The Working Forest Newspaper

Catalyst Paper gains additional support for recapitalization

January 26, 2012

By: Working Forest Staff

Catalyst Paper Corporation announced that it has gained additional support for the proposed recapitalization transaction and now has the support of holders of approximately 69.8% of the company's 11% senior secured notes due 2016 (the Senior Secured Notes) and holders of approximately 40.1% of the company's 7 3/8% senior notes due 2014 (the Senior Notes were issued under the company's former name, Norske Skog Canada Limited).  Holders of the Senior Secured Notes and Senior Notes who are parties to the Restructuring and Support Agreement (or have signed joinder agreements) have agreed to vote in favour of and support the recapitalization transaction. The company will continue to solicit and expects further support for the recapitalization by January 27, 2012 (the early consent deadline under the Agreement).

Details of the recapitalization will be provided in an information circular expected to be distributed to shareholders and holders of the Senior Secured Notes and Senior Notes in February, 2012. The recapitalization is expected to close by March 31, 2012.

Catalyst Paper Corporation