Catalyst Paper Corporation announced today that it has been informed that three of its major shareholders, Mudrick Capital Management, L.P., Cyrus Capital Partners, L.P. and OCM Luxembourg VOF Sarl, a fund indirectly managed by Oaktree Capital (the “Reporting Persons”), have on an individual basis completed Schedule 13D filings with the United States Securities and Exchange Commission disclosing that they are currently engaged in discussions with a third party concerning a potential material strategic transaction involving Catalyst Paper. The Reporting Persons have also reported that there can be no assurance that such discussions will result in the consummation of any such transaction.
Eleventh-hour negotiations have succeeded in keeping about 350 to 400 Resolute Forest Product forestry workers in Thunder Bay and Ignace on the job.
Bruce Frost, third vice-president business rep for the United Steelworkers Local 1-2010, on Monday said the union reached a deal with the company on a new contract, which workers overwhelmingly accepted.
“We sat down with the mediator and the company last Tuesday and we worked out a deal that was ratified by the crews in both Ignace and Thunder Bay on the weekend and it was accepted by 83 per cent,” Frost said.
“It’s a pretty good deal. It gives us back some of the stuff we conceded in previous agreements when Abitibi-Bowater was in trouble. So we’ve gained back some of those concessions, as well as an eight per cent wage increase over the term (of the contract).”
The deal is for four years.