The Canadian company Catalyst Paper has failed for creditor protection under the Companies' Creditor Arrangement Act (CCAA) after failing to reach a deal with a union at its Crofton mill, reports Pulp&Paper Canada.
Catalyst Paper has pulp and paper mills at Crofton, Port Alberni, and Powell River in B.C., and a recycled paper mill in Arizona.
It is estimated that Catalyst has $810 million of debt. JP Morgan has agreed to provide debtor-in possession (DIP) financing to Catalyst.
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