Catalyst seeks court approval for a second vote
Crofton Pulp and Paper Mill owner Catalyst Paper is persevering in its efforts to manage $840 million worth of debt and keep the company in one piece.
According to a June 14 press release, the company will ask the courts to accept an amended financial restructuring plan under the Companies' Creditors Arrangement Act (CCAA). It will also ask for another set of meetings with its creditors to consider that amended plan.
The new strategy to cut costs includes changes to extended health benefits and pension plans for former salaried employees, estimated to save the company $7 million a year.
Catalyst CEO and President Kevin Clarke said a requisite number of secured noteholders are showing support to "move forward to a vote on the Amended Plan."
Noteholders voted down the last debt restructuring plan May 23 by a slim margin, forcing Catalyst to go up for sale.
If the courts approve the new request, a meeting and vote of noteholders would be scheduled for June 25.
Catalyst has been under creditor protection since January.
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