Canada's Catalyst Paper files for Chapter 15 bankruptcy

Tue Jan 17, 2012 11:39pm EST
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(Reuters) - Canada's specialty paper and newsprint producer Catalyst Paper Corp CTL.TO filed a Chapter 15 proceeding in a U.S. bankruptcy court in Delaware, court papers showed.

The Richmond, British Columbia-based company listed both assets and liabilities of more than $1 billion in a court filing.

Catalyst has been struggling with rising costs of recycled fiber and energy, and lower demand from China.

In December, the company had deferred interest payments of $21 million and said it is reviewing alternatives to address its capital structure.

The case is In re: Catalyst Paper Holdings Inc, U.S. Bankruptcy Court District of Delaware, No. 12-10219.

(Reporting by Kavyanjali Kaushik in Bangalore; Editing by Muralikumar Anantharaman)