Catalyst Rescinds Financing Plan

Paper company cites difficult environment as reason to withdraw plan.

Catalyst Paper Corp., headquartered in Vancouver, BC, has decided to withdraw its earlier proposed private placement strategy to sell $200 million in aggregate principal of senior notes. The company cited adverse market conditions for pulling back from the program.

Catalyst has five mills with a combined capacity of 2.4 million metric tons. The company produces mechanical printing paper, kraft pulp, and operates what it claims is the largest paper recycling facility in Western Canada.