This page is for information purposes only and you should consult your professional adviser if you have any questions or are uncertain as to your rights or obligations.
On March 21, 2013, the sale of Catalyst's investment in Powell River Energy Inc. closed, and net proceeds of the sale (the "PREI Proceeds Pool") were transferred to the Monitor. The net proceeds totalled CDN $12,729,104.00.
Pursuant to the Second Amended Plan, on March 26, 2013, the Monitor completed the distribution of all available funds to all admitted Unsecured Creditors who share in the PREI Proceeds Pool.
This payment, along with the payment to convenience class creditors (November 23, 2012), and the release of New Common Shares to equity creditors (December 19, 2012), completes the claims administration process.
On February 13, 2013 Catalyst executed an agreement to sell its interest in PREI to Powell River Energy Trust for $33 million. The agreement must be approved by the Court and a hearing has been scheduled for Monday February 25, 2013 at 9:00 am in the Supreme Court of British Columbia in New Westminster, B.C. The Monitor has issued its 22nd report to the Court and supports the approval of this sale.
The Company hopes to complete the sale by the end of March 2013. Once the sale has been completed, a portion of the net proceeds will become available to the Unsecured Creditors pursuant to the Second Amended Plan that was approved by the Creditors and the Court. Based upon the final claims values and the net proceeds available from this pending sale, the Monitor estimates that creditors will receive 3.8 cents for each dollar of their claim.
Distribution Update - Equity Election Creditors
On December 19, 2012, all creditors who chose to receive equity (shares) instead of a cash distribution payment, were furnished with their allotment of New Common Shares. On January 4, 2013, Catalyst Paper Corporation issued a detailed press release on the issuance of the New Common Shares, and we provide a link to that release:
The press release highlights the details surrounding the Small Shareholder Selling Program, for shareholders holding 99 shares or less.
On January 7, 2013, the New Common Shares were listed on the TSX Toronto Stock Exchange.
Distribution Update - Unsecured Creditors
No distribution has been made yet for the Unsecured Creditors. A distribution to the Unsecured Creditors will not take place until the sale of Catalyst's interest in Powell River Energy Inc. ("PREI") has occurred. The Company continues to work on this sales process, and updates will be posted to this website as they become available.
Distribution Update - Convenience Creditors
All disputed claims have been settled or are awaiting court approval of a settlement. A distribution is being made today to all the Convenience Creditors except members of the STIP class action as this settlement must be approved by the court in the class action proceeding. Upon receipt of that approval, a distribution shall be made in respect of that claim. Cheques were sent via ordinary mail for this distribution.
Distribution Update - Equity Election and Unsecured Creditors
No distribution has been made yet for the following creditors:
The Company is currently working on the release of the New Common Shares to the Equity Election Creditors and it is expected that this distribution will be the next to occur.
A distribution to the Unsecured Creditors will not take place until the sale of Catalyst's interest in Powell River Energy Inc. ("PREI") has occurred. The Company continues to work on this sales process.
Claims & Distribution Update
No distribution has been made yet for the following creditors:
The Company and the Monitor continue to work on resolving three disputed claims with the respective claimants. Once these disputed claims are determined, the distributions to the Convenience Creditors and the Equity Election Creditors will be made.
A distribution to the Unsecured Creditors will not take place until the sale of Catalyst's interest in Powell River Energy Inc. ("PREI") has occurred. The Company continues to work on this sales process and hopes it may reach a conclusion by the end of the year.
The three groups of creditors are described below for the convenience of readers:
Equity Election Creditors
Creditors who have filed an election to take new common shares in Catalyst instead of a cash payment they would otherwise have been entitled to receive.
An update to this website will be posted when any of the following events occur:
Catalyst's second amended and restated plan of arrangement under the CCAA was implemented today. As a result:
The Plan Implementation date, originally set for August 15, 2012 has been tentatively reset to September 14, 2012. Upon Plan Implementation, Unsecured Creditors will be entitled to receive a cash distribution or New Common Shares of Catalyst, however the date of distribution is currently unknown.
The cash proceeds received in a sale of Catalyst’s interest in Powell River Energy Inc (the “PREI Proceeds Pool”) will fund some part of the distributions to be made to the creditors. As such, the impending distribution to creditors is also dependent on the sale of PREI.
A claim has been made on behalf of certain retirees for the loss of their extended health benefits. The date on which the extended health benefit plans will be effectively cancelled is yet to be determined. Once the date has been determined, another update will be posted to this website.
Catalyst has also announced the permanent closure of its Snowflake mill located in Arizona. The mill is expected to shut production on September 30, 2012.
The deadline for submitting the Equity Election Form has been extended to July 30, 2012 at 2pm (Vancouver time). Questions regarding the equity election should be directed to Patricia Marshall at 604-806-7070 or by email at email@example.com.
Now that Catalyst Paper Corporation ("Catalyst") has received the necessary approvals from its creditors and the Court of its Second Amended Plan of Compromise and Arrangement (the "Plan"), Unsecured Creditors must consider whether they wish to receive their distribution under the Plan in cash or take New Common Shares of Catalyst.
Pursuant to the Plan, Unsecured Creditors with Allowed Claims are entitled to certain distributions in return for the release of their claims against Catalyst as summarized below:
Unsecured Creditors who wish to receive New Common Shares of Catalyst, must review the Equity Election Notice and complete the Equity Election Form. Copies of these notices and forms were sent to 2014 Noteholder through their bank/broker. General Unsecured Creditors including Extended Health Benefits Creditors were sent this information by email or regular mail. Additional copies of the notices and forms are located on this website in the appropriate claims and voting process tab.
If an Equity Election Form is not filed, Unsecured Creditors will receive a cash payment pursuant to the Plan. The Equity Election Form must be submitted in the following manner:
The Supreme Court of British Columbia approved the Company's Second Amended Plan today. The Company expects to implement the Second Amended Plan on or about August 13, 2012.
Consistent with the approval of the Second Amended Plan, the Court suspended the SISP except with respect to the sale of PREI which will proceed in accordance with the provisions of the SISP. 50% of the proceeds from the sale of PREI is distributable to the Unsecured Creditors pursuant to the Second Amended Plan.
Distributions of the New First Lien Notes and the New Common Shares to the First Lien Noteholders shall be made upon implementation of the Second Amended Plan. The Distribution to the General Unsecured Cash Creditors (Creditors with claims less than $10,000 or those creditors who have made a Cash Election) are expected to be made as soon as possible after implementation but only once all disputed claims are resolved. The Distribution to the remaining Unsecured Creditors is expected to be made upon completion of the sale of PREI and once all disputed claims are resolved.
The creditors meetings to consider the Second Amended Plan were held today. Both classes of creditors voted in favour of the plan and so the Company will proceed to obtain Court approval during a hearing scheduled for June 28, 2012 in the Supreme Court of British Columbia. Approval in the US Bankruptcy court will be sought in early July.
Separately, the Court granted the following applications made by the Company:
The application by RSEA and CSE&P with respect to the question about whether the deficit in the Salaried Pension Plan qualified as a deemed trust pursuant to the Pension Benefits Standards Act was adjourned generally as the issue will not likely require resolution in the event that the Company's Second Amended Plan is approved by the Court.
The Company has filed the following applications with the Court which are scheduled to be heard on Monday June 25, 2012:
The Monitor has completed its 18th report to the Court dated June 23, 2012 with respect to these applications which has been posted on this website. The Monitor's report includes a report on the Company's cash flow for May 2012 and a revised cash flow forecast for the period June 1, 2012 to September 30, 2012.
On June 25, 2012, the Court is also scheduled to hear submissions relative to the applications made by RSEA and CSE&P for a declaration that a deemed trust in favour of the Salaried Pension Plan deficit exists. Numerous application materials have been filed with respect to these applications and they are posted on this website. The Monitor notes, however, that this application may be adjourned in the event that the Creditors approve the Second Amended Plan during creditor meetings scheduled for the morning of June 25, 2012.
The Company obtained the Court's approval for the filing of its Second Amended Plan today (the "Supplemental Meetings Order"). Creditor Meetings to consider the plan (the "Second Meetings") are to be held on Monday, June 25, 2012 at the Delta Vancouver Airport Hotel, 3500 Cessna Drive, Richmond, B.C. The meeting for the Unsecured Claims Class will be held at 10:00 am followed by the meeting of the First Lien Noteholder Class at 11:00 am.
The Monitor has reviewed the Second Amended Plan and has concluded that it is fair and reasonable and recommends that the creditors of Catalyst vote in favour of the Second Amended Plan. Details of the Second Amended Plan and the Monitor's analysis and conclusions are contained in its 17th report dated June 17, 2012.
The Supplemental Meeting Order outlined the voting process applicable for the Second Meetings. In summary, if you voted on the previous version of Catalyst Paper Corporation’s Plan of Compromise and Arrangement (the "Amended Plan"), whether in person or by proxy, at the meetings held on May 23, 2012, that vote will be counted at the Second Meetings and you do not need to vote again at the Second Meetings unless you wish to change or revoke your vote. Other details are as follows:
If you have not voted previously (at the meetings held on May 23, 2012) or you wish to change your vote, you should contact your bank or broker immediately to provide your voting instructions so that it is included in the Master Proxy submitted by your bank or broker.
Noteholders with additional questions should contact, Globic Advisors, Inc. (Attention: Robert Stevens) at One Liberty Plaza, 23rd Floor, New York, NY 10006, phone: 212-227-9699, facsimile: 212-271-3252 or email: firstname.lastname@example.org for additional information.
General Unsecured Creditors
Please consider the following:
Extended Health Benefit Creditors
The Second Amended Plan has included provisions to cancel the extended health care benefits for retired salaried employees ("RSEs"). As a result, the RSE's will have an Extended Health Benefit Claim and are entitled to vote on the Second Amended Plan as a General Unsecured Creditor. RSE's are not, however, permitted to make a Cash Election and the Extended Health Benefit Claims are not considered Convenience Claims pursuant to the Second Amended Plan.
The Court has ordered that the Catalyst TimberWest Retired Salaried Employees Association ("RSEA") submit a proof of claim to the Monitor on behalf of all RSEs and has further authorized RSEA to vote on behalf of all RSEs. RSEA has indicated that it intends to vote the Extended Health Benefit Claims in favour of the Second Amended Plan.
Any RSE who does not wish vote in favour of the Second Amended Plan may vote their claim themselves. To do so, the RSE must either vote in person at the creditor meeting or submit a proxy to the Monitor prior to the commencement of the Second Meeting. Proxies are available on this website under the "Claims and Voting Process - Extended Health Benefit Creditors" tab. RSE's do not need to indicate the value of their claim on the Proxy as this will be provided to the Monitor by RSEA.
The following documents have been posted on this website as required by the Supplemental Meetings Order made by the Court on June 18, 2012:
Claims and Voting Process – General Unsecured Creditors tab:
Monitor’s Reports tab:
Catalyst Press Releases tab:
Claims and Voting Process – Unsecured and First Lien Noteholders tabs:
Any enquiries regarding the voting process should be directed to Ms. Patricia Marshall of PriceWaterhouseCoopers Inc. at 700-250 Howe Street, Vancouver, BC, V6C 3S7, phone: (604) 806-7070, facsimile: (604) 806-7806, or email: email@example.com
The Company is seeking approval from the Court on Monday June 18, 2012 to file another Plan of Arrangement (the "Second Amended Plan") pursuant to the CCAA proceedings. In addition, the Company will be seeking the Court's approval to hold meetings of creditors to consider the Second Amended Plan on Monday June 25, 2012 and, subject to the creditor approvals, seeking a hearing on June 28, 2012 to have the Court approve the Second Amended Plan.
The key changes to the plan include:
Special procedures are being sought for voting on the Second Amended Plan. In particular, the all votes lodged for the vote during the creditor meetings held on May 23, 2012 (whether in person or by proxy) will be deemed to be lodged at the creditor meetings to consider the Second Amended Plan unless they are revoked by the creditor. Details on how to revoke the votes will be provided to creditors upon approval by the Court.
The Company is currently undertaking its Sales and Investment Solicitation Process ("SISP") as previously ordered by the Court and a number of parties have been identified as qualified bidders. This process shall continue during the time frame required for the creditors to consider the Second Amended Plan. In the event the Second Amended Plan is approved by the Creditors and the Court, the Company will seek and order of the Court to suspend the SISP except with respect to the sale of the PREI asset.
The Company held meetings of creditors for the First Lien Notes Claim Class and the Unsecured Claims Class today to vote on the Amended Plan of Compromise and Arrangement dated May 15, 2012. The First Lien Notes Claim Class approved the Amended Plan but the Unsecured Claims Class did not. Details of the vote results are contained in the Monitor's 16th report to the Court dated May 23, 2012 which is posted on this website.
The Company has advised the Monitor that it will commence the Sales and Investor Solicitation Process (the "SISP"), previously approved by the Court, immediately. In the mean time, the Company intends to continue operations consistent with its business plan. The Company's DIP facility remains in place to facilitate continued operations during this sales process.
The Company has amended its Plan of Arrangement (the "Amended Plan"). The Amended Plan will be considered at the Creditor's meetings now scheduled for May 23, 2012.
A summary of the changes incorporated in the Amended Plan follows:
The Monitor has issued its report on the fairness and reasonableness of the Amended Plan. The Monitor considers the Amended Plan to be fair and reasonable and therefore it recommends that the creditors vote in favour of the Amended Plan.
A copy of the Amended Plan and a blacklined version comparing the Amended Plan to the Plan, has been posted on this website in the Plan of Compromise and Arrangement section. A copy of the Monitor's 15th report dated May 15, 2012 is contained in the Monitor's Report section of this website. Creditors are encouraged to refer to the Amended Plan and the Monitor's 15th Report for further details.
As a result of the amendments to the Plan, there are impacts on the elections that creditors can make as summarized below:
The process for voting on the Amended Plan remains unchanged even though the creditor meeting date and locations have changed as noted in previous updates. Creditors are entitled to vote in person or by proxy. Any creditor who has previously submitted a proxy need not re-submit their proxy unless they wish to change their voting instructions.
The Creditor Meetings set to vote on the Company's Plan of Arrangement have been further rescheduled. The Creditor Meetings have been delayed and are now scheduled to be held on Wednesday, May 23, 2012. The times have not changed: the Unsecured Creditor Class meeting will be held at 10:00 am and the First Lien Noteholders meeting will be held at 11:00 am. The location has changed to the Westin Wall Centre, Vancouver Airport Hotel, 3099 Corvette Way, Richmond, B.C. Canada.
Proxies of the General Unsecured Creditors can be submitted to the Monitor up to the commencement of their respective Creditors’ Meeting. Noteholders must submit their proxies to Globic Advisors no later than 4:00 pm (EST) Tuesday, May 22, 2012 . Noteholders should consult their participating bank to coordinate the timing for submission of these proxies so they reach Globic Advisors within that timeframe.
In keeping with the previous reporting timelines, the Monitor will issue its report on the fairness and reasonableness of the Plan on or before May 16, 2012, being 7 days prior to the Creditors’ Meetings. The Monitor will file its report with the Court and post a copy of that report on this website. Creditors may wish to consult this report when determining whether to approve the Plan or not.
The Court issued its reasons on the application by five Critical Suppliers to have the Critical Supplier Order rescinded. The Court dismissed the application and the Critical Supplier Order remains in effect.
A court hearing has been scheduled for May 10, 2012 to deal with the following matters:
The Creditor Meetings set to vote on the Company's Plan of Arrangement have been further rescheduled. The Creditor Meetings have been delayed three days and are now scheduled to be held on Friday May 18, 2012. The times and location have not changed: the Unsecured Creditor Class meeting will be held at 10:00 am and the First Lien Noteholders meeting will be held at 11:00 am at the Delta Vancouver Airport Hotel located at 3500 Cessna Drive, Richmond, B.C. Canada.
Proxies of the General Unsecured Creditors can be submitted to the Monitor up to the commencement of their respective Creditors’ Meeting. Noteholders must submit their proxies to Globic Advisors no later than 4:00 pm (EST) Thursday, May 17, 2012 . Noteholders should consult their participating bank to coordinate the timing for submission of these proxies so they reach Globic Advisors within that timeframe.
In keeping with the previous reporting timelines, the Monitor will issue its report on the fairness and reasonableness of the Plan on or before May 11, 2012, being 7 days prior to the Creditors’ Meetings. The Monitor will file its report with the Court and post a copy of that report on this website. Creditors may wish to consult this report when determining whether to approve the Plan or not.
The Company received the approval of the Court to complete the sale of various Poplar Farms lands. In addition, the Court was advised of the new position taken by the 2016 Noteholders that they believe that their security covers the proceeds of sale of those assets that had previously been identified as excluded assets which would, in effect, give them security over all of the assets of Catalyst. The monitor was directed to note this in its report on the Plan as the Court recognized that this issue would have to be determined at subsequent hearing. Separately, a hearing has been scheduled for Thursday May 10, 2012 as a result of an application by certain Critical Suppliers to have the Critical Supplier Order rescinded.
A court hearing has been scheduled for Monday, May 7, 2012 to deal with the following matters:
The Monitor has completed its eleventh report dated April 27, 2012 which is now posted on this website. The report was prepared at the request of the Court to outline the status of payments made to certain suppliers who held pre-filing claims as permitted under the Amended and Restated Initial Order. These payments were made primarily to facilitate uninterrupted operations and the restructuring proceedings and further details are contained in the report.
The Meetings of Creditors scheduled for May 2, 2012 have been rescheduled to May 15, 2012. The rescheduled meetings will be held at the same location (Delta Vancouver Airport Hotel, 3500 Cessna Drive, Richmond, B. C. at 10:00 am for the unsecured creditors and 11:00 am for the First Lien Noteholders.
The Court date to sanction and approve the plan of arrangement, subject to the vote of the creditor meetings, has also been rescheduled from May 7, 2012 to May 18, 2012.
The new dates have been set to allow for the Company to consider feedback from its creditors and to advance discussions in order to gain further support for the restructuring.
Creditors should note that proxies need not be filed with their proofs of claim. General Unsecured Creditors may file them prior to the date of the Creditor meeting. The deadline for Noteholders to submit their master proxies to Globic Advisors will now be 4pm (Eastern Time) May 14, 2012. Noteholders should coordinate their submissions in consultation with their participating bank.
In light of the new timeline, the Monitor will issue its report on the fairness and reasonableness of the Plan on or before May 8, 2012 and post it on this website. Creditors may wish to review and consider the Monitor's view on the Plan prior to submitting their proxies or voting at the Creditor's meeting.
The Court granted the Company's application to have the stay of proceedings extended to June 30, 2012. The stay extension was considered necessary as this extra time would be required to allow the creditors to vote on the Plan or in the alternative, to allow the Company time to implement the SISP.
The B.C. Court of Appeal dismissed the application by Koskie Minsky LLP originally filed on March 6 (and subsequently amended), of certain paragraphs within the Amended and Restated Initial Order issued in the CCAA proceedings relating to the priorities of possible pension claims relative to certain Court ordered charges. Koskie Minskly LLP has also filed an application to have the Court determine whether the pension deficit within the Salaried Pension Plan of approximately $115 million would constitute a deemed trust pursuant to the B.C. Pension Benefits Standards Act and the priorities of that deemed trust relative to the 2016 Security and other charges. The Court is scheduled to hear this application on May 7, 2012 in the event that the Company's Plan is not approved by its Creditors.
The Monitor has published its 10th report to the Court today. The report comments on the Company's operations to March 31, 2012 including its cash flow and on the Company's application for an extension of the stay of proceedings. The 10th report also comments on the legal opinion the Monitor received from US counsel on the validity of the 2016 security in the United States.
The Company obtained a court order today that confirmed the re-scheduling of the creditor meetings to May 2, 2012. In addition, the Court adjusted the deadline by which Noteholders must submit their proxies. All Noteholder proxies must be submitted to Globic Advisors no later than 1pm (Pacific Time) on May 1, 2012. This time extension will provide the Noteholders an opportunity to review the Monitor's report on the fairness and reasonableness of the plan of arrangement which will be published no later than April 25, 2012 prior to submitting their proxies. This monitor's report will be posted on this website once published.
The Company will also be making an application to the Court on Thursday April 19, 2012 for an extension of the stay of proceedings which is currently scheduled to expire on April 30, 2012.
The Meetings of Creditors scheduled for April 23, 2012 have been rescheduled to May 2, 2012. The rescheduled meetings will be held at the same location (Delta Vancouver Airport Hotel, 3500 Cessna Drive, Richmond, B. C. at 10:00 am for the unsecured creditors and 11:00 am for the First Lien Noteholders.
The Court date to sanction and approve the plan of arrangement, subject to the vote of the creditor meetings, has also been rescheduled from April 25, 2012 to May 7, 2012.
The new dates have been set to allow for court scheduling issues and to provide the Monitor and Catalyst additional time to complete the review and verification of claims. Claims must still be filed by 5pm (Vancouver time) on Wednesday April 18, 2012.
Creditors should note that proxies need not be filed with their proofs of claim. General Unsecured Creditors may file them prior to the date of the Creditor meeting. Court directions will be sought to amend the deadline for proxies for the Noteholders.
In light of the new timeline, the Monitor will issue its report on the fairness and reasonableness of the Plan on or before April 25, 2012 and post it on this website. Creditors may wish to review and consider the Monitor's view on the Plan prior to submitting their proxies or voting at the Creditor's meeting.
The Monitor is in the process of completing its evaluation of the Company's plan. Some of the key points that must be assessed include a confirmation of whether the security held by the 2016 Noteholders is valid and enforceable and whether sufficient value is being allocated to the unsecured creditors in the plan. Additional points are also being considered by the Monitor. As an interim step, the Monitor has issued its nineth report to the Court dated April 10 that addresses the validity of the security held by the 2016 Noteholders and the Monitor's view of value for the major assets of the Company that are not subject to the security held by the 2016 Noteholders. The Monitor's report has now been posted on this website.
A settlement was reached with a number of the Critical Suppliers who had applied for the rescission of the Critical Suppliers Order and Charge. As a result, the application was adjourned. Details of the settlement are being documented but generally, the Company is to advance $1 million a week to be deposited in a trust fund administered by the Monitor. A minimum of $4 million must be advanced prior to the Creditor Meetings scheduled for April 23, 2012 and the maximum to be advanced will be $12 million. The intent is that the Critical Supplier charge on the property will be replaced by the trust fund as security for the credit extended by the Critical Suppliers.
During the court hearing on April 2, 2012, the Court approved the sale of lands in Washington State and the Stalking Horse Purchase Agreement. The applications by the Critical Suppliers were adjourned until a hearing which has been scheduled for Wednesday April 4, 2012.
A number of court applications are expected to be heard today, April 2, 2012 as follows:
The Monitor has published its seventh report date March 27, 2012 which includes the Company's revised cash flow forecast and the Monitor's views on the continuation of the Critical Supplier designations. The Monitor has also published its eight report dated April 1, 2012 which addresses the stalking horse purchase agreement, the sale of the Washington State lands and the application by the Critical Suppliers scheduled to be heard on April 2, 2012. These reports are posted in the Monitor's report section of this website.
The claims process has commenced. The monitor is in the process of sending a claims package to all known creditors of the Company. Copies of the documents sent to the creditors can be found in the Claims and Voting Process section of this website.
Creditors who have questions with respect to the claims process are invited to contact the Monitor.
The Court made a number of orders today in response to the Company's applications. In particular, the Court approved:
The Court recognized the some key concerns raised during the hearings including:
The Monitor is working on its analysis of the plan and intends to issue information as follows:
Creditors may wish to review these reports as part of their evaluation of the Company's plan. The reports will be posted on the Monitor's website once they are published.
As a result of the orders made by the Court, claims packages and information packages shall be distributed to the creditors shortly. All creditors must be aware of two critical dates:
Creditors who have questions with respect to this process are invited to contact the Monitor.
The Monitor has published its fifth report dated March 19, 2012 and its sixth report dated March 20, 2012 and each report deals with different portions of the applications that the Company is making to the Court on Wednesday March 21, 2012. Copies of these reports can be found in the Monitor's reports section of this website.
As noted, previously, the Company has entered into an RSA which forms the basis of its proposed restructuring plan. In furtherance of this restructuring the Company announced today that it had reached new five year labour agreements with unions representing workers at the Crofton, Port Alberni ad Powell River mills that will become effective May 2012. The new agreements call for a 10% reduction in hourly rates along with various adjustments to vacation, health benefits and work rules to improve the Company's cost structure and are expected to provide annual savings of between $18 and $20 million.
The Company has also scheduled a court hearing for Wednesday March 21, 2012 and has applied to the court for the following:
The Monitor shall be filing its report on these applications shortly but the Company's application materials are posted in the motions materials portion of this website. The Monitor notes that the Company's timelines for the claims process and the creditor meeting are aggressive. The key dates are as follows:
The Monitor will be completing its independent review of the Company's plan and will issue a report thereon. The Monitor expects that it will be posted on this website no later than April 16, 2016 so that it is available for the Creditor's review prior to voting on the plan.
As a result of hearings held on Thursday March 8th and Friday March 9, 2012, the Court issued the following orders:
Koskie Minsky LLP has filed an amended Notice of application for leave to appeal certain decisions of Justice Sewell in the B.C. Court of Appeal. The scope of the appeal has been reduced to focus on the following:
The Company announced today that it had entered into a Restructuring and Support Agreement ("RSA") with certain holders of the 2016 Notes and the 2014 Notes with respect to a plan of arrangement to be filed in the CCAA proceedings. Further information can be obtained in the Company's press release included on this website and a copy of the RSA can be found on the Company's website, SEDAR and EDGAR.
The Monitor has issued its fourth report to the Court dated March 7, 2012 and a copy is posted in the Monitor's Reports segment of this website. In addition, Koskie Minsky LLP filed a notice of application for leave to appeal certain decisions of Justice Sewell in the B.C. Court of Appeal on March 6, 2012. A copy of this notice is posted in the Motion Materials segment of this website.
Applications have been filed in respect of the court hearing scheduled for March 8, 2012. The Company is seeking orders from the court that:
A further application is being sought by the Pulp, Paper and Woodworkers of Canada, Local 2 and various locals of the Communications, Energy and Paperworkers' Union for an order naming the respective unions as representatives of persons who were formerly members of the unions and who are no longer employees of the Company (generally former union members who are "retirees").
Separately, the Company was successful in obtaining its recognition order pursuant to Chapter 15 of the United States Bankruptcy Code on March 5, 2012. A copy of the order is posted in the US Court Orders section of this website.
Justice Sewell has advised he has decided that the application of Ronal Gary McCaig et al (aka the Koski Minsky application) to be appointed authorized representatives and have Koskie Minsky designated as an Assistant pursuant to paragraph 8(c) of the Amended and Restated Initial Order should be dismissed. Justice Sewell has further advised that he will issue his reasons for this decision as soon as possible.
The next scheduled court hearing is March 8, 2012 at which time, the Company is expected to apply for an extension of the D&O charge. Additional issues may be placed before the court. The notices of application will be posted as soon as they become available. Further, the Monitor expects that it will release its fourth report to the Court in advance of the hearing and it too will be posted as soon as it becomes available.
The Company obtained an order from the Court today that extended the $31 million D&O Charge until March 8, 2012 at which time, a further extension will be considered on a de novo basis. As expected, the Company did not proceed with an application for the approval of the KERP, a sale order or confirmation of the engagement of its financial advisor. The Monitor notes that the financial advisor continues to provide service to the Company nevertheless, under the terms of its engagement with the Company.
Koskie Minsky LLP's application to be appointed as representative counsel to the non-unionized employees and former non-unionized employees entitled to retirement benefits from either registered pension plans or unregistered pension or benefit plans was heard by the Court. Various opposition to this application was heard by the Court including counsel for Catalyst TimberWest Retired Salaried Employees Association (the "Association"). By order of the Court on February 7, 2012, the Association had already been authorized to represent the beneficiaries of the Company's Salaried Pension Plan and the Court had Ordered that the Company would pay the costs of its counsel in that regard. During the hearing, counsel for the PPWC and for the CEP advised the Court that they would act as representatives for any former union members who were members of Catalyst Pension plans. Justice Sewell reserved his decision and the timing of his decision is currently unknown. Until Justice Sewell makes his decision, members of the Company's Salaried Pension Plan can contact the Association if they have any questions with respect to the Company's restructuring proceedings and the impact, if any, on the Company's Salaried Pension Plan. The main contact at the Association is Mr. Bill Sharkey who can be reached by email at firstname.lastname@example.org or my mail at P.O. Box 19084, 1153 - 56th Street, Delta, B.C. V4L 2P8.
On February 14, 2012, the Company advised the Court that it intended to return on February 23, 2012 to seek orders on a number of matters. The Company intends to defer many of the matters scheduled for the February 23, 2012 hearing. A summary of these matters follows:
The Company has been advised that the application by the Steelworkers International Union ("USW") will not be pursued. However, the application for the appointment of Koskie Minsky LLP as representative counsel for the non-unionized employees and former non-unionized employees entitled to retirement benefits from either registered pension plans or unregistered pension or benefit plans is expected to proceed.
A court hearing today was held during which a number of Orders were made. The Orders will be posted on the website as soon as they are available. In summary, however, the Order's included the following:
Readers are cautioned that they should consult the Order for specific details.
During the court hearing, the Company advised the judge that it was working diligently to move along the restructuring process as quickly as possible. Further, that it was working with representatives for the 2016 bondholders and the 2014 bondholders and holding discussions with other stakeholders. It planned to return to Court next week with the terms of a restructuring plan and seek permission from the Court to hold a creditor meeting or, in the alternative, seek another Order to advance the restructuring (and it suggested that an order to conduct a sales process was a possibility).
Over the weekend, the Company served a Notice of Application for the Comeback Hearing to be held on Tuesday February 14, 2012 supported by the affidavit of Anthony Purgas and the 4th affidavit of Brian Baarda. The purpose of the hearing is to confirm the Initial Amended and Restated Order with some minor modifications and extend the stay of proceedings to April 30, 2012. A further Notice of Application was served by counsel representing the Steelworkers International Union to seek some minor modifications to the Initial Amended and Restated Order and also a requirement that the Company place sufficient monies in trust to provide security for wages owing to members of the Steelworkers International Union. Copies of the notices and the affidavits are included in the Motion Materials section of this website. The Monitor will be issuing a report by the end of Monday February 13 and it will be posted on this website as soon as possible after it is served.
The Company obtained an order today from the US Bankruptcy Court that gives full force and effect to the Amended Initial CCAA Order dated February 6, 2012 made by the Supreme Court of British Columbia. In particular, the US Bankruptcy Court confirmed the Canadian Court's authorization of the DIP loan facility, the DIP Charge and the priorities of the various charges ordered by the Canadian Court. For further details, please refer to the materials filed in court and the court Order filed in the US Motion Materials and US Court Order sections of this website.
The Toronto Stock Exchange has determined that the Company's common shares will be de-listed at the close of the market on March 8, 2012 as the Company no longer meets the TSX continued listing requirements due to its financial condition. Trading of the common shares on the TSX will remain suspended. Shareholders with questions regarding this development may contact the Company personnel listed on the Company's press release dated February 8, 2012 and filed in the Press Release section of this website.
On February 6, 2012, the Court amended the Initial Order further to provide amended provisions with respect to Critical Suppliers. 16 Critical Suppliers were identified and ordered to supply goods and services on the same terms that existed on January 27, 2012. Each Critical Supplier shall provide trade credit to an amount specific to the Critical Supplier and 16 individual suppliers charges totalling 130% of the credit granted were ordered with each individual supplier charge ranking pari passu with each other. The Critical Suppliers will be entitled to interest on credit granted at the rate of the DIP loan rate plus 2%. The Critical Suppliers were granted leave to apply to the Court after March 11, 2012 to amend or rescind this Order and the four Critical Supplier Groups were entitled to reimbursement of their costs of the Critical Supplier proceedings in the amount of $15,000.
The Monitor also confirms that no claims process has been ordered for this proceeding at this time. Once the Court orders that a claims process be undertaken, creditors will be notified and provided with proofs of claim for submission.
On February 3, 2012, the Court approved the DIP Lender charge and authorized draws on the DIP credit facility. The application to permit payments pursuant to the Company's key employee retention program has been adjourned to the comeback hearing scheduled for February 14, 2012. The Company's application for the designation of certain suppliers as Critical Suppliers and a Critical Supplier charge was adjourned until 2pm on Monday February 6, 2012. The Monitor intends to issue a report on the Critical Supplier issue by noon Monday February 6 in advance of the court hearing.
Notice to creditors of the Company have been mailed and a copy is contained in the creditor communication section of this website. All creditors should note that pursuant to the Initial Order made on January 31, 2012, a hearing is scheduled for 9:45 am on Tuesday February 14, 2012 to confirm the Initial Order as amended (the "Comeback Hearing"). Materials to be filed in support of this hearing shall be posted on this website once they become available. Creditors are encouraged to visit this website to obtain current information on the progress of the Company's restructuring process.
Concurrent with Canadian proceedings the Company has commenced proceedings under Chapter 15 of the US Bankruptcy Code. An update on those proceeding follows:
The Company commenced its restructuring proceedings in Canada pursuant to the the Canada Business Corporations Act ("CBCA") and sought provisional relief for the US Bankruptcy Court pursuant to Chapter 15 on January 19, 2012. The Canadian proceedings were recognized as foreign main proceedings and a stay of proceeding was ordered.
On January 31, 2011, the company filed an application under the Companies' Creditors Arrangement Act ("CCAA") to change restructuring legislation, and to continue its restructuring under the CCAA. Amended Petitions and Pleadings were filed in the US Court on January 31, 2012, and an Amended Order granting provisional relief in respect of the CCAA proceeding was granted on February 1, 2012.
The stay of proceedings in the United States continues and an application for the Recognition Order has been scheduled for March 5, 2012. Further, another hearing is scheduled for February 8, 2012, during which the Company will seek an Order in aid of enforcement of the Canadian Court Order expected to be made on February 3, 2012.
A copy of all Petitions, Pleadings and Orders can be found under the US Court Orders and US Motion Materials tabs.
Notice has now been served for the hearing scheduled for Friday February 3, 2012 at 9:30 am. The Company will be seeking an order that:
The Company is also applying today for a Chapter 15 recognition order. Materials will be posted in respect of this application as soon as they are available.
On January 31, 2012, Catalyst Paper Corporation et.al. (the "Company") applied for, and received, an initial order pursuant to the CCAA from the Supreme Court of British Columbia which includes, among other points, a stay of proceedings against the Company. A further application is scheduled for Friday February 3, 2012 during which the Company will be seeking an order granting a charge for the DIP financing agreement approved by the court on January 31, 2012, designating certain critical suppliers and creating a charge in favour of these suppliers, and approval for a key employee retention program. A hearing for the extension of the stay period is scheduled for Tuesday February 14, 2012 at 9:45 am.
This Web site will be updated as information becomes available.
For more information, please contact: Patricia Marshall, Telephone: +1 604 806 7070, Fax: +1 604 806 7806, or via Email.