Catalyst Paper Muddies the Water with Its Clarification and 443-Word Sentence

The Canadian papermaker has worked out a proposed deal with many of its bondholders that would enable it to avoid bankruptcy, but would turn up to 99.5 percent of its stock over to the bondholders in exchange for debt reduction. The announcement didn’t mention that Catalyst would file a Chapter 15 case in U.S. Bankruptcy Court asking that Canadian courts have jurisdiction over its recapitalization.

Catalyst is still in business and has not repudiated debts owed to vendors, employees, or retirees, but isn’t it splitting hairs to claim that a case filed in bankruptcy court is not a bankruptcy proceeding?