Up front: Locals puzzled about notoriety given pole dance for kids page A3 News: Cowichan pushes bid to bring international hockey tourney page A5 For all the news of the Cowichan region as it happens, plus stories from around British Columbia, go to our website www.cowichannewsleader.com Your news leader since 1905
Friday, September 14, 2012
Catalyst back on safe ground Crofton Mill: Company out of creditor protection and eager to get back to growing its business Peter W. Rusland
News Leader Pictorial
C
rofton’s pulp-mill’s parent ¿rm is out of creditor protection after a successful ¿nancial reorganization, Catalyst’s brass said Thursday. CEO Kevin Clarke was happy with Catalyst’s reduced debt, interest and annual expenses. He also cheered Crofton’s unionized workers who inked a new labour deal, and North Cowichan council for helping his company weather recent ¿nancial storms. Clarke declined to say if Catalyst will seek more tax relief from council after its hefty spring property-tax shift to homeowners from its biggest tax-and-job engine. “We’ve always wanted to pay our fair share,” he told the News Leader Pictorial of Crofton mill employing about 600. “We’ll be looking for a continuation in innovation related to reducing costs and providing value. We’re looking at how to reduce and increase “We’re looking for hydro delivery of services. ways to improve “It’s been a very dif¿ cult process.” and hire another Dif¿cult too for 40 to 50 employees North Cowichan councillors, who faced in Crofton.” the unpopular tax shift. “I’m glad to hear Catalyst’s CEO is happy with the decision council made on the tax shift, but I’m not so sure residents are as happy,” said Councillor John Koury. “I hope (Catalyst) takes advantage of decisions we made, and reinvests in our community to create jobs into the long run that’ll
Clarke
Peter W. Rusland/¿le
Workers can head to their shifts at the Crofton Mill without the gloomy cloud of bankruptcy hanging over them now that the company is out of creditor protection. have spin-offs in economic activity in all sectors. “Catalyst has a right to ask for more tax relief — it’ll be a tall order, certainly in the short-term.” Still, Clarke commended council. “I have tremendous admiration for Mayor Jon Lefebure. We’re looking for ways to improve and hire another 40 to 50 employees in Crofton. “We’re bringing people back to the island. The mayor and his folks should take great pride.” Clarke wasn’t so proud of Catalyst’s recent “collateral damage” that closed its operation in SnowÀake, Arizona. But shrugging creditor protection means Catalyst is “repositioned and restructured to
compete in today’s global world,” Clarke said, citing the hard-working Crofton mill’s place in a globally tough market. “Most or all of our pulp from Crofton goes to Asia, and more and more of our paper from Crofton goes outside of North America. “You have to be Àexible; if you’re going to compete in the modern world, things change on a blip.” From the ¿rm’s complex reorganization and related transactions, Catalyst reduced its debt by $390 million, eliminated $80 million of accrued interest, and reduced annual interest expense and other cash costs by approximately $70 million, a company release says. Clarke also said Catalyst will be issuing new equity shares by late October.
All of Catalyst’s common shares outstanding prior to the reorganization have been cancelled for no consideration. Holders of those common shares will not receive any distribution under Catalyst’s amended plan, the company says. Its amended plan was OK’ed at meetings of the company’s secured and unsecured creditors on June 25. The plan was approved by B.C.’s Supreme Court on June 28. The company has also entered into a previously announced new asset-backed loan facility and an exit-¿nancing facility, Catalyst leaders state. About US$35 million was drawn under the exit facility upon the implementation of the amended plan.
SUMMER END SPECIALS
2010 Honda Insight
DL#5963
Stk#Test3
$19,995 Discovery Honda
2003 Dodge Ram Stk#30-007A
$13,995
6466 Bell McKinnon Road, Duncan
250-748-5814
2003 Civic LX Stk#32-009A
$6,995 www.discoveryhonda.com