for the future," said president and CEO Kevin J. Clarke.

Catalyst Paper manufactures diverse specialty printing papers, newsprint, and pulp. It has four mills located in British Columbia and Arizona.

Both paper machines at Catalyst Paper's recycled newsprint mill in Arizona resumed production April 21 after a fire in the storage yard at its Snowflake mill destroyed approximately 11,000 tonnes of recovered old newspapers (ONP).

The fire on April 18 did not have any significant impact on any of the mill's production equipment. Quick and professional actions from the mill staff and workforce, coupled with the response from numerous fire companies in the Snowflake area, prevented a more serious outcome. There were no serious injuries reported, and an investigation into the cause of the fire is underway.

The combined impact of the inventory loss, equipment damage, and fighting the fire is expected to be less than the insurance deductible of $5 million.

With 12 hours of de-inked pulp inventory on hand, customer orders are being met with limited disruption. In-transit and on-site truck inventories of ONP are more than adequate for the next month of production.

Catalyst Paper has advised that a fire in the storage yard at its Snowflake Mill in northeast Arizona has shut down production and destroyed approximately 14,000 tonnes of recovered waste paper.

The fire broke out at approximately noon Monday in the waste paper storage area. The mill’s emergency team responded immediately and local fire departments from Snowflake, Taylor, Heber, Pinetop, Lakeside and Show Low were called in to help contain the blaze.

Fire breaks were put into place to limit the spread of the damage as high winds challenged response team efforts. As the winds eased through Monday evening, responders were able to make better progress in extinguishing the fire.

All appropriate authorities were notified and the region’s public information officer has been assisting in coordination of local advisories.  There were no serious injuries reported.

Details on the cause of the incident are not known at this time and the mill will remain down until the full extent of damage to its waste paper feed system is known. Paper production is, however, expected to resume later this week.

The Snowflake mill has annual production capacity of 337,000 tonnes of recycled newsprint and uncoated specialty papers and is chain of custody certified to the Forest Stewardship Council standard. The operation supports recovery and domestic recycling of more than 480,000 tons of waste paper annually and is the second largest private sector employer in northeast Arizona.

Catalyst Paper manufactures diverse specialty printing papers, newsprint and pulp. Its customers include retailers, publishers and commercial printers in North America, Latin America, the Pacific Rim and Europe.  With four mills located in British Columbia and Arizona, Catalyst has a combined annual production capacity of 1.9 million tonnes.  The company is headquartered in Richmond, British Columbia, Canada and its common shares trade on the Toronto Stock Exchange under the symbol CTL.  Catalyst is listed on the Jantzi Social Index® and is also ranked by Corporate Knights as one of the 50 Best Corporate Citizens in Canada.