An Indian-based paper company is considering the purchase of Catalyst Paper (OTW  5/26 edition).

In a statement released to The Cowichan Valley Citizen (Duncan, B.C., Canada) this past Friday (June 24), Catalyst (Richmond, B.C., Canada) said it has received an expression of intent outlining the terms of the potential acquisition from Kejriwal Group and the four principal stakeholders in Catalyst — bondholders who also own 79% of shares in the B.C.-based company.

The four stakeholders are Mudrick Capital Management LP, Cyrus Capital Partners LP, Oaktree Capital Management LP, and Stonehill Management LLC.

Catalyst's statement said that the company’s board of directors is encouraged by Kejriwal’s tentative proposal.

But no timeline is given for the possible sale and Catalyst included a caution to investors in its statement. "There can be no assurance that any definitive proposal will be made, that any agreement will be executed and on what terms, or that this or any other transaction will be approved or consummated," Catalyst said.