Investor quits on Catalyst

February 21, 2012

Catalyst Paper has announced one of its investors, Third Avenue Management LLC based in New York, has sold over 105 million of its common shares in the company.

That amounts to about 27.5 per cent of the issued and outstanding shares in Catalyst. It’s not clear yet what the implications are. Calls to Catalyst and Third Avenue Management weren't returned as of Tuesday afternoon, but Catalyst President and CEO Kevin Clarke is scheduled to meet with the district of North Cowichan Wednesday.

The owner of Crofton Pulp and Paper Mill is currently protected from its creditors under a court order until the end of April. It's also under a financing agreement with JP Morgan to keep its operations going while a debt restructuring plan is being figured out.