Replies to post #30 on Catalyst Paper Corp. (fka CTLFQ)

[56Chevy]

again I'll put your comments in italics.

"i will be the first one to tell anyone I am no expert on whats going on here,.."

fwiw- I think of you as having the courage to discuss something complex. I respect that pitacorp and I know my friend and partner EI does as well. Once a person decides to invest in something the discoveries don't end there because sometimes, DD is all about preventing a loss, not ensuring a gain. Things can and do change in a BK, which could alter a persons strategy going forward to buy, sell or hold.

"...but I thought this was only a re-organization, and NOT a bankruptcy".

Make no mistake CTLFQ is in bankruptcy. The quickest most visible indication of that we have is the "Q" that was added to the end of the ticker symbol. Since Catalyst Paper is a Canadian based company, with US entities, they had to file a specific Chapter of Bankruptcy which is a Chapter 15.

http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter15.aspx

http://www.bloomberg.com/news/2012-01-18/catalyst-paper-seeks-u-s-bankruptcy-protection-amid-canada-reorganization.html

I'm thinking where you might of been confused in thinking it was something less than a bankruptcy is because Catalyst was working with their creditors before they filed CH 15 and together planned on this going into what is known as a pre-packed bankruptcy (PPBK). GM did the same thing. WAMU did not. There are huge advantages and enormous cost savings to doing a PPBK which imo benefits most everyone involved. I wish more bankruptcies were PP. Non-PPBK's can takes years to resolve. The idea behind a PPBK plan is to shorten and simplify the bankruptcy process in order to save the company money in legal and accounting fees, as well as the amount of time spent in bankruptcy protection. The sooner the company can emerge from BK, the sooner it can implement its reorganization and return to generating revenues from its core operations.

"And being this, I thought the company kept daily operations the same and just re-organized their debt".

You are correct. The debtors have remained in possession/control of the business...and daily operations have continued. They're making paper as we speak. There are limits as to what management can and cannot do while in BK but that's a discussion for another day.