Catalyst Paper CEO and CFO tender resignations
Jan. 15, 2007 - Catalyst Paper Corp.'s board of directors today announced that it has accepted the resignations of two executives who have elected to exercise change of control agreements.
Russell J. Horner, president and chief executive officer, and Ralph Leverton, vice-president, finance and chief financial officer, have tendered their resignations.
Catalyst said an executive search is underway to identify their successors and both executives have agreed to remain with the company to the end of the next annual meeting of shareholders, to be held on March 28, 2007, or the appointment of successors or interim successors, to assist in the transition.
"Russ stabilized the operational and financial performance of our company during a challenging period of industry restructuring and consolidation," said board chairman Keith Purchase. "At the same time, Ralph led the cost management and capital refinancing of the business to significantly improve the balance sheet during a protracted downturn in this cyclical sector.
Horner worked for Catalyst and its predecessor companies for more than 30 years. Prior to his appointment to lead Catalyst Paper, he served as chief operating officer Australasia for Fletcher Challenge Paper, president and chief operating officer of Fletcher Challenge Canada and president and chief executive officer of Norske Skog Canada. In 2001, he guided the merger of Norske Skog Canada and Pacifica Papers to create NorskeCanada, which was renamed Catalyst Paper in 2005.
Leverton joined Catalyst in 1999 after holding executive positions at Pope & Talbot and Harmac Pacific and a variety of financial positions with MacMillan Bloedel.
The recent acquisition by Third Avenue Management LLC of an additional 39 million common shares of Catalyst on behalf of various client accounts, exceeding a 25% threshold established under the executives' agreements with Catalyst, constituted a change of control under such agreements.
Under the terms of the control change agreement, Horner and Leverton are entitled to receive change of control and pension benefits totalling $4,779,865 and $1,582,546, respectively, on the date that their employment ends.
Catalyst produces mechanical printing papers and is headquartered in Vancouver, British Columbia. The company also produces market kraft pulp and owns Western Canada's largest paper recycling facility.
SOURCE: Catalyst Paper Corp.