Asset Impairment Overshadows Catalyst Paper’s Improved Financial Results

A claim made by Quebecor World (USA)’s litigation trustee under the U.S. Bankruptcy Code, seeking return of approximately $18.8 million in alleged preferential payments, was settled during the quarter for a non-material amount that was covered by Catalyst’s allowance for doubtful accounts.

The process of reverting from a single harmonized sales tax to separate provincial and federal sales taxes is now underway in British Columbia following the public referendum in August. Catalyst anticipates additional annual tax costs of approximately $10.5 million from this change, which will occur no earlier than April 1, 2013.