Catalyst Paper of Richmond, British Columbia, announced it has successfully completed its reorganization under the Companies’ Creditors Arrangement Act. The news comes nearly a month after Catalyst entered into a commitment letter with a Canadian chartered bank for a $175 million syndicated asset-based loan (ABL) facility.
As a result of the reorganization and related transactions, Catalyst reports to have reduced its debt by $390 million, eliminated $80 million of accrued interest and reduced annual interest expense and other cash costs by approximately $70 million.
“We entered the reorganization process with a clear objective to put Catalyst on stronger financial footing and we have done so,” said Kevin Clarke, President and CEO. “Many parties worked long and hard to resolve balance sheet and cash-flow issues constructively and quickly throughout the process.
“I am very proud of our employees who stayed focused throughout this challenging period. Sales kept our order book strong, operations ran well and, going forward, we intend to capitalize on the momentum generated to compete even more vigorously in the markets for our products.”
The company’s new board of directors as of September 13, 2012, is comprised of John Brecker, Giorgio Caputo, John Charles, Kevin Clarke, Todd Dillabough, Walter Jones and Leslie Lederer.
“As we emerge from creditor protection, I want to acknowledge our former board chairman Jeffrey Marshall and directors Thomas Chambers, William Dickson, Douglas Hayhurst, Alan Miller, Geoffrey Plant and Dallas Ross for their service to Catalyst Paper,” said Clarke.