Catalyst Paper Completes CCAA Restructuring
|Areas||Banking and Finance Law, Corporate Finance and Securities, Corporate Restructuring, Tax|
Goodmans represented certain holders of Catalyst Paper's unsecured notes in connecton with Catalyst Paper Corporation's completion of its restructuring under the Companies’ Creditors Arrangement Act. As a result of the restructuring and related transactions, Catalyst Paper reduced its debt by $390 million, eliminated $80 million of accrued interest and reduced annual interest expense and other cash costs by approximately $70 million.
The restructuring was completed pursuant to the terms of a Restructuring and Support Agreement dated March 11, 2012, as amended, entered into between Catalyst Paper and certain holders of its $390.4 million 11% senior secured notes due December 15, 2016 (“First Lien Notes”) and its $250 million 7?% senior unsecured notes due March 1, 2014 (“Unsecured Notes”). The restructuring, which included more than 40 court appearances and extensive negotiation with various stakeholder groups, was approved at creditor meetings held on June 25, 2012. This approval followed certain amendments to the plan of arrangement which were made following creditor meetings held on May 23, 2012 which failed to provide the requisite creditor approval.