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

 

Just Posted

Rosalind Chapman seeks seat on Port Alberni city council

Community volunteer and longtime Alberni Valley resident Rosalind Chapman will seek a… Continue reading

Accident causes power outage on Beaver Creek Road

One sent to West Coast General Hospital in crash

Inside the music

Big Read: step behind the curtain at the venerable Vancouver Island Music Festival

Save-On-Foods donates to summer kids’ program in Port Alberni

Food bank takes over from breakfast programs once summer vacation starts

West Coast Hockey Prep Camp draws nearly 1,000 players to Port Alberni

History-making Korean hockey coach joins league of celebrity instructors

Here’s what you need to know about Day 2 at the BC Games

From equestrian to volleyball to swimming, all 18 events in full swing here in the Cowichan Valley

B.C. tent city camper arrested for taking coins from fountain

The man, who built a shelter at a Saanich park, says homeless people are unfairly targeted

Ex-Raptor DeMar DeRozan says goodbye to Toronto on Instagram

The guard was traded to the San Antonio Spurs earlier this week for Kawhi Leonard and Danny Green

Okanagan wildfires have potential to become firestorms, says UBC expert

David Andison said to let smaller fires go, to create pockets in the landscape for new forests

2017 wildfires give B.C. mom chance to say thank you to officer who saved her son

An unlikely encounter in the rural community of Likely, near Williams Lake

Organizers of West Coast sport fishing ban troll for attention

Hook-less anglers hitting Sooke area waters July 29 to protest DFO’s summer fin-fish ban

From hot dog to not dog: stuffed toy prompts car break in

Victoria couple said dog toy had been in the backseat for 18 years without problems

VIDEO: Open water swimming from B.C. to Washington in 24 hours

The swim will take a full day, meaning Susan Simmons will be swimming in the black of night

Cigarette packs with graphic images, blunt warnings are effective: focus groups

Warnings considered effective flag ailments smoking can cause, like colorectal and stomach cancers

Most Read