Richmond, BC, CANADA, Jun 28, 2012 - Catalyst Paper Corporation received approval today for its reorganization plan from the Supreme Court of British Columbia. The company’s second amended plan under the Companies’ Creditors Arrangement Act (the Amended Plan) received 99 per cent support from creditors at meetings held earlier this week.
Court approval of the reorganization plan comes only five months following Catalyst Paper’s entry into creditor protection on January 31, 2012. A confirmation hearing under the Chapter 15 process of the United States Bankruptcy Court for the District of Delaware (the US Court) is expected to occur in mid-July. Approval from both courts is required before the company can complete its reorganization.
“Today’s court order is a major milestone in our drive to emerge from creditor protection efficiently and quickly,” said President and Chief Executive Officer Kevin J. Clarke. “We said from the outset that our objective was to put our company on stronger financial footing for the future and we are proceeding at a rapid pace to do just that. We’re in discussion now with lenders to secure the necessary exit financing and expect to complete the reorganization process in the near term.”
The Court also authorized and directed Catalyst to take all actions necessary to implement the Amended Plan and Catalyst is working towards implementation. Implementation of the Amended Plan is subject to a number of conditions, including the company obtaining an order of the US Court recognizing that the Sanction Order is in full force and effect in the United States and that Catalyst Paper shall have entered into agreements with respect to a new ABL Facility and, if necessary, Exit Facility, satisfactory to the Majority Initial Supporting Noteholders, in consultation with the Initial Supporting Unsecured Noteholders. The conditions are set out in the Amended Plan and in the Circular. Please see below for information as to how to obtain a copy of these documents. Under the Amended Plan, each of the conditions must be satisfied within 45 days unless such condition is waived or the date for fulfillment is extended in accordance with the provisions of the Amended Plan.
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