Catalyst Paper reported that while it continues its review of alternatives to address its capital structure, it will defer the ~$21 million interest payment on its outstanding 11% Senior Secured Notes due 2016 and Class B 11% Senior Secured Notes also due 2016. The payment is due today. The company said operations are expected to continue as usual and obligations to customers, suppliers and employees will be met in ordinary course. Catalyst has 30 days within which to make the interest payment before triggering default. Failure to do so would allow 2016 Note holders to declare the $390 million principal and accrued interest immediately due and payable. If that demand were not satisfied in thirty days, it would constitute a default under the indenture relating to the company’s $250 million outstanding 7.375% Senior Notes due 2014.
