Tag Archives: Catalyst Paper

Catalyst Paper Mill Facility Auction – May 14, 15 & 16. (PRNewsFoto/Rabin Worldwide)

The entire contents of the former Catalyst Paper mill in Snowflake, Arizona will be auctioned off over 3 days this month.

Rabin Worldwide will be conducting the auction on May 14, 15, and 16.

Rabin Worldwide’s President/CEO Richard Reese said, “It is a rarity to have such a wide variety of equipment for sale at an auction. In addition to the specialized paper machinery you would expect at this facility, much of the inventory is applicable to a wide range of industries. Our team of experts have carefully cataloged and grouped every item to make it as easy as possible to preview and bid on the items you want and need.”

The Hackman Capital-led buyer group purchased the assets of the closed Snowflake facility and the shares of Apache Railway for US$13,460,000 and other non-monetary consideration in January of this year.

For more auction information, and the description of the items available, visit:
Rabin Worldwide – Catalyst Paper Mill

Catalyst Paper has posted a net loss of $9.8 million in the first quarter of 2013.

Before specific items, the loss was $11.6 million.

In the previous quarter, the company posted a loss of $35.2 million.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the first quarter were $11.2 million, up from $7.2 million in the final quarter of 2012. Adjusted EBITDA was not impacted by restructuring costs in either quarter.

“The Chinese economic rebound has driven pulp shipments and prices up,” said Catalyst President and CEO Kevin J. Clarke. “But we had much tougher conditions on the paper side of the business, with a 10% drop in North American demand for newsprint and a 15% decrease in directory paper. Labour costs also tipped up due to unforeseen maintenance requirements. The fact that we improved EBITDA indicates how much better positioned we are after last year’s restructuring.”

Crofton

Catalyst Paper reported today that the company’s second quarter maintenance costs will be impacted by a total mill outage at Crofton. The number one paper machine at that operation will remain indefinitely curtailed.

To read Catalyst Paper’s quarterly release, visit:
Catalyst Paper cuts loss despite weak markets

Catalyst Paper’s President and CEO, Kevin J. Clarke, will step down from his position later this spring.

Clarke told the company that with the company’s recent restructuring completed successfully, now is the right time for a leadership transition.

“Kevin steered Catalyst through a pivotal three years and the Board of Directors extends its appreciation to him,” said Chairman Les Lederer. “Under his leadership, the company intensified its focus on stakeholder relationships which culminated in the rapid completion of a reorganization plan that significantly improved Catalyst’s balance sheet and cost structure.

“His printing and publishing industry experience was also helpful in advancing product and market development objectives,” Mr. Lederer said, “and served to put Catalyst on better footing to address the ongoing challenges of the fiercely competitive paper and pulp industry.”

Clarke will continue in his role for an interim period through June 2013 to assist in a smooth transition. He plans to return to his home in New York State, where his family resides. A search for his successor is underway.

Source: Catalyst Paper

Catalyst Paper Corporation has posted a net loss of $35.2 million for the fourth quarter of 2012.

By comparison, Catalyst Paper reported net earnings of $655.7 million in the third quarter, when the one-time gains realized on emergence from creditor protection were booked.

Before specific items, net losses were $15.7 million and $7.5 million in Q4 and Q3 respectively. Adjusted EBITDA was $7.2 million in Q4, with no impact from restructuring costs, and $13.8 million in Q3 ($14.0 million before restructuring costs).

Market conditions were mixed during the fourth quarter, with North American paper demand down from the third quarter for directory and newsprint, and up for coated and uncoated grades. Benchmark prices were up for newsprint and coated and otherwise stable for paper, while there was moderate benchmark price recovery for pulp. A market curtailment at Powell River was necessary over the holidays to balance production with orders, and Catalyst incurred a loss from discontinued operations largely due to an increased estimated pension withdrawal liability associated with the Snowflake closure.

“We saw lower prices for coated and newsprint and weaker demand across our paper product lines in 2012. However, capacity reductions helped mitigate the demand impacts,” said Catalyst President and CEO Kevin J. Clarke. “Pulp prices took a hit as markets weakened in China due to overstocked inventories. These sorts of challenges aren’t going away, but with a better cost structure across all product segments, and continued market share momentum, we’re better positioned to take them on.”

Annual Results

Catalyst Paper is reporting net earnings of $583.2 million for the full 2012 fiscal year.  Earnings were heavily impacted by one-time non-cash restructuring credits and fair value accounting adjustments. This compared with a $974.0 million net loss in 2011 which was driven largely by asset impairment charges.

Read full earnings release

Catalyst Paper has agreed, subject to court approval, to sell its approximately 50% interest in Powell River Energy Inc. and Powell River Energy Limited Partnership to Powell River Energy Trust, a Brookfield Renewable Energy affiliate for $33 million.

Powell River Energy Trust currently holds the other 50% stake in the Powell River Energy joint venture originally established in 2001.

“Sale of this energy asset to our joint venture partner enables a smooth operational transition, maintains reliable electricity supply for our Powell River paper mill under a power purchase agreement and ensures we meet the terms of the plan of arrangement in a timely way,” said President and Chief Executive Officer Kevin J. Clarke. All electricity generated by Powell River Energy will be sold to Catalyst under a power purchase agreement which expires in 2016 with possible extension to 2021 at Catalyst’s discretion.

Pursuant to its plan of arrangement under the Companies’ Creditors Arrangement Act which became effective September 13, 2012, Catalyst is required to sell its stake in Powell River Energy and to distribute to certain unsecured creditors of Catalyst who did not elect to receive shares in Catalyst in settlement of their claims, their pro rata share of 50% of the net proceeds of the sale (which, given that many creditors elected to instead receive shares, will result in a distribution of approximately 40% of the net proceeds of the sale).

The company will offer to purchase a portion of its Floating Rate Senior Secured Notes with the balance of the net proceeds. The sale is expected to complete in the first quarter of 2013 and is subject to various closing conditions. The company expects to apply to the British Columbia Supreme Court for approval of the sale in the next 10 days.

Source: Catalyst Paper

Catalyst Paper has completed the US Court approved sale of the Snowflake assets and shares of Apache Railway.

The Hackman Capital-led buyer group purchased the assets of the closed Snowflake facility and the shares of Apache Railway for US$13,460,000 and other non-monetary consideration.

The transaction received local support from the Town of Snowflake and other interests, based on the buying group’s intention to continue to operate the Apache Railway as a going concern.

“The successful completion of this transaction will assist Catalyst in reducing its interest obligations and improve overall liquidity,” said President and Chief Executive Officer Kevin J. Clarke. “With challenging markets and currency impacts to contend with, we are maintaining tight control of spending on all fronts and making the sale of all remaining non-core assets a priority.”

Aided by the sale of the Snowflake assets and the sale of inventories and realization of accounts receivable associated with the Snowflake closure, Catalyst has been able to repay substantially all of its cash drawings under its ABL facility leaving only customary letters of credit and a minimal cash drawing outstanding under the facility at this point in time.  Drawings under the ABL facility fluctuate with Catalyst’s working capital needs from time to time.

Source: Catalyst Paper

Catalyst Paper Corporation announced that final approval has been received for listing on the Toronto Stock Exchange (TSX) of its new class of common shares created pursuant to its reorganization under the Companies’ Creditors Arrangement Act that completed on September 13, 2012.

The new shares will begin trading on the TSX on January 7, 2013 under the trading symbol “CYT”.

Catalyst also announced that it has initiated a Small Shareholder Selling Program (SSSP). The program gives shareholders of record as of January 3, 2013 holding 99 or fewer new shares the opportunity to sell all of these shares without incurring commission charges thereby minimizing their cost and inconvenience. While the SSSP does not include a mechanism to buy new shares, the TSX listing will provide that opportunity for those who wish to purchase additional new shares.

To learn more, visit:
Catalyst receives final TSX listing approval and initiates program to assist small shareholders (Catalyst Paper)

Catalyst Paper announced that the sale of its Elk Falls site in Campbell River, British Columbia to Pacifica Deep Sea Terminals Incorporated did not close and the sale agreement has been terminated.

The sale of the 400 acre industrial site and adjacent properties was initially expected to close on September 5, 2012.

A non-refundable prepayment of a portion of the purchase price was received and the transaction timeline was extended multiple times up to the ultimate deadline of December 18, 2012.

“It’s disappointing that this transaction with Pacifica could not be completed even with the extended timeline. This is a fully serviced property in an excellent location and we remain confident that the right fit between site and buyer will be found that will bring new jobs and opportunities to Campbell River,” said Kevin J. Clarke, Catalyst President and Chief Executive Officer. “In the meantime, site personnel are maintaining safety, security and environmental requirements and complying with all applicable legislation.”

The former pulp and paper site was indefinitely curtailed in 2009 and closed permanently in 2010. It has since been decommissioned with removal of chemicals, process wastes, and key papermaking equipment. The landfills remain intact as does the wastewater system which continues to operate in preparation for the site’s redevelopment to other industrial uses.

The Elk Falls mill began operation in 1952, and at its peak, produced 784,000 tonnes of pulp, paper and kraft paper annually.

Source: Catalyst Paper

Catalyst Paper has accepted a binding bid from an acquisition vehicle organized by Hackman Capital and its affiliates to purchase the assets of the closed Snowflake facility and the shares of Apache Railway.

The bid is for for US$13,460,000 and other non-monetary consideration.

The binding bid is subject to approval from the US Court.

The buyer intends to continue to operate the Apache Railway as a going concern, and the transaction is supported by the Town of Snowflake and various local interests.

“We are pleased that this transaction has progressed efficiently and that the community’s interests have been considered through the process and in the successful bid,” said Catalyst Paper’s President and Chief Executive Officer Kevin J. Clarke. “While paper manufacturing is part of Snowflake’s past, this transaction puts the asset on a path to a new future that can continue to bring value to the region.”

The winning bid was made at the auction held on December 17, 2012 under the US Court-approved sale and investor solicitation procedures. The sale is expected to complete in the first quarter of 2013 and is subject to various closing conditions.  A hearing in the US Court is scheduled for December 19, 2012 to consider approval of the sale.

Source: Catalyst Paper

Harold Jahn, the developer who is purchasing the mill site of Catalyst Paper‘s former Elk Falls Pulp mill in Campbell River, British Columbia has been served a contamination remediation order in Alberta.

There has been groundwater contamination at the site of a closed chemical plant that Jahn’s company, Heartland Industrial Park Inc., owns.

The company has been ordered to install a groundwater recovery system, develop a decommission plan, and reclaim the plant.  The Government of Alberta said they have been trying to get this issue resolved for 2 years without any success.

The chemical plant has not been in service since 2006, but a functioning groundwater recovery system is required to ensure on-site contaminated groundwater is removed and treated.

The sale of the site in Campbell River to Jahn’s company, Pacifica Deep Sea Terminals Inc., is still in limbo.  The deadline to finalize the deal has been extended indefinitely.  Jahn will not be able to receive permits from the city of Campbell River to develop the Catalyst Paper site until the site has been cleaned up.

Read more:
Catalyst developer nailed by Alberta Environment Ministry (Campbell River Mirror)
OUR VIEW: We deserve some clarity in the murky Catalyst sale (Campbell River Mirror Editorial)