New Delaware Chapter 15 Filing – Catalyst Paper Corporation
Catalyst Paper Corporation and thirteen of its affiliates and subsidiaries filed petitions for relief this morning under Chapter 15 of the Bankruptcy Code (Case No. 16-12419). The Debtors are seeking recognition of a foreign main proceeding already ongoing before the Supreme Court of British Columbia. According to the First Day Declaration, the Debtors are examining two possible restructuring options: an acquisition by Kejriwal Group International or Recapitalization Transaction. A majority of the holders of Catalyst’s outstanding common shares and secured noteholders have entered into support agreements for each option. The Debtors’ U.S. assets include two paper mills in Wisconsin and Maine, poplar lands in Washington state and various support centers across the United States. A motion for joint administration of the Debtors’ Chapter 15 cases is pending. The Honorable Christopher S. Sontchi has been assigned to the cases.
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