Deadline for definitive agreement extended between Catalyst shareholders, potential buyer

Catalyst Paper Corporation announced that its four largest shareholders have agreed to continue talking with Kejriwal Group International

Catalyst Paper Corporation announced Aug. 17 that its four largest shareholders have agreed to continue talking with Kejriwal Group International on a possible sale of the pulp and paper giant.

The shareholders, who control close to 80 per cent of Catalyst, are Mudrick Capital Management, L.P., Cyrus Capital Partners, LP, Oaktree Capital Management, L.P. and Stonehill Capital Management LLC.

They have now amended a previously announced statement of support for KGI and, accordingly, have filed amended Schedule 13Ds with the United States Securities and Exchange Commission, a press release stated.

Catalyst is not a party to the amended support agreement but has entered into a confidentiality and non-disclosure agreement with KGI, which allows KGI to initiate its due diligence process in connection with the proposed transaction.

The amended support agreement provides, in particular, for the extension of the deadline to sign a definitive agreement (now Oct. 25), but keeps Dec.15 as the deadline to complete a transaction, and for KGI to provide regular and satisfactory updates to the principal securityholders confirming the status and progress of the transaction, the release said.

However, this continued conversation does not mean there is any assurance of a definitive agreement with KGI, Catalyst pointed out.