Catalyst restructuring vote coming May 15

A crucial creditor meeting date concerning Crofton paper mill’s parent firm has been set back two weeks to May 15.

A crucial creditor meeting date concerning Crofton paper mill’s parent firm is now slated for May 15, a Catalyst spokeswoman has confirmed.

The creditor and shareholder vote date was previously this Wednesday [May 2].

“This change gives us a bit more time to work through the feedback from trade creditors and noteholders on the restructuring plan of arrangement,” Lyn Brown e-mailed the Cowichan News Leader Pictorial.

“There are a lot of factors and interests involved, and we surely want to take the necessary time to consider all input thoroughly in our effort to reach a consensual deal.”

The court date to approve the complex financial plan of arrangement is now set for May 18, Brown noted.

Catalyst’s debt restructuring will affect hundreds of retired and active, union and non-union Crofton workers.

It will also impact folks working at the foundering company’s other operations also struggling with rising production costs, foreign competition, plus slumping pulp-and-paper markets.

To enable a smooth restructuring, Catalyst and its operating subsidiaries obtained an initial order from the Supreme Court of B.C. for protection under the Companies’ Creditors Arrangement Act.