By Cindy Macdonald
The four largest shareholders of Catalyst Paper have extended the deadline for Kejriwal Group International to sign a definitive agreement to acquire the B.C. papermaker. An amendment to the previously announced support agreement extends the deadline for a deal to October 25, 2016, but maintains December 15, 2016 as the deadline to complete a transaction.
In addition, Catalyst Paper has entered into a confidentiality and non-disclosure agreement with KGI, which allows KGI to initiate its due diligence process in connection with the proposed transaction.
The principal securityholders hold or control approximately 79% of Catalyst Paper’s outstanding common shares. These include accounts or funds managed by Mudrick Capital Management, L.P., Cyrus Capital Partners, LP, Oaktree Capital Management, L.P. and Stonehill Capital Management LLC.
A statement from Catalyst Paper says the board of directors will continue to review and evaluate the proposed transaction and the process contemplated by the support agreement with the assistance of legal and financial advisors.
Catalyst Paper manufactures diverse printing papers such as coated freesheet, coated one side (C1S), coated and uncoated groundwood, newsprint, directory, as well as market pulp.