Richmond-based Catalyst Paper Corp. has entered into a restructuring and support agreement, the company announced Monday.
Catalyst stated that the company and its board believe the new agreement is the best alternative for the company and its noteholders, shareholders and other stakeholders. Catalyst stated that the plan will address the company's debt level, preserve jobs and help ensure Catalyst remains a viable business.
"The proposed plan of arrangement provides the opportunity to reposition Catalyst Paper for the future at this very challenging time for the entire paper and pulp industry," said Catalyst president and CEO Kevin Clarke.
"There are many interested parties involved, and we are continuing to work hard to address the requirements that will enable us to finalize the transaction in a timely and effective manner."
The company stated that thus far the agreement has been signed by a number of holders of approximately US$164 million in senior secured notes and holders of approximately US$34.5 million in outstanding senior notes.
The company expects additional holders of the notes to sign the agreement and approve the plan of arrangement.
The company announced in late January that it was filing for creditor protection.
Catalyst subsequently announced that it had lost $974 million in 2011.
