Catalyst deal
A new support agreement has been reached with Catalyst Paper Company’s (CPC) principal shareholders. The recapitalization with majority shareholders who control 70 per cent of the company’s stock includes converting securities and shares toward significant debt reduction under terms of a new loan.
A deal was reached earlier this year that would have seen CPC acquired by Kejriwal Group International (KGI). That agreement was to have been entered into by October 25. With the announcement on Monday, October 31, that an alternative proposal has been agreed to, the KGI deal is unlikely to be completed. The company did state in a press release that it remains open to reaching an agreement with a purchaser such as KGI.
CPC’s stock price soared 700 per cent last May on news of the KGI takeover, then lost a third of its value when No. 9 paper machine in Powell River shut down in September. On news of the new support agreement and that the KGI deal likely won’t go through, its stock dropped to $1 per share on Tuesday, November 1.
CPC second quarter results posted in July showed a net loss of almost $27 million.
Greens nominate candidate
On Monday, October 31, the BC Green Party announced the nomination of Kim Darwin as its candidate for Powell River-Sunshine Coast in the 2017 provincial election. A businesswoman and president of the Sechelt and District Chamber of Commerce, Darwin served as the Green Party provincial council secretary from 2014 to 2016.
