A former Powell River mill manager has returned to his old job.
Catalyst Paper Corporation has appointed Brian Johnston general manager of the Powell River division.
Johnston lost no time handing over the company’s 2012 taxes to City of Powell River Mayor Dave Formosa.
Johnston presented a cheque for $2,927,191 on July 3. Of that, $2,295,789 is the city’s portion for the paper mill in Powell River.
Catalyst entered creditor protection in January of this year under the Companies’ Creditors Arrangement Act (CCAA). On June 28, the Supreme Court of British Columbia approved a financial restructuring plan, which reduces its debt by 60 per cent, from $650 million to $250 million. Creditors voted 99 per cent in favour of the plan on June 25. An initial version of the plan was turned down by a narrow margin of creditors in May.
“We’re very happy to know that the CCAA plan of arrangement has been approved and passed,” Formosa said. “We know that we’re now in a position to look forward to a number of years of these cheques, now that Catalyst has a good, solid balance sheet and a solid customer base that stuck with them through these hard times.”
Johnston said he was happy to be back in Powell River. “It’s an auspicious opportunity, to be able to present this cheque,” he said. “As it says, it’s our 100th year. We’re going to have a celebration, recognizing all of the accomplishments of the people who live and work in Powell River and have done so for generations.”
Johnston was mill manager in Powell River from 2002 to 2005, when he was appointed vice-president of technical services. His appointment back to Powell River sends a signal that, as Johnston said, “Powell matters. Powell matters to the company and, frankly, it matters to me. I saw my first paper machine here in Powell River 31 years ago and I’m happy to be back.”
Johnston said he worked for MacMillan Bloedel Ltd. for a summer in 1981.
In a letter accompanying the cheque, Johnston noted that the company was proud to be making the 2012 annual property tax payment in its 100th year of commitment to Powell River.
“The actions taken to establish a constructive business climate have helped preserve the viability of our Powell River paper mill as we navigate the creditor protection process,” Johnston wrote in the letter. “With the support of employees, unions, pensioners, vendors, investors and customers, we are now preparing to emerge from this process later this fall with a stronger financial base and the momentum to keep pace in the highly competitive global markets for the products made at our mills.”
