Asset Impairment Overshadows Catalyst Paper’s Improved Financial Results

The Snowflake impairment charge consists of a full write-down of the net book value of building, machinery and equipment, as well as the cost of materials and parts inventory. The profitability of recycled newsprint production at Snowflake is being severely impacted by demand declines and by supply and price pressures relating to recovered old newsprint (ONP) which is the mill’s sole fibre feedstock. The impairment charge is therefore being taken in accordance with U.S. generally accepted accounting principles.