Each issue of PaperMoney is approximately 500 fact filled pages.
Logout
Click here for Pulp & Paper Radio International
Items just for you
New publication added! Advertising Arguments 2015 book
Free Downloads
Search
My Profile
Login
Management Side
Technical Side
Catalyst Paper Defers Interest Payment
Print

Richmond, British Columbia, Canada, 03 January 2012 -- Catalyst Paper Corporation in mid-December deferred a USD 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 15 December, failure to pay the interest amount would allow 2016 note holders to declare the USD 390 million principal amount and all accrued interest, due immediately.

One analyst 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 Kevin J. Clarke, president and CEO.

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



Powered by Bondware
News Publishing Software

The browser you are using is outdated!

You may not be getting all you can out of your browsing experience
and may be open to security risks!

Consider upgrading to the latest version of your browser or choose on below: