Catalyst Paper has proposed a restructuring plan that it says will address the company’s debt, preserve jobs, and keep its mills operating.
Catalyst Paper has proposed a restructuring plan that it says will address the company’s debt, preserve jobs, and keep its mills operating.
According to a story in the Vancouver Sun, the plan has the support of 42% of the company senior secured noteholders and 14% of the unsecured noteholders. The agreement requires two-thirds support.
Catalyst said in a release that if the plan does not receive the required support, the company “will commence a sale transaction.”
Catalyst has been under creditor protection since late January, when it failed to garner support for a restructuring plan similar to the current proposed plan of arrangement.
The current plan, like the earlier one, is subject to termination if all union locals at the company’s Canadian operations do not ratify new labour agreements. The Crofton local of the Pulp Paper and Woodworkers of Canada has not signed a new contract.
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