Catalyst gains time
Catalyst Paper Corporation has received more time to prepare for key meetings of its bondholders as well as for ongoing creditor protection.
The company has obtained an order from the Supreme Court of British Columbia extending its protection under the Companies’ Creditors’ Arrangement Act (CCAA) to June 30, 2012. The extension will give the company additional time to pursue restructuring alternatives including the plan of compromise and arrangement, which is to be considered at creditors’ meetings.
Those meetings, of its secured and unsecured creditors, have been changed from May 2 to May 15.
According to a company statement, the new date was set to allow additional time for Catalyst to consider feedback from its trade and other creditors and to advance discussions in order to gain further support for the restructuring.
“We are taking the additional time to work through a very complicated process and to ensure the many interests involved are fully considered,” said Kevin Clarke, president and CEO, in the statement. “We are continuing our efforts to bring a consensual deal to a satisfactory conclusion.”
The court date to approve the restructuring plan has also been rescheduled from May 7 to May 18.
Catalyst has been under CCAA creditor protection since late January. According to a company statement, its debtor-in-possession financing continues to be available and, combined with operating revenue, is expected to continue to provide sufficient liquidity to meet ongoing obligations to employees and suppliers and ensure that normal operations continue during the restructuring process.
