Catalyst Paper has a $73.5 million deficit in their pension plan
Catalyst Paper has a $73.5 million shortfall in its pension plan.
If the company’s restructuring plan fails, Catalyst Paper’s 1,200 pensioners and employees will lose about 30% of their pensions.
Currently, the principal creditors of Catalyst Paper have until April 23 to agree on a restructuring plan. If they can not agree to a restructuring plan, Catalyst Paper will accept an already-negotiated “stalking horse bid” from its secured bondholders to buy the company.
The stalking horse bid specifically excludes the pension plan. That means the pension plan would have to be wound up and liquidated. If the pension plan continues as a going concern, and continues to be funded by the company, then maintaining the pension payouts should not be a problem.
Read more from The Vancouver Sun – Pensions for up to 1,200 at risk if Catalyst restructuring bid derails
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