RICHMOND, BC—Catalyst Paper based in Richmond, B.C. has announced it has successfully completed its reorganization under the Companies’ Creditors Arrangement Act.

The company says as a result of the reorganization and related transactions, it has 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.

It filed for creditor protection in January and said it would be "business as usual" through the process.

“We entered the reorganization process with a clear objective to put Catalyst on stronger financial footing and we have done so,” said Kevin J. Clarke, President and chief executive officer. “Sales kept our order book strong, operations ran well and, going forward, we intend to capitalize on the momentum generated to compete even more vigorously in the markets for our products.”

In early August, the company noted it had entered into an agreement with a Canadian chartered bank for a $175 million syndicated asset based loan facility, which was a pre-condition for Catalyst to exit from creditor protection.

Catalyst Paper manufactures diverse specialty mechanical printing papers, newsprint and pulp.

The company sold its closed Elk Falls site in Campbell River to Pacifica Deep Sea Terminals for $8.6 million, according to a Vancouver Sun article. Catalyst Paper also announced it has begun a sale process for its Snowflake mill and associated assets, located in the foothills of the White Mountains in northeastern Arizona. The company announced the permanent closure of the mill in July.