Richmond, BC - Catalyst Paper today announced an update on
the status of its discussions regarding a new asset backed
loan (ABL) facility and an exit financing facility. While
Catalyst has not yet agreed to terms with any lender,
Catalyst believes that the exit facility lender or lenders
may require that the exit facility be secured by a charge
on the assets of Catalyst and its subsidiaries that ranks
equally with or in priority to the security to be granted
to holders of the New First Lien Notes, as previously
described in Catalyst's information circular dated March
23, 2012 (the Circular) and as provided for in the Further
Amended Plan of Arrangement scheduled to be voted on at
meetings of the unsecured and secured creditors of Catalyst
on June 25, 2012. As a result, the trust indenture to
be entered into in connection with the New First Lien Notes
will include a provision permitting the granting of such
security and addressing any related subordination
arrangements in connection with an exit financing facility
in a principal amount of up to $100 million and the terms
of the New First Lien Notes as described in the Circular
are amended accordingly. Catalyst will provide
further information as discussions continue in connection
with the ABL and exit financing facilities.
Further Information and Monitor Contact Information
Additional information regarding the plan of arrangement
and the company is contained on the Monitor's website,
which is available at
http://www.pwc.com/ca/en/car/catalyst-paper-corporation/index.jhtml
and in Catalyst's information circular dated March 23, 2012
(the Circular) available on SEDAR (www.sedar.com), EDGAR (www.sec.gov) and Catalyst's web
page (www.catalystpaper.com).
Terms used in this news release that are defined in the
Circular have corresponding meanings.
Creditors who have questions may contact the Monitor at
PricewaterhouseCoopers Inc., 250 Howe Street, Suite 700,
Vancouver, British Columbia, V6C 3S7 (Attention: Patricia
Marshall), phone: 604-806-7070 or email: catalystclaims@ca.pwc.com.
General Information
Catalyst manufactures diverse specialty mechanical printing
papers, newsprint and pulp. Its customers include
retailers, publishers and commercial printers in North
America, Latin America, the Pacific Rim and Europe. With
four mills, located in British Columbia and Arizona,
Catalyst has a combined annual production capacity of 1.8
million tonnes. The company is headquartered in Richmond,
British Columbia, Canada and is ranked by Corporate Knights
magazine as one of the 50 Best Corporate Citizens in
Canada.
Forward-Looking Statements
Certain matters set forth in this news release,
including statements with respect to the ABL Facility, Exit
Facility and the implementation of the plan of arrangement
are forward looking. These forward-looking statements
reflect management's current views and are based on certain
assumptions including assumptions as to future operating
conditions and courses of action, economic conditions and
other factors management believes are appropriate. Such
forward looking statements are subject to risks and
uncertainties that may cause actual results to differ
materially from those contained in these statements,
including failure to obtain court approval and those risks
and uncertainties identified under the heading "Risk
Factors" in the Circular and under the heading "Risks and
Uncertainties" in Catalyst's management's discussion and
analysis contained in Catalyst's annual report for the year
ended December 31, 2011 and report for the first quarter of
2012, all of which are available at www.sedar.com.
For more information contact:
Investors:
Brian Baarda
Vice President, Finance & CFO
604-247-4710
Alistair MacCallum
Vice President, Treasurer & Corporate Controller
604-247-4037
Media:
Lyn Brown
Vice President, Marketing & Corporate Responsibility
604-247-4713
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