Catalyst Paper recorded a net loss of $11.7 million in the second quarter of 2012, an improvement over the $25.6 million loss the previous quarter.
According to the company, the improvement was largely due to gains from the sale of surplus assets and a reorganization of credit.
“We focused relentlessly on satisfying the requirements of the reorganization process and it’s gratifying to have gained creditor approval of our second amended plan of arrangement,” said Kevin Clarke, Catalyst’s president and CEO.
He said the company is now poised for “an orderly exit” in the third quarter.
“While market conditions are challenging, the benefit of reduced operating costs and the 60% reduction in debt puts us on much better competitive footing as our industry continues to reinvent for the future,” he said.
Catalyst filed for creditor protection on January 31 and announced a second amended plan of arrangement on June 14. The plan received creditor approval on June 25.
Catalyst’s creditor protection has been extended to September 30 and implementation of the approved plan of arrangement is conditional on Catalyst securing a new asset-based loan facility and adequate exit financing.
Earlier this week, Catalyst announced plans to shut down its Snowflake recycle mill.
