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.
Contact Norman L. Pernick and Nicholas J. Brannick for more information.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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