Finally, creditors vote on future of Catalyst Paper?
A vote perceived as crucial to the survival of the Crofton Pulp and Paper Mill is set to take place Wednesday morning in Vancouver after it was postponed five times in the past four months.
Those holding the purse strings on Catalyst Paper, which has been under the court-protected Companies’ Creditor Arrangement Act (CCAA) since January 31, are being asked to approve a debt restructuring plan that would allow the company to maintain control of its mill operations in B.C.
Catalyst’s vice president of Marketing and Corporate Responsibility, Lyn Brown, is optimistic the vote will turn out in their favour.
“I’m confident that we have done a lot of work to adjust the plan of arrangement,” she told SunFM News Tuesday.
“I’m confident that we will continue to adjust as necessary and the creditors have the opportunity to vote on the amended plan—their decision will set out the path for our exit from creditor protection.”
Catalyst has been given several extensions to come up with a plan to deal with its $840 million debt. The amended plan of arrangement includes the company offering 100 per cent of its new common shares to its secured noteholders in exchange for $435 million less debt.
The creditor meetings and votes are scheduled for 10 a.m. and 11 a.m. May 23 in Vancouver. Before the amended plan of arrangment was announced last week, Catalyst CEO and President Kevin Clarke said he could not guarantee the vote would actually take place as scheduled.
Some 700 people work at the Crofton Pulp and Paper Mill, which for several years has been the biggest single source of tax revenue for the district of North Cowichan.
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