Richmond, British Columbia, Canada, 08 February 2012 -- Catalyst Paper Corporation (TSX:CTL) announced today that the company and certain of its subsidiaries obtained a further order from the Supreme Court of British Columbia under the Companies’ Creditors Arrangement Act (CCAA).
The order amends and restates the Initial Order the Court granted 31 January 2012. The order also approves advances under the debtor-in possession (DIP) financing of up to approximately CAD 175 million, subject to certain terms and conditions, that the lenders have agreed to provide to Catalyst during the CCAA proceedings. The order has been recognized under chapter 15 of title 11 of the U.S. Code.
The order also declares certain named suppliers of the company as “critical suppliers” and requires those suppliers to continue to supply goods and/or services to the company on terms and conditions consistent with their supply relationship with the company as of 27 January 2012. The order provides the critical suppliers with a charge to secure amounts they extend to the company after 06 February 2012. The critical suppliers have the right to make an application to the court to vary the critical supplier order on 11 March 2012.
Catalyst also announced that the Toronto Stock Exchange (TSX) has determined to delist the company’s common shares at the close of market on 08 March 2012. The company no longer meets the TSX continued listing requirements as a result of its financial condition and the commencement of CCAA proceedings. Trading in the company’s common shares on the TSX will remain suspended.
Catalyst 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 metric tons. The company is headquartered in Richmond, British Columbia, Canada. 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.