The following is Travis` update on what was said during the conference call with Kevin Clarke:
What was approved by the judge was:
1.A plan of arrangement for claims that are able to be put to creditors.
2.The Sip (Sales Investors Solicitation).
There will be a Creditors Meeting and vote on April 23rd.
May 15th is the projected emergence from CCAA.
The bondholders are planning to tour Crofton and Powell River on April 15th and 16th. Kevin Clarke is in Port Alberni on April 5th for a meeting with the city in morning and mill in the afternoon.
Ben Duster resigned from board last weekend. Transition to the new board will be Kevin Clarke and six others.
Kevin Clarke visited all CEO’s of our customers in the last 10 days and said the meetings went well.
In 10 days or so a profit sharing incentive plan will be showing up in the mills.
Kevin Clark will announce if the 2016s and 2014s come to a deal.
New debt will be 325 million of first lean notes and a 43 million dollar coupon note for interest. There will be a non recourse debt of 115 million and on top of that a 300 million dollar debt associated with all employees debts (bridging, top up, unfunded liabilities in other pension plans) to be paid over contract. In addition the DIP financing will be replaced by the Asset Based Loan which is quite often called the revolver.
They will not pay interest unless they have liquidity in the company of 95 to 100 million.
The 2016 and 2014/2016 crossovers are on board. Currently the 2014 are at about 25% approval of the new deal.
There was another fire in Powell River on March 22nd. They are expected to start up on the 24th.
If the SIP process goes through it will take approximately 73 days to emerge from CCAA.
If anymore wants clarification of this report contact Travis Goodyear at 724-5353.