Elk Falls Workers

Campbell River B.C.

Catalyst Files for Creditor Protection…

Jan 31, 2012 – Catalyst anounced today that to facilitate an orderly restructuring of its business and operations, they were filing for an Initial Order from the Supreme Court of British Columbia to commence proceedings under the Companies’ Creditors Arrangement Act (CCAA). The terms and conditions of the restructuring plan have not yet been determined by the company.

Catalyst had been working on a plan to retructure it’s debt. There were several conditions of that plan that needed to be met before Jan 31st. Unfortunately they came up short on two of those conditions

(a) a new labour agreement ratified by all six union locals at the company’s BC mills and
(b) two-thirds support of all 2014 and 2016 bondholders.

The CEP is retaining legal council to represent the interests of both past and current members at the CCAA proceedings.
Along with all the 1123/630 retirees, there are still many members on LTDI benefits from Catalyst, and I appreciate that they all have questions about how they could be impacted by this news.

Health & Welfare Benefits, Bridging, and Pension top-ups are just a few of the several areas of concern that people have been calling about, but at this time we are unsure of the answers. As we find out more information, I will ensure its posted here. Feel free to post any questions you may have, even though we don’t currently have answers, your questions could help us identify other issues that we aren’t even aware exist.

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January 31, 2012 Posted by | CEP Issues, General | 8 Comments