Elk Falls Workers

Campbell River B.C.

Catalyst Paper announces deferral of rights offering…

RICHMOND, BC, Feb. 1, 2010

Catalyst Paper announced today that it has decided to defer proceeding with a previously announced proposed rights offering. In November, 2009 the company announced, in conjunction with an exchange offer involving its outstanding 8 5/8% Senior Notes due June 15, 2011 (the “Exchange Offer”), that upon completion of the Exchange Offer it intended to conduct a rights offering to raise proceeds of up to $100 million. Continue reading

February 1, 2010 Posted by | News | Leave a comment

Chinese buy a stake in Vancouver Island pulp mill

By Gordon Hamilton, Vancouver Sun January 29, 2010

VANCOUVER — China’s largest producer of rayon fibre has bought an ownership position in a northern Vancouver Island pulp mill, providing it with needed capital and assured access to the Chinese market.

Port Alice’s Neucel Specialty Cellulose announced Friday that it has entered into a deal with Zhejian Fulida Ltd. that will inject new capital and ownership into the northern Vancouver Island pulp mill. Part of the deal includes a long-term supply agreement. Continue reading

January 29, 2010 Posted by | News | Leave a comment

Catalyst tax rate ruling

Catalyst loses in three bids to seek tax relief

Vancouver Sun Dec 21st

The right of three more municipalities to tax a major industry to the hilt has been confirmed by B.C. Supreme Court.

Rulings by Justice Peter Voith were released Monday, dismissing almost all the points in three separate petitions where Catalyst Paper Corp. sought relief from high municipal taxes in Campbell River, Port Alberni and Powell River. Voith made a similar ruling concerning North Cowichan in October.

In each community, a Catalyst mill is far and away the largest employer. This year, the company paid each municipality just $1.5 million toward tax bills that added up to a total of $23 million in all four places.

Only one small portion of the most recent rulings favoured Catalyst. It set aside the tax rate imposed on mill property by the Regional District of Campbell River, although not the much larger amount imposed by the city.

Most costs of the Campbell River court case and all costs for the other two were awarded to the cities.

Continue reading

December 22, 2009 Posted by | - Mill News, News | 4 Comments

People on the move – Jim Colquhoun

Jim Colquhoun  Senior advisor, human resources at Elk Falls Division has decided to leave the company to pursue other opportunities effective Dec. 31. Jim joined Catalyst in 1997 at Elk Falls and has been a key member of the HR team at the mill.

We have relied on Jim’s expert knowledge and counsel on many issues over the years both at Elk Falls and across the company. We wish him every success in his new opportunity with the Central Okanagan School District in Kelowna.

  • It’s not often that I post staff movements on the site but most of our members have had contact with Jim the last few years. We’ve had a lot of interaction with Jim during our standing committee, kraft mill closure, cost savings meetings and of course the last year with the curtailment. I have always found him to be easy to deal with, he has a great amount of integrity and I wish him the best in his new career.
    Just one more person that Elk couldn’t afford to lose… but did.

December 7, 2009 Posted by | - Mill News | 4 Comments

New Elk Falls tug

On the news tonight I see that Elk Falls has a stern wheeler tied up at its dock. Could it be a cost effective leased tug for Elk since our tug the Seymor Crown is away. 🙂

I understand the owner has come to an agreement to keep his boat at the mill while we are down.

December 4, 2009 Posted by | News | Leave a comment

Another Seniority List

I  have put up a new seniority list as of the end of November. About 5 more people left.

December 4, 2009 Posted by | Seniority List | 7 Comments

Presidents Council

Update to Presidents Council…
On some of the financial blogs I have seen comments about a high level meeting being held between the Company and the Union along with much speculation as to the possible meanings behind it. I want to provide some explanation and possibly dispel some of the rumours floating around out there.
President’s Council was held Nov 26th. At Presidents Council, there are typically 1 or 2 people from each of the Locals. After that meeting several of the Locals felt that the nature of information given by the Company at the meeting warranted holding another larger meeting to allow all their wage delegates to hear the presentations 1st hand.
So at the Unions request, another meeting was held on Tuesday and the Company went through the same presentations for us.
We used the opportunity to get a lot more clarification on several of the issues they spoke about. There will be a full report at next Monday’s meeting! Ian

Presidents Council was held last week. The Company shared details of their proposed 2010 budget, as well as some details on the debt exchange/refinancing plan which was recently announced. It would be fair to say the Company is still totally focused on the cost side of the business. They have budgeted for Elk and half of Crofton’s pulpmill to be down for the year at this point. They seem to feel the paper markets will not improve until at least 2011. On the bond side they seem confident that it will work for them as it is existing bond holders swapping debt due in 2011 for debt due in 2016. This will also give them some cash to play with.
Continue reading

December 1, 2009 Posted by | News | 23 Comments

Co-Gen settlement

This was released today. we don’t know what the ramifications are yet.

November 20, 2009

Catalyst and Island Co-gen reach arbitration settlement

Richmond (BC) – Catalyst Paper (TSX:CTL) announced today that it has settled the arbitration proceeding relating to its 20-year Energy Services Agreement  with Island Cogeneration No. 2. Inc. (Cogen). This arbitration was a result of Catalyst’s declaration of force majeure under the Energy Services Agreement due to the permanent closure of its Elk Falls pulp mill in November 2008 as a result of the unavailability of sawdust fibre.

This settlement terminates the Energy Services Agreement and all of Catalyst’s related obligations including its contingent liability for energy not purchased. Subject to subdivision approval, Catalyst has agreed to transfer to Cogen land currently leased by Cogen upon which its energy facility is located. Catalyst has also granted certain easements and access rights to Cogen to facilitate the independent operation of the energy facility.  In addition, Cogen has agreed to take steps to eliminate its reliance on Catalyst for certain services and the company has agreed to cooperate with Cogen in that regard.

November 20, 2009 Posted by | News | 6 Comments