Richmond, British Columbia, Canada, 17 April 2012 -- Catalyst Paper announced today that it has obtained an order from the Supreme Court of British Columbia extending its protection under the Companies’ Creditors Arrangement Act (CCAA) to 30 June 2012. This extension will provide the company with additional time to pursue restructuring alternatives, including the previously announced plan of compromise and arrangement, which is to be considered at creditors’ meetings to be held on 02 May 2012.
“We have been working with all parties to complete our exit from CCAA in the most effective manner and continue to make progress,” said Kevin J. Clarke, president and chief executive officer. “In the meantime, our production, sales, and service team is fully focused on maintaining operational commitments with the same care and attention as always.”
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 meeting ongoing obligations to employees and suppliers and ensure that normal operations continue during the restructuring process.
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, Canada, and Arizona, USA, Catalyst has a combined annual production capacity of 1.8 million metric tons. 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.