Tree Frog Forestry News

Daily Archives: February 1, 2012

Business & Politics

Catalyst Paper receives $175 million in financing, creditor protection

Canadian Press
February 1, 2012
Category: Business & Politics
Region: Canada

RICHMOND, B.C. – Pulp and paper producer Catalyst Paper Corp. (TSX:CTL) has secured up to $175 million in financing as it moves forward with restructuring under court protection from creditors.  The struggling company said late Tuesday that JP Morgan agreed to provide debtor-in-possession financing during the CCAA process.  Catalyst also received an initial order from the B.C. Supreme Court for creditor protection, expiring expiring Feb. 14. The period will be extended as the court sees fit, the Vancouver-area company said.  Early Wednesday, the Toronto Stock Exchange announced it is suspending trading in the company’s stock immediately and is reviewing whether the stock should be delisted from Canada’s senior market.

Read More

Forestry: Industry ‘survivors’ see profits ahead

Montreal Gazette
February 1, 2012
Category: Business & Politics
Region: Canada

MONTREAL – After a decade of pain, hundreds of mill closings and the loss of about 100,000 jobs, Canada’s forestry sector is getting back on its feet, an industry leader says. “Here we are, the survivors,” Avrim Lazar, CEO of the Forest Products Association of Canada, told a gathering in Montreal on Tuesday. When Lazar took over the helm of FPAC in 2002, the sector’s annual showcase event, PaperWeek International, attracted more than 10,000 participants. On Tuesday, he was speaking to fewer than 400 people registered at PaperWeek Canada 2012. Lazar, who is poised to retire soon, summed up industry prospects in a state-of-the-industry address that also sounded like a sign-off.

Read More

Sino report can’t refute many fraud allegations

by Peter Koven
National Post
February 1, 2012
Category: Business & Politics
Region: Canada

The independent committee of scandal-plagued Sino-Forest Corp. has delivered its final report, but has failed to refute key allegations of fraud against the company.  Investors hoped that the report, released late Tuesday, would conclusively determine what happened at the beleaguered Chinese forestry firm. Instead, the committee acknowledged that it was unable to unwind all of the company’s complex third-party relationships to determine if they were improper. It said that much of the needed information lies with “non-compellable third parties, may not exist or is apparently not retrievable from the records of the company.”  The committee did conduct some work that determined Sino’s stated tree ownership in two separate regions was within 6% of the “net stocked area forest cover.”

Read More

Sino-Forest Releases Final Report of the Independent Committee

By SINO-FOREST CORP
4-traders (press release)
January 31, 2012
Category: Business & Politics
Region: Canada

TORONTO, CANADA – Sino-Forest Corporation today announced that it is publicly releasing the Final Report of the Independent Committee of the Company’s Board of Directors (the “IC”). Establishment of the Independent Committee On June 2, 2011, in response to a report issued by Muddy Waters, LLC, the Board of Directors appointed a committee of independent directors to examine the allegations in the MW Report, and report back to the Board of Directors. 

Read More

Sino-Forest hit with new suit

BY PETER KOVEN
Financial Post
February 1, 2012
Category: Business & Politics
Region: Canada

Beleaguered forestry firm Sino-Forest Corp. has been slapped with a new class action lawsuit out of the United States that accuses it of multiple acts of fraud. The case, which was filed by Cohen Milstein Sellers & Toll PLLC, is targeting potential plaintiffs who bought Sino-Forest shares on the over-the-counter (OTC) market in the United States. In addition to the company itself, the defendants include senior management, auditor Ernst & Young LLP, and underwriters Bank of America and Credit Suisse. Sino has already been sued multiple times in Canada, and earlier this month, an Ontario judge awarded “carriage” of the Sino class action litigation to Siskinds LLP and Koskie Minsky LLP.

Read More

Sino-Forest’s independent investigation ends without definitive conclusions

By ANDY HOFFMAN AND TIM KILADZE
Globe and Mail
February 1, 2012
Category: Business & Politics
Region: Canada

After a seven month investigation costing more than $35-million, an independent committee probing fraud allegations against Sino-Forest Corp. has failed to provide definitive answers about the Chinese timber company’s business practices and accounting. The committee has, however, identified at least two timber purchases that appear to be undisclosed related-party transactions conducted by what was once the most valuable forestry company on the Toronto Stock Exchange.

Read More

The Conservatives’ uneasy policy shift on China

By John Ivison
National Post
February 1, 2012
Category: Business & Politics
Region: Canada

The Prime Minister travels to Beijing early next week, where he will be received much more warmly than in the days when the Conservatives were the party of principled opposition to the Chinese government’s more oppressive excesses. Back in Opposition in 2005, now-Immigration Minister Jason Kenney stood in Beijing and called China a “totalitarian one-party state. “It continues to have forced labour camps. It continues to deny freedom of religion and freedom of expression,” he said.

Read More

Bowater cuts pulpwood pay by 10%

CBC News
January 31, 2012
Category: Business & Politics
Region: Canada

The Bowater Mersey paper mill has imposed a ten per cent cut in the price it pays for wood harvested from private lands. Andrew Fedora, the executive director of the Federation of Nova Scotia Woodlot Owners, said the price cut was effective Monday — from $36 a tonne to $32.50 a tonne. “We’ve seen a drop in pulpwood by roughly 10 per cent,” Fedora told CBC News on Tuesday.

Read More

Spark from fuse likely ignited 2011 Babine sawmill fire

Prince George Citizen
February 1, 2012
Category: Business & Politics
Region: Canada, Canada West

The BC Safety Authority (BCFA) released a report Tuesday into the cause of a fire that erupted at Babine Forest Products nearly a year ago, but downplayed any link between that blaze and the one that destroyed most of the facility and killed two workers on Jan. 20.  BCFA safety manager Stephen Hinde said an investigation into the latest explosion and fire remains ongoing. The BCFA oversees safety for installation and use of such technical equipment as electrical systems, gas, boiler and pressure vessels and refrigeration systems.  On Feb. 23, 2011, a fire broke out beneath the mill’s electrical room at 10:35 p.m. Workers quickly extinguished the blaze and no one was injured, but it caused $500,000 damage.

Read More

Catalyst woes may threaten pensions after company files for creditor protection

Alberni Valley Times
February 1, 2012
Category: Business & Politics
Region: Canada, Canada West

Retired Port Alberni mill workers who agreed to bridging pensions in good faith could see those funds vanish in the swirling vortex of Catalyst Paper’s financial woes, a local official contends.  The B.C. forest industry suffered another blow yesterday when Catalyst Paper Corporation officials announced the company is filing for creditor protection.  The terms and conditions of the restructuring plan have not yet been determined.

Read More

Hampton optimistic about the future of Burns Lake’s Babine Forest Products

Burns Lake Lakes District News
February 1, 2012
Category: Business & Politics
Region: Canada, Canada West

Steve Zika, Hampton Affiliates chief executive officer said to Lakes District News last week that he remains optimistic that Babine Forest Products will be rebuilt.  Hampton Affiliates owns a majority share in the local mill that was devastated by an explosion and fire on Jan. 20, 2012.  Zika said to Lakes District News that the mill is insured for its replacement cost and while Zika said he can’t elaborate on the details of the insurance policy, he said that generally the policy covers the cost of rebuilding the mill or alternatively a [cash] payout.  He said the insurance company’s assessors arrived in Burns Lake last week, but he added that he is unsure of how much access to the site they have at this point. He said Worksafe B.C. have control over the site.

Read More

Sawdust ignited costly fire last year at BC sawmill destroyed by explosion

The Tyee
January 31, 2012
Category: Business & Politics
Region: Canada, Canada West

VANCOUVER – Two separate safety monitoring agencies flagged sawdust as a concern at a northern British Columbia sawmill that exploded, but it doesn’t appear they shared the information about the potential hazard. Dry dust particles played a role in igniting and fuelling an electrical fire that resulted in a half million dollars worth of damage last February at Babine Forest Products in Burns Lake, west of Prince George, the B.C. Safety Authority said in an incident report.

Read More

Investigators say Burns Lake sawmill blaze unlikely to be linked to earlier fire

The Province
January 31, 2012
Category: Business & Politics
Region: Canada, Canada West

The explosion that levelled the Burns Lake sawmill two weeks ago, killing two and injuring 19, is not likely related to a Feb. 2011 fire at the mill, which caused $500, 000 worth of damage, according to the B.C. Safety Authority. In an incident report released Tuesday, the BCSA had concluded that the Feb. 23, 2011 electrical fire was most likely caused by a fuse failure in a bandsaw switch, which resulted in a small explosion that ignited “unusually” dry saw dust.

Read More

No test for explosive risk made after earlier blast at Burns Lake mill

Globe and Mail
January 31, 2012
Category: Business & Politics
Region: Canada, Canada West

The Burns Lake sawmill leveled by a massive fiery blast on Jan. 20 was the site of a sawdust-fuelled explosion nearly a year earlier, but WorkSafe BC officials did not test for explosive risk during a November inspection that found unhealthy concentrations of airborne sawdust. WorkSafe BC officials say they were aware of a report from the B.C. Safety Authority that was released on Tuesday containing the details of the February, 2011, incident at the Babine Forest Products mill. The report said the buildup of unusually dry sawdust in and on equipment fed a small dust explosion, which in turn set sawdust on the floor ablaze. The explosion was triggered by a faulty switch for a band saw motor.

Read More

Burns Lake sawmill fires not likely linked

CBC News
January 31, 2012
Category: Business & Politics
Region: Canada, Canada West

The BC Safety Authority says a fire last year at a Burns Lake, B.C., sawmill is not likely linked to the fatal fire that destroyed the mill earlier this month. BCSA spokesperson Stephen Hinde says a February 2011 fire at Babine Forest Products was probably caused by an electrical malfunction, which caused an electrical switch to spark, igniting sawdust.

Read More

Fortress aims to rescue Domtar mill

Financial Post
February 1, 2012
Category: Business & Politics
Region: Canada East, Canada

MONTREAL . When Vancouver paper mogul Chad Wasilenkoff bought the Thurso pulp mill on the banks of the Ottawa River from bankrupt Fraser Papers two years ago, a worker there embraced him and expressed his gratitude for keeping the operation going.  Now Mr. Wasilenkoff has saved another Quebec pulp mill from death by bulldozer. Cue the hugs.  Fortress Paper Inc., the specialty papermaker Mr. Wasilenkoff founded and leads as chief executive, is buying Domtar Inc.’s mothballed Lebel-sur-Quévillon pulp mill in Quebec’s Abitibi region. A Domtar official said Fortress was the only bidder who didn’t want to tear the mill down.

Read More

Jobs being cut at Corner Brook mill

The Western Star
February 1, 2012
Category: Business & Politics
Region: Canada East, Canada

Meetings are still happening but word is that job cuts are being announced at Corner Brook Pulp and Paper this morning. Meetings between the company and unionized workers at Corner Brook Pulp and Paper have started, but word is coming out already that some jobs are being cut.  Sources have told The Western Star that the first union to be called in for a meeting Wednesday morning was informed some jobs under its umbrella will be removed from the operation.

Read More

Survey Provides Snapshot of US Pallet Industry

Pallet Enterprise
February 1, 2012
Category: Business & Politics
Region: United States

Having experienced a number of ups and down over the recent years, the pallet industry has been in flux with the move of the overall economy. Seeking to get a snapshot of the current state of the industry, researchers from Virginia Tech have conducted an industry survey. It aimed to foster increased understanding of the U.S. wooden pallet industry and its supply chain. This survey was completed last summer and included a mail survey of about 1,500 wood pallet manufacturers and recyclers. 

Read More

Florence man content running one-man sawmill after 30 years

Ravalli Republic
January 31, 2012
Category: Business & Politics
Region: United States, US West

FLORENCE – In this day and age when the technology train is moving faster than most can keep up with, there are still a few hardy souls who choose not to climb aboard. Just east of busy U.S. Highway 93 on the northern outskirts of the little town of Florence, there’s such a man. …For more than 30 years, Finlay has been operating his family-run, rough-cut lumber mill in this spot in much the same way that his father operated it before him. …His 1930s-vintage circular sawmill is parked under a well-aged canopy of boards cut years ago from trees harvested in the Bitterroot Valley. It hasn’t moved an inch since Finlay bought this piece of ground in the 1980s and moved his mill in from the woods.

Read More

Bryan Green to visit woodchip buyers in Asia

ABC N
February 1, 2012
Category: Business & Politics
Region: US East, International

The Tasmanian Premier has revealed her Deputy, Bryan Green, will fly to Japan and China to drum up markets for native woodchips.  Lara Giddings’ announcement trumped an invitation from the Liberal leader, Will Hodgman, for her to join him on an urgent trade mission to rebuild the timber industry.  Mr Hodgman says other states have no trouble selling native woodchips.  “There is a real political issue here. The Greens have trashed our markets and I want to join with the Premier and rebuild them.”

Read More

Workers fight sawmill shutdown

ABC News, Australia
February 1, 2012
Category: Business & Politics
Region: International

Sawmiller McKay’s Timber will face an emergency industrial hearing into what the forestry union is calling a breach of the company’s workforce agreement.  McKay’s Timber has stood down 30 workers from its Bridgewater and St Helens mills after Artec shut down its Bell Bay woodchip mill for a month.  The closure means there is no outlet for McKay’s woodchips.  The forestry union applied for Fair Work Australia intervention because it says the company failed to consult workers before standing them down.

Read More

China is Now the World’s Largest Importer of Softwood Lumber and Logs

By Wood Resources International 
MarketWatch (press release)
January 31, 2012
Category: Business & Politics
Region: International

SEATTLE — Reduced activities in the housing construction sector in China decreased importation of softwood logs and lumber in late 2011, reports the Wood Resource Quarterly. Despite the decline in the 4Q, total imports during 2011 reached a record high, making China the largest importer of logs and lumber in the world. Importation of softwood logs and lumber to China has increased continuously over the past 15 years, and in 2011 the country was the largest importer of softwood lumber and logs in the world, according to the Wood Resource Quarterly. 

Read More

Wood, Paper & Green Building

Ford to use kenaf plant inside doors of new Escape, saving weight and energy

National Post
February 1, 2012
Category: Wood, Paper & Green Building
Region: Canada, United States

As part of its overall effort to make vehicles more sustainable, Ford is making the material inside the door — known as the bolster — in part from kenaf. Kenaf is a tropical plant that looks similar to bamboo and is related to cotton. The plant replaces oil-based materials inside the doors of the Escape. …“Kenaf and the other renewable materials in the Escape have made the vehicle more environmentally friendly and fuel efficient,” says Laura Sinclair, materials engineer for the Escape.

Read More

Central Park

WOOD-FRAME WONDER
Vancouver Courier
February 1, 2012
Category: Wood, Paper & Green Building
Region: Canada, Canada West

The Hillcrest Aquatic Centre has … [a] claim to fame. The aquatic centre at Hillcrest Park was recently recognized with a citation for innovative wood design for “creative and appropriate use of wood materials and the overall aesthetic appeal of this civic recreation facility.” Vancouver architectural firm Hughes Condon Marler Architects was recognized for its use of wood in the design at the 2011 North American Wood Design Awards, sponsored by Wood Design & Building Magazine published by the Canadian Wood Council. Hughes Condon Marler Architects also received a Wood Works! Design award earlier last year for its use of wood as the primary structural and envelope element of the aquatic centre. The Wood Works! Awards program is an initiative of the Canadian Wood Council.

Read More

Forestry

Community split over proposed mill relocation

Prince George Citizen
January 30, 2012
Category: Forestry
Region: Canada, Canada West

Crescent Spur residents are divided over a proposal to relocate a small sawmill in the rural community, 160 kilometres east of Prince George. Tourism operators in the tiny community say the noise and traffic to the mill, which employs eight people, will drive away clients seeking wilderness experiences. Ornithologist RIck Zammuto has lived in the area for 25 years with his wife, Julie. In addition to disrupting his research, Zammuto said, the proposed saw mill location would impact the bird watching and ecotourism tours the couple offer. “I bring busloads of school groups and tourists out here to hear the birds,” he said.

Read More

Slight increase to cut for Tree Farm Licence 41

Ministry of Forests, Lands and Natural Resource Operations (press release)
January 31, 2012
Category: Forestry
Region: Canada, Canada West

VICTORIA – The allowable annual cut for Tree Farm Licence 41 increases slightly by four per cent to 128,000 cubic metres effective immediately, chief forester Jim Snetsinger announced today. Tree farm licence 41, owned by Skeena Sawmills Ltd. is about 40 kilometres south of Terrace and covers 201,939 hectares, with 31,558 hectares suitable for timber harvesting. The majority of the forest is coastal western hemlock.

Read More

Alberta launches legal action against logging protesters

The Tyee
January 31, 2012
Category: Forestry
Region: Canada, Canada West

Government enforcement actions against citizens opposed to logging in a world famous Alberta watershed will likely cost taxpayers more money than total timber revenue. “This is clearly an example of government waste,” says Gord Petersen, a local resident and member of the ad hoc Stop the Castle Logging Group. “The Alberta government has responded with a massive enforcement effort against mostly senior citizens trying to respect water and wildlife,” adds Petersen.

Read More

Forests: the Crown takes a haircut

Dan Leger: Journalism and More
January 28, 2012
Category: Forestry
Region: Canada East, Canada

I know I’m not obliged to break stories any more, since I’m no longer a working journalist. At least, not the kind with a regular job. But when I hear news, I will share it. It’s only the proper thing to do.  I am reliably informed that the Dexter government is about to announce a cut in the fees governments charge to log on Crown land. The proposal is for a 30 per cent cut, which would amount to a cost to taxpayers of about $2 million a year. A document has gone to the appropriate ministers for approval, but it is considered a done deal.  This isn’t huge money, but it demonstrates how the province is leaving no stone unturned trying to find ways to salvage what is left of the paper industry around these parts.

Read More

Quebec’s Plan Nord draws opposition: critics, conservationists want debate on $80-billion project

Montreal Gazette
January 31, 2012
Category: Forestry
Region: Canada East, Canada

The debate over Quebec’s Plan Nord came to Montreal Monday, where a provincial cabinet minister defended the plan from accusations it is little more than a marketing strategy aimed at selling off the province’s natural resources at a discount to foreign companies. The Plan Nord is Quebec’s vision for the future development of more than 70 per cent of the province. Under the plan, announced last May, more than $80 billion in public and private money is to be invested in the region over the next 25 years in energy development, forestry, mining, transportation and tourism.

Read More

New Forest Planning Rule Seeks to Restore the Nation s Forests through Science …

By U.S. Forest Service
Political News.me (press release)
February 1, 2012
Category: Forestry
Region: United States

WASHINGTON, —Agriculture Secretary Tom Vilsack signaled the U.S. Department of Agriculture’s intent to issue a new planning rule for America’s 193-million acre National Forest System that seeks to deliver stronger protections for forests, water, and wildlife while supporting the economic vitality of our rural communities, by releasing online a Final Programmatic Environmental Impact Statement (PEIS) for the National Forest System Land Management Planning Rule. Today’s action honors the commitment made by Secretary Vilsack in his 2009 speech on forest management, and by the President in the America’s Great Outdoors Report.

Read More

Pythons are eating all the Everglades’ animals

Ottawa Citizen
January 31, 2012
Category: Forestry
Region: US East, United States

A slithering, surging population of Burmese pythons in the Florida Everglades, many of them escaped or abandoned pets, appears to be eating its way through many animals native to the sensitive wetlands, according to a study. Researchers writing in the Proceedings of the National Academy of Science found what they characterized as “severe declines” in the population of small and mid-sized native mammals in the huge national park and linked it to the growing presence of Burmese pythons. The study, the first to document the ecological effects of the invasive species on the Everglades, was released on Monda

Read More

Lawmakers back restoring forestry jobs

Baxter Bulletin
February 1, 2012
Category: Forestry
Region: US East, United States

LITTLE ROCK (AP) — A legislative panel voted Tuesday to restore 20 firefighting jobs to the financially troubled Arkansas Forestry Commission, but it remains unclear how lawmakers plan to pay for the positions. The Joint Budget Committee voted to include the proposal in the commission’s proposed budget bill being drafted for the fiscal year that begins July 1. The commission laid off 34 employees earlier this month to close a $4 million shortfall.

Read More

Carbon, Climate & Bioenergy

Is Canada’s energy strategy short-sighted?

iPolitics
January 31, 2012
Category: Carbon, Climate & Bioenergy
Region: Canada

Two important speeches, delivered within days of each other last week, provide an interesting contrast in approaches to the critical issue of energy. What they tell us about how we deal with energy points to some important choices and tradeoffs we face as a country. First, Prime Minister Harper’s address to the global economic and political hoi polloi at Davos offered to audiences a message now familiar to Canadians: It will be a ”national priority to ensure we have the capacity to export our energy products beyond the United States and specifically to Asia”.  

Read More

Scientists Challenging Climate Science Appear to Flunk Climate Economics

New York Times (blog)
January 31, 2012
Category: Carbon, Climate & Bioenergy
Region: United States

An op-ed article signed by 16 scientists rejecting the need for “drastic action to decarbonize the world’s economy,” published Friday by the editorial page of The Wall Street Journal, has been widely and thoroughly fact-checked and challenged elsewhere. The Journal has published a rebuttal op-ed piece from a long list of climate scientists under the headlin “Check With Climate Scientists for Views on Climate.” Peter Frumhoff of the Union of Concerned Scientists criticizes their take on the science in a piece titled, “Dismal Science at The Wall Street Journal.”

Read More

Georgians on the hook for failed ethanol facility

Atlanta Journal Constitution
February 1, 2012
Category: Carbon, Climate & Bioenergy
Region: US East, United States

Range Fuels, the failed wood-to-ethanol factory in southeastern Georgia that cost taxpayers $70 million, was sold Tuesday for pennies on the dollar. Its buyer is a company that is backed by the same man who bankrolled and helped secure government loans for Range Fuels before it went bust last year. California entrepreneur Vinod Khosla is the main financial backer of LanzaTech, the New Zealand-based biofuel company that paid $5.1 million Tuesday for the plant in Soperton.

Read More

Giving ethanol a good name: Advocates tout increase in production, jobs for state

Wisconsin State Journal
January 31, 2012
Category: Carbon, Climate & Bioenergy
Region: US East, United States

MONROE — Eric Huschitt is tired of the bad rap that plagues the ethanol industry.
For instance, the general manager and vice president of operations at Badger State Ethanol that sits on the edge of Monroe is aware that the expiration of the federal ethanol tax credit at the end of 2011 was one of those rare subjects that liberals and conservatives came together to support. “Who got that tax credit?” Huschitt asked before answering that the companies that blend the corn-based ethanol with gasoline received that 45-cents-a-gallon tax credit. Ethanol production plants like Badger State didn’t get a dime.

Read More

UPM-KYMMENE OY : UPM to build the world’s first biorefinery producing wood …

By UPM-Kymmene Corporation
4-traders (press release)
February 1, 2012
Category: Carbon, Climate & Bioenergy
Region: International

Helsinki – UPM is to invest in a biorefinery producing biofuels from crude tall oil in Lappeenranta, Finland. The industrial scale investment is the first of its kind globally. The biorefinery will produce annually approximately 100,000 tonnes of advanced second generation biodiesel for transport. Construction of the biorefinery will begin in the summer of 2012 at UPM’s Kaukas mill site and be completed in 2014. UPM’s total investment will amount to approximately EUR 150 million. “The biofuels business has excellent growth potential. The quality of our end product and its environmental characteristics has gained significant interest among a wide range of customers, and the investment is profitable. Lappeenranta is the first step on UPM’s way in becoming a significant producer of advanced second generation biofuels. This is also a focal part in the realisation of our Biofore strategy”, says UPM President and CEO Jussi Pesonen.

Read More

Lithuania maximising use of logging waste for biofuel production

The Baltic Course
February 1, 2012
Category: Carbon, Climate & Bioenergy
Region: International

In an effort to maximise the use of logging waste for biofuels in Lithuania, in the National Forestry Sector Development Programme submitted to the Government, the Ministry of Environment suggests boosting the volumes of this waste prepared for use approximately six times, from 80,000 cubic metres to 500,000 cubic metres per year, the Ministry of Environment said. According to available research data, such an amount of this waste can be taken from Lithuanian forests without damage to their ecosystems. Once the government has approved this programme, specific programme implementation measures will be planned for both state and private forests, reports LETA/ELTA.

Read More

Climate Change and Forest Fires Conference

Jerusalem Post
February 1, 2012
Category: Carbon, Climate & Bioenergy
Region: International

On Thursday, January 26, scientists and foresters participating in the Climate Change and Forest Fires Conference organized by KKL-JNF, in cooperation with the Ministry of Environmental Protection, visited the Carmel Forest. KKL-JNF Chief Forester David Brand welcomed the participants, many who came from around the world, and provided professional background information during the tour.

Read More

General

Catalyst Paper edges closer to court-ordered creditor protection

Workers at Crofton mill reject new contract, key to company’s plan to restructure $810 million in debt
Victoria Times Colonist
January 31, 2012
Category: Uncategorized

CatalystCatalyst Paper said it is seeking court-ordered creditor protection Tuesday after workers at its Crofton pulp and paper mill rejected a new labour contract that was key to a voluntary restructuring plan. Catalyst, the largest pulp and paper company on the Coast, is seeking an order through the B.C. Supreme Court to commence proceedings under the Companies’ Creditors Arrangement Act. By pursuing restructuring under the CCAA, Catalyst is putting all its obligations, from debts to labour contracts and pension arrangements, into a restructuring process with an uncertain outcome, analyst Kevin Mason, of ERA Forest Products Research said in an interview.

Read More