British Columbia-based Catalyst Paper (f/k/a NorskeCanada) and 13 affiliated Debtors filed for Chapter 15 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case 16-12419. The Company, which produces and sells mechanical printing papers and newsprints, is represented by Edmon L. Morton of Young Conaway Stargatt & Taylor.
The Company concurrently announced that it has entered into a support agreement with security holders representing about 70% of its outstanding common shares and 87% of its 11% PIK Toggle Senior Secured Notes.
Key components of the alternative recapitalization plan contemplated in the support agreement include the following: (1) Conversion of the notes, including accrued and unpaid interest until November 1, 2016, into (i) a term loan in the principal amount of $135 million with a maturity five years from the issuance date and 12% interest to be PIK during year one, with the possibility thereafter of partial PIK at the Company’s option, and (ii) common shares of the Company representing 95% of the outstanding number thereof after giving effect to such conversion. (2) conversion to equity of the interest that is scheduled to be paid on the notes on November 1, 2016,and the deferral of any payment of interest accruing subsequent to November 1, 2016 on the notes until implementation of the alternative recapitalization plan, at which time such accrued interest will be added to the principal amount of the term loan.
Joe Nemeth, president and C.E.O. of Catalyst Paper, comments, “The agreement with our principal noteholders confirms the support for a transaction that will improve the financial position of Catalyst.” The Company made a previous Chapter 15 filing in January 2012. Catalyst Paper recently reported $687 million in assets.
Read more international bankruptcy news.
The post Catalyst Paper Chapter 15 Petition Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.