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.
Paper Excellence Canada (PEC) is today announcing it has entered into an agreement to acquire Catalyst Paper Corporation, including its three facilities located in Crofton, Port Alberni and Powell River, its Surrey distribution centre and headquarters in Richmond, BC. This agreement is subject to regulatory review and approvals.
Catalyst Paper manufactures 1.3 million tonnes of pulp and paper products. These products include industrial packaging, food service, coated ground-wood, newsprint and directory papers. Customers include retailers, publishers and commercial printers in North America, Latin America, the Pacific Rim and Europe.
Paper Excellence has evolved from a new entrant as an exporter within the value-added natural resources (pulp) industry to being among one of Canada’s largest pulp producers.
“For months we’ve been working hard to secure the 1,500 jobs and pensions of Catalyst workers in Crofton, Port Alberni, and Powell River. Today’s announcement by Paper Excellence is another welcome vote of confidence in B.C. and most of all – the people who add value to our natural forest resources,” said B.C. Premier John Horgan.
“Paper Excellence is evolving into a major player within Canada’s forest industry”, states Brian Baarda, Paper Excellence Chief Executive Officer. “This announcement is a continued step towards Paper Excellence’s long-term growth plan within Canada and the province. With this acquisition, Paper Excellence is clearly demonstrating its commitment to British Columbia”.