Move comes a day after workers at Catalyst denied a contract necessary to keep the company’s refinancing program alive.
January 31, 2012
by The Canadian Press
RICHMOND, B.C.—Catalyst Paper Corp. has filed for protection from creditors as it moves to restructure its debt and operations.
The move comes a day after its workers rejected a deal to keep the company’s new refinancing plan alive.
It had also failed to secure a second condition, support from two-thirds of its debt holders.
Catalyst said will continue its operations and it expects to meet its financial obligations during the restructuring process.
Earlier this month, Catalyst received the go-ahead from a B.C.-court to begin a planned restructuring while at the same time filing for protection from creditors in the U.S.
The company reached an agreement with creditors for a refinancing that would cut its debt, but it needed unanimous backing by the company’s six union locals for new labour contracts.