General

Richmond, (BC) – Catalyst Paper (TSX:CTL) posted a net loss of $12.9 million ($0.03 per common share) on sales of $303.6 million in the first quarter of 2011, reflecting a post-holiday season plateau in paper markets. Sales revenues were negatively impacted by the above-par Canadian dollar; however a foreign exchange gain was recorded on the translation of U.S. dollar denominated debt. In the previous quarter, net earnings of $9.6 million ($0.02 per common share) were recorded on sales of $333.6 million.

Richmond, BC – Catalyst Paper (TSX:CTL) today advised that a fire in the storage yard at its Snowflake Mill in northeast Arizona has shut down production and destroyed approximately 14,000 tonnes of recovered waste paper.

Richmond, (BC) – Catalyst Paper (TSX:CTL) posted a net loss of $396.9 million ($1.04 per common share) on sales of $1,228.6 million during 2010. Results were significantly impacted by one-time charges of $304.2 million, including severance and impairment, associated with the permanent closure of the Elk Falls paper mill and Paper Recycling Division. The company’s net loss in 2009 was $4.4 million ($0.01 per common share) on sales of $1,223.5 million.

Richmond, BC – Catalyst Paper (TSX:CTL) today announced $13.3 million in Federal funding approval of a new green-energy project at its Powell River mill that will produce low-carbon electricity and be one of the cleanest waste wood co-generation projects anywhere in Canada.  The project is funded entirely by the Pulp and Paper Green Transformation Program (PPGTP) credits, earned through production of black liquor at the Crofton pulp operation in 2009.  The electricity will be certified under the federal EcoLogo program.

Richmond, B.C. – Catalyst Paper Corporation (TSX:CTL) today announced that it has elected to redeem on February 11, 2011 all its outstanding 8 5/8% Senior Notes due June 15, 2011, in an aggregate principal amount of U.S.$26,027,000, at a redemption price of 100% of the face value of these Senior Notes.

Richmond, BC – Catalyst Paper (TSX:CTL) today announced several changes to its board of directors which take effect July 30, 2010.

Assuming the role of chairman is Benjamin Duster IV, former chairman of Algoma Steel. Mr. Duster joined the Catalyst board in December 2006 bringing 20 years of Wall Street experience. He is a graduate of Harvard Business and Harvard Law Schools and was admitted to the Illinois Bar in 1985. Mr. Duster is a director on several corporate boards including Jazz Air Holding GP Inc.

Richmond (BC) – Catalyst Paper (TSX:CTL) announced today that it is permanently closing its Elk Falls paper mill near Campbell River, British Columbia in September. This facility has been indefinitely curtailed since February 2009.

“Today’s news is a disappointing outcome for mill employees and families, for the community, and for our business,” said Catalyst President and CEO Kevin J. Clarke. “The steep decline in commodity paper markets, coupled with uncompetitive labour and tax costs were contributing factors that could not be overcome.”

Richmond, BC – Catalyst Paper (TSX:CTL) announced, today, the appointment of Kevin J. Clarke as President and Chief Executive Officer. Mr. Clarke is a seasoned print industry executive bringing nearly three decades of experience with World Color (Quebecor World) to his new role at Catalyst.
 

Richmond, BC – Catalyst Paper (TSX:CTL) today announced the appointment of Denis Jean, a current director of the Board as the company’s interim president and chief executive officer, effective immediately.

Richmond, BC – Catalyst Paper Corporation (TSX:CTL) today announced that it has entered into an agreement to sell to certain initial purchasers on a private placement basis US$110 million in aggregate principal amount of Class B 11% senior secured notes due December 15, 2016 at an offering price of 86.000% of the principal amount. The initial purchasers may retain the Class B senior secured notes for their own accounts and/or may resell the Class B senior secured notes to qualified institutional buyers pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended (the “Securities Act”).

Powell River, BC – Catalyst Paper and the City of Powell River have inked an agreement in principle to achieve the twin objectives of reducing the Class 4 property tax rate paid by the company’s Powell River mill while assisting the City in reducing significantly its capital expenditures for future municipal service infrastructure.


“Council committed to looking for solutions to the major industry property tax in Powell River,”
said Mayor Stewart Alsgard. “We have held frank, realistic discussions with Catalyst culminating in a very positive outcome that reflects the needs of the community and provides for a way forward under challenging circumstances.”

Richmond, (BC) – Catalyst Paper (TSX:CTL) recorded a net loss attributable to the company of $4.4 million, or $0.01 per common share in 2009, compared to a net loss attributable to the company of $219.8 million, or $0.65 per common share in 2008.
 
Effective December 31, 2009, the company adopted U.S. generally accepted accounting principles (US GAAP) for presentation of its 2009 consolidated financial statements. As a consequence, the quarterly consolidated financial statements for 2009 have been restated into US GAAP and are being filed concurrently with the company’s annual consolidated financial statements.