It looks like Crofton's mill will remain under Catalyst's ownership after creditors voted more than 99 per cent in favour of the firm's new restructuring plan this morning.
The approval was necessary under the Companies Creditors Arrangement Act in Canada.
“We have received support from a majority of stakeholders since we began the reorganization process and today’s vote of support by creditors for the second amended plan of arrangement sets out a clear path forward,” Catalyst CEO Kevin J. Clarke said in a media release. “With the cooperation of employees, vendors, customers, pensioners and investors, Catalyst has been able to make progress through a very complicated situation at an unprecedented swift pace.”
According to the Catalyst press release, a sanction hearing under the CCAA process is scheduled to occur on Thursday in the Supreme Court of British Columbia and pending the B.C. Court approval, a confirmation hearing in U.S. court is expected to take place in mid-July.
“The plan that received creditor approval today puts Catalyst on a stronger financial base to compete and adapt as the marketplace for our products continues to change,” Clarke said. “We’re now turning our attention to securing our exit financing and satisfying the remaining conditions of the plan with a target timeline to emerge from creditor protection in the near term.”
Catalyst has also received court approval to extend the period of CCAA protection to Sept. 30.
According to the press release, the firm also received necessary provincial government approval of proposed modifications to its salaried pension plan. The company estimates it will save some $7 million annually with implementation of these modifications following a successful plan of arrangement.