The Supreme Court of British Columbia has approved advances under the debtor-in possession (DIP) financing of up to approximately $175 million from JP Morgan, subject to certain terms and conditions, that the lenders have agreed to provide to Catalyst during the CCAA proceedings.
The Court has declared certain named suppliers of the company as “critical suppliers” and requires those suppliers to continue to supply goods and/or services to the company on terms and conditions consistent with their supply relationship with the company as of January 27, 2012. The court order provides the critical suppliers with a charge to secure amounts they extend to the company after February 6, 2012. The critical suppliers have the right to make an application to the Court to vary the critical supplier order on March 11, 2012.
