Catalyst Paper gets extension on creditor protection
On 31 January newsprint and magazine paper manufacturer Catalyst Paper decided to file for creditor protection. Now, an extension has been granted providing the company with additional time to pursue restructuring alternatives.
Catalyst Paper has been given more time to restructure its liabilities under the Canadian Companies’ Creditors Arrangement Act (CCAA). The Supreme Court of British Columbia has granted the company an extension on its creditor protection period until 30 June. At the close of the 2011 fiscal year, the company’s total liabilities were C$617.3m higher than its book value.
Catalyst Paper’s unsecured as well as secured creditors will make a decision on the announced plan of compromise and arrangement later than initially expected. Both creditors’ meetings have been postponed by more than a month from 23 April to 2 May 2012. The hearing before the court which will eventually decide on the plan, has also been postponed and will now take place on 7 May.
Catalyst Paper operates nine paper machines at four sites in Canada and the US and is considered one of the biggest suppliers of mechanical magazine paper in North America. The company produces almost 990,000 tpy of magazine paper, 470,000 tpy of newsprint and 335,000 tpy of market pulp.
⇒ Find this article in its entirety and any associated background information in EUWID Pulp and Paper no. 17
Our weekly newsletter's print and e-paper versions keep busy professionals up-to-date on the latest news from European pulp and paper markets.
⇒ Test EUWID Pulp and Paper free of charge and without any obligation by clicking here.