Catalyst completes Snowflake mill asset sale
Catalyst Paper announced that it has completed the U.S. Court approved sale of the Snowflake assets and shares of Apache Railway.
The Hackman Capital-led buyer group purchased the assets of the closed Snowflake facility and the shares of Apache Railway for US$13,460,000 and other non-monetary consideration. The transaction received local support from the Town of Snowflake and other interests, based on the buying group’s intention to continue to operate the Apache Railway as a going concern.
“The successful completion of this transaction will assist Catalyst in reducing its interest obligations and improve overall liquidity,” said President and Chief Executive Officer Kevin J. Clarke. “With challenging markets and currency impacts to contend with, we are maintaining tight control of spending on all fronts and making the sale of all remaining non-core assets a priority.”
Aided by the sale of the Snowflake assets and the sale of inventories and realization of accounts receivable associated with the Snowflake closure, Catalyst has been able to repay substantially all of its cash drawings under its ABL facility leaving only customary letters of credit and a minimal cash drawing outstanding under the facility at this point in time. Drawings under the ABL facility fluctuate with Catalyst’s working capital needs from time to time.