Catalyst Paper Restructuring Plan not Approved, Sale Now Pending

The SISP will be implemented as follows:

• (a) an initial offering summary and confidentiality agreement will be distributed to known potential bidders within two days;
• (b) potential bidders will submit certain information and an executed confidentiality agreement within 14 days (the Potential Bidder Deadline);
• (c) the determination of which potential bidders are qualified bidders will occur within five days after such bidders have delivered their materials;
• (d) qualified bidders will submit a non-binding indication of interest within 35 days following the Potential Bidder Deadline (the Phase 1 Bid Deadline);
• (e) the non-binding indication of interest will be assessed within five days of the Phase 1 Bid Deadline;
• (f) provided the non-binding indication of interest has been determined to likely be consummated, the bidder will submit a purchase bid or investment bid no later than 21 days from the Phase 1 Bid Deadline (the Phase 2 Bid Deadline);
• (g) the purchase bid or investment bid will be assessed within the 5 days following the Phase 2 Bid Deadline; and
• (h) in the event that there is more than one acceptable purchase bid or investment bid, an auction will be conducted within three days of the Phase 2 Bid Deadline.

About Catalyst
Catalyst Paper manufactures diverse specialty mechanical printing papers, newsprint and pulp. Its customers include retailers, publishers and commercial printers in North America, Latin America, the Pacific Rim and Europe. With four mills, located in British Columbia and Arizona, Catalyst has a combined annual production capacity of 1.8 million tonnes. The company is headquartered in Richmond, British Columbia, Canada and is ranked by Corporate Knights magazine as one of the 50 Best Corporate Citizens in Canada.