Catalyst Paper Cuts Loss Despite Weak Markets

On March 25, Catalyst offered to purchase US$20.0 million of its floating rate senior secured exit notes, at par plus accrued and unpaid interest, using proceeds from the PREI sale. Holders of US$15.6 million in notes accepted this now-expired offer. We are in discussions with certain holders of the remaining exit notes with a view to obtaining a waiver of the terms of the indenture governing the exit notes to permit the company to repurchase our PIK Toggle Senior Secured Notes due 2017 while exit notes are outstanding.