Canada's Catalyst Paper Pursues Ch. 15 Protection

Law360, New York (January 18, 2012, 5:43 PM EST) -- Canada's Catalyst Paper Corp. on Tuesday launched a Chapter 15 bankruptcy petition in the U.S., saying it needs to restructure its debt because of lower demand and higher costs for its products.

British Columbia-based Catalyst, through its U.S. affiliate Catalyst Paper Holdings Inc., filed the petition in Delaware bankruptcy court, citing both liabilities and assets in excess of $1 billion.

Under U.S. bankruptcy laws, Chapter 15 grants a foreign company protection from creditors looking to seize its assets in the country.

Catalyst, which says it is...
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