Previous plan failed to win support from lenders, unionized workers
RICHMOND, BC: Catalyst Paper Corp. says its secured and unsecured creditors have voted more than 99% in favour of the company’s restructuring plan under the Companies Creditors Arrangement Act.
The company also said it has received confirmation of regulatory approval of its proposed modifications to its salaried pension plan to provide solvency funding relief.
“The plan which received creditor approval today puts Catalyst on a stronger financial base to compete and adapt as the marketplace for our products continues to change,” Catalyst president and chief executive Kevin Clarke said in a statement.
“We’re now turning our attention to securing our exit financing and satisfying the remaining conditions of the plan with a target timeline to emerge from creditor protection in the near term.”
An earlier plan failed to win support from enough of its lenders and from unionized workers at a mill in Crofton, BC, who rejected contract concessions.
The company was delisted from the Toronto Stock exchange in March.
Catalyst Paper has been going through a restructuring process under court protection from creditors.
Catalyst Paper manufactures diverse specialty mechanical printing papers, newsprint and pulp and sells to retailers, publishers and commercial printers in North America, Latin America, the Pacific Rim and Europe.
The company has three mills in BC and one in Arizona with a combined annual production capacity of 1.9 million tonnes.
© 2012 The Canadian Press