Catalyst Paper's Restructuring Plan Nixed

Richmond, British Columbia, Canada, 23 May 2012 -- 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 favor of the plan, only 64% of the principal amount of the unsecured creditor class voted in favor of the plan at meetings held today in Richmond, British Columbia. Details of the voting results, including votes on a class-by-class basis, are available at www.catalystpaper.com/restructuring.