Catalyst Paper Corporation announced on 31 January that to facilitate an orderly restructuring of its business and operations, the board of directors decided to file for creditor protection under the Canadian Companies' Creditors Arrangement Act (CCAA).
The operations of Catalyst and its subsidiaries are intended to continue as usual and obligations to employees and suppliers during the restructuring process are expected to be met normally. Catalyst management will remain responsible for the day-to-day operations of the company.
Previously, the company had announced a recapitalization transaction under the Canada Business Corporations Act (CBCA) for which the conditions were not met, therefore the company decided to commence proceedings under the CCAA.
Catalyst manufactures newsprint and magazine papers as well as NBSK pulp with a combined annual capacity of 1.9 million t.