Elk Falls Workers

Campbell River B.C.

Catalyst Restructure plan fails… Sale process to begin.

99.5% of Catalyst Paper‘s secured creditors voted in favour of the company’s restructuring plan. Only 51% of the unsecured creditors voted in favour. Both classes of creditors needed to pass the plan by 66 2/3% in order for it to pass. (the press has been reporting that 64% of the unsecured creditors voted in favour, but the $100 million claim made by the union is being disputed, they rolled that amount in to see if the plan would pass with the disputed votes, but it was still short by 3%)

Since the amended plan of arrangement was not approved at the meetings, Catalyst Paper is now required to commence a sales process.

So whats next for retirees…. Well right now there won’t be any change until we see who the successful bidder is. If the secured creditors “Stalking Horse” bid is successful, then there won’t be any impact, but if other players become involved that could all go out the window. keep your fingers crossed that no-one else wants to bid.

May 24, 2012 Posted by | General | 5 Comments