Catalyst To Sell Assets, As Restructure Plan Fails
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Catalyst Paper Corp, a Canadian paper and pulp producer under creditor protection, will attempt to sell its assets after a proposed restructuring plan failed to win the backing of its unsecured lenders, Reuters reported. The plan won overwhelming support from its secured lenders, but fell slightly short of the two-thirds backing it needed from unsecured lenders, the Richmond, British Columbia-based company said. The company was granted creditor protection in January, as it attempted to restructure its business. It is one of many paper producers that has recently succumbed to higher costs and waning demand, as banks, utility companies and media companies focus more closely on online services and cut paper use. Catalyst, which had secured a roughly $175 million debtor-in-possession financing package from JPMorgan, said it still has access to the loan, which along with its operating revenues will provide enough liquidity for it to meet its obligations. Read more.