Richmond-based Catalyst Paper Corp. (TSX:CTL) received BC Supreme Court approval yesterday for its reorganization plan. The company's second amended plan under the Companies' Creditors Arrangement Act received 99% support from creditors at meetings held earlier this week.
The Supreme Court's approval of the plan comes only five months after Catalyst Paper's entry into creditor protection on January 31. A confirmation hearing under the Chapter 15 process of the United States Bankruptcy Court for the District of Delaware is expected to occur in mid-July. Approval from both courts is required before the company can complete its reorganization.
Catalyst president and CEO Kevin Clarke said, "Today's court order is a major milestone in our drive to emerge from creditor protection efficiently and quickly.
"We said from the outset that our objective was to put our company on stronger financial footing for the future, and we are proceeding at a rapid pace to do just that. We're in discussion now with lenders to secure the necessary exit financing and expect to complete the reorganization process in the near term."
