Catalyst Recapitalization Hearing Set for February 3

Catalyst Paper Corp., Richmond, B.C., Canada, reported this week that, in accordance with an interim order from the British Columbia Superior Court, a hearing is scheduled to be held on February 3 in regard to its previously announced recapitalization transaction. Also in February, full details of the recapitalization agreement and the transaction will be provided in a management information circular to be distributed to shareholders, holders of its 11% senior secured notes due 2016, and holders of its 7 3/8% senior notes due 2014.

Implementation of the plan of arrangement under the CBCA is subject to approval by not less than 66⅔% of the votes cast by holders of each of the senior secured notes and the senior notes at meetings to be held to consider the arrangement, the approval of the Supreme Court of British Columbia, and receipt of all necessary regulatory and stock exchange approvals. In addition, the agreement is subject to termination if a new labor agreement with all union locals at the company's Canadian mills has not been ratified by January 31.

Copies of the court documents are available on SEDAR, EDGAR, and the company's web page. Investors who have questions about the recapitalization may contact Nancy Turner of Perella Weinberg Partners, the financial advisor for Catalyst Paper, at 415-671-4550.

Catalyst Paper produces specialty mechanical printing papers, newsprint, and pulp at four mills in British Columbia and Arizona. The company has a combined annual production capacity of 1.9 million metric tons.

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