Catalyst Paper Corp. said Monday it has decided to defer a $100-million rights offering originally proposed in November until the paper company has completed its search for a new chief executive officer.
Catalyst had announced in November its intention to conduct the rights offering alongside an exchange offer involving its outstanding 8 5/8 per cent senior notes due June 15, 2011.
Last week it announced that Richard Garneau will step down April 28 to move back to Eastern Canada to be closer to his family.
"A search for a successor is under way and the board has determined that completing this succession process is desirable prior to initiating the proposed rights offering," the company said in a statement.
"As a result of this and current market and industry conditions, the company has reconsidered the timing of the proposed rights offering and will not proceed with it at this time."
Catalyst has six mills in British Columbia and Arizona, producing specialty printing papers, newsprint and pulp. Its customers include retailers, publishers and commercial printers in North America, Latin America, the Pacific Rim and Europe.