Catalyst gets more time to woo creditors
Crofton mill owner Catalyst Paper has been granted another two week extension to persuade its creditors to agree to a debt restructuring deal.
The bondholders will now meet May 15 instead of May 2 to discuss a “plan of arrangement” for the debt-laden company. The original meeting, considered a pivotal milestone in keeping the company afloat, was set for Apr. 23.
Catalyst President and CEO Kevin Clarke said the latest extension will allow them to continue discussing the scenario with the bondholders to bring the deal to a "satisfactory conclusion."
Catalyst owes over $800 million in debt and if the restructuring plan is approved, the bondholders would own a majority of the company but allow Catalyst to maintain some kind of control over its B.C. mills.
The Supreme Court of British Columbia also agreed to extend the deadline for Catalyst under the Companies Creditors' Arrangement Act (CCAA) until June 30, from the original cut off date of Apr. 30.
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