Catalyst Paper shareholders support sale to KGI

Kejriwal Group International and Catalyst’s four majority security holders have entered into a support agreement.

It is not yet known how the Catalyst sale will affect the Port Alberni mill.

Catalyst Paper’s four principal shareholders have agreed to support the company’s acquisition by Kejriwal Group International of Mumbai, India.

Whether the sale goes forward or not, it is unclear how the transaction will affect Port Alberni’s paper mill.

The support agreement, announced at the end of June on Catalyst’s website, is conditional on satisfactory due diligence by KGI as well as refinancing arrangements on the sellers’ part, the press release reads.

The four principal shareholders (or security holders) are Mudrick Capital Management, L.P., Cyrus Capital Partners, LP, Oaktree Capital Management, LP and Stonehill Capital Management LLC. Collectively, the four companies own 79 per cent of the shares.

“They’ve entered into this agreement, subject to these conditions being met, they’re going to vote in favour of the proposed transaction which would see KGI acquire Catalyst Paper,” said Eduarda Hodgins, director of organization development and communications at Catalyst.

The deal was reached between the four principal security holders and KGI. Catalyst Paper has not been involved in the discussions nor the agreement.

However, “the board of directors is encouraged by KGI’s proposal and will be pleased to review and evaluate the proposed transaction and the process contemplated by the support agreement.”

According to Hodgins, it’s unknown whether or not the potential sale will affect operations at the Port Alberni paper mill. There is also no guarantee that the deal will go through, she added.

The deadline for the deal is Nov. 30, 2016, although extensions are permitted.

reporter@albernivalleynews.com

facebook.com/albernivalleynews.com

twitter.com/alberninews

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Qualicum Beach man arrested over racist incident at Tseshaht First Nation

Port Alberni RCMP said the man turned himself in

Tla-o-qui-aht First Nation woman, 26, fatally shot by police in Edmundston, N.B.

Police were conducting a well-being check at the time of the incident

BCHL: Bulldogs trade veteran defenceman, acquire new players during offseason

Grayson Valente suited up for three seasons with the Alberni Valley Bulldogs

ARTS AROUND: Rollin Art Centre garden opening June 16

Virtual art exhibits and gift shop to come

A LOOK BACK: maritime history of Alberni Inlet

Take a peek at Alberni Valley history with Alberni Valley Museum

March dental conference key to many of B.C.’s COVID-19 cases

Early infections from China, Iran were quickly contained

An ongoing updated list of Alberni Valley events affected by COVID-19

Has your event been cancelled or postponed? Check here

Cortes Island affordable housing project hangs by a thread

Regional decision makers resort to COVID-19 concerns despite virtual meeting option and push hearing to September

MAP: Dr. Henry reveals which B.C. regions have seen most COVID-19 cases

B.C. health officials release a first look at how the novel coronavirus has reached all corners of the province

North Island recreation camping site closed due to vandalism

Damage happens every year, forcing site manager to reallocate improvement budget to repairs

Seniors to receive up to $500 in promised COVID-19 emergency aid in early July

The Liberal government first promised the extra help in mid-May, but had to create a new system to deliver the aid

VIDEO: Revelstoke bear wanders into Animal House pet store

Staff got ready to chase it out with a broom

Man found dead in his tent at Island homeless camp

Facebook posts tell of personal struggles and attempts to stay clean and sober

New study is first full list of species that only exist in Canada

Almost 40 per cent of them are critically imperilled or imperilled and eight are already extinct

Most Read