RICHMOND, B.C. – Pulp and paper producer Catalyst Paper Corp. (TSX:CTL) has secured up to $ 175 million in financing as it moves forward with restructuring under court protection from creditors.
The struggling company said late Tuesday that JP Morgan agreed to provide debtor-in-possession financing during the CCAA process.
Catalyst also received an initial order from the B.C. Supreme Court for creditor protection, expiring expiring Feb. 14. The period will be extended as the court sees fit, the Vancouver-area company said.
Early Wednesday, the Toronto Stock Exchange announced it is suspending trading in the company’s stock immediately and is reviewing whether the stock should be delisted from Canada’s senior market.
The filing comes after Catalyst failed to win support from enough of its lenders and from unionized workers at a mill in Crofton, B.C., who rejected contract concessions.
Catalyst has said it would be business as usual during the restructuring process under the federal Companies’ Creditors Arrangement Act.
The company also plans a U.S. filing for Chapter 15 court protection, a form that foreign companies operating in the U.S. employ when seeking protection from creditors.
Catalyst Paper manufactures diverse specialty mechanical printing papers, newsprint and pulp and sells to retailers, publishers and commercial printers in North America, Latin America, the Pacific Rim and Europe.
The company has three mills in British Columbia and one in Arizona with a combined annual production capacity of 1.9 million tonnes.
Local news from metronews.ca/vancouver
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