Catalyst tweaks plan in the hopes of another financial-restructuring vote

Crofton mill owner seeks amendments toward new financial restructuring vote that would help workers, pensioners

Catalyst  is making a last-ditch attempt to halt its looming sell-off.

A second vote to help fiscally rescue Crofton pulp mill’s floundering parent firm is being sought from its stakeholders, Catalyst Paper’s agents said Monday.

If the firm can gather enough support of its secured noteholders to move forward with an amended restructuring plan, the company will ask for a court-ordered creditor vote on the amended plan as soon as possible, a firm press release says.

The firm hopes proposed changes to the way the plan addresses the pension and health benefits plans of former salaried employees will be enough to convince creditors to reconsider after they rejected a similar plan May 23 by a three per cent margin.

The company figures it would save some $7 million annually given those modifications, Catalyst says.

The proposal needs approval from Victoria to fly. According to the Catalyst news release, Finance Minister Kevin Falcon is ready to hand his recommended support to Cabinet.

While the amended plan is mulled, Catalyst continues implementing the court-approved sale and investor solicitation process, staff explains.

“Catalyst will suspend the SISP only in the event that the amended plan is approved by its secured and unsecured creditors and approved by the court at a sanction hearing.”