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Catalyst Paper gets initial CCAA order; JPMorgan to provide DIP loan
By Caroline Salls
Pittsburgh, Feb. 1 - Catalyst Paper Corp. obtained an initial Companies' Creditors Arrangement Act order from the Supreme Court of British Columbia and a commitment for debtor-in-possession financing from JPMorgan, according to a news release.
The company said the terms of its restructuring plan have not yet been determined.
According to the release, the DIP financing is expected to provide Catalyst with up to $175 million of available capital during the CCAA proceedings.
Advances under the DIP loan will be available after court approval, which the company said it expects to obtain on Feb. 3.
Catalyst said the initial CCAA order gives it access to an amount it believes is enough to fund operations until the Feb. 3 hearing.
The company said its operating revenue, combined with the proposed DIP financing, are expected to provide sufficient liquidity to meet ongoing obligations to employees and suppliers and ensure that normal operations continue during the restructuring process.
Catalyst said it plans to apply for recognition of the interim order under its Chapter 15 bankruptcy case.
The company said the CCAA filing applies to Catalyst, Catalyst Paper General Partnership, Catalyst Pulp Operations Ltd., Catalyst Pulp Sales Inc., Pacifica Poplars Ltd., Catalyst Pulp and Paper Sales Inc., Elk Falls Pulp and Paper Ltd., Catalyst Paper Energy Holdings Inc., 0606890 B.C. Ltd., Catalyst Paper Recycling Inc., Catalyst Paper (Snowflake) Inc., Catalyst Paper Holdings Inc., Pacifica Papers U.S. Inc., Pacifica Poplars Inc., Pacifica Papers Sales Inc., Catalyst Paper (USA) Inc. and the Apache Railway Co.
Catalyst, a Vancouver, B.C.-based paper and pulp company, filed for bankruptcy on Jan. 17 in the U.S. Bankruptcy Court for the District of Delaware to gain recognition of its Canadian proceedings. Its Chapter 15 case number is 12-10221.
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