Catalyst
Paper today announced an update on the further amended plan of arrangement
(Amended Plan) under the Companies' Creditors Arrangement Act. Catalyst Paper
has reached an agreement in principle with certain additional holders of its 7
3/8% senior notes due March 1, 2014 (Unsecured Notes) on the terms of a
settlement and support agreement (Agreement) to be entered into with respect to
the Amended Plan. These additional holders, who voted against the prior Plan of
Arrangement, hold approximately US$120 million aggregate principal amount of
outstanding Unsecured Notes.
