Cyrus Group of Funds updates report on holdings of common shares of Catalyst Paper Corporation

TORONTO, Sept. 19, 2014 /CNW/ - Cyrus Capital Partners, L.P. ("CCP") today announced that on September 17, 2014, CCP acquired indirect control over an additional 700,030 common shares ("Common Shares") of Catalyst Paper Corporation ("Catalyst Paper") in purchases effected through Chi-X Canada ATS Ltd. (the "Share Purchases") pursuant to which Cyrus Opportunities Master Fund II, Ltd. ("CMF II") acquired 577,554 Common Shares, CRS Master Fund LP ("CRS") acquired 74,780 Common Shares, and Crescent 1 LP ("CRES") acquired 47,696 Common Shares at a price of CDN$2.00 per Common Share..

Following completion of the Share Purchases, CCP now exercises indirect control over an aggregate of 4,841,092 Common Shares, or approximately 33.32% of the issued and outstanding Common Shares.  Ownership of the 4,841,092 Common Shares over which CCP exercises indirect control is collectively held by CMF II, CRES, CRS, and other funds managed by CCP, including Cyrus Select Opportunities Master Fund Ltd. ("CSOM"), Cyrus Opportunities Fund II, L.P. ("CLP II") and CYR Fund, L.P. ("CYRF" and, collectively with CMF II, CRES, CRS, CSOM, and CLP II, the "Funds").  CCP previously exercised indirect control over an aggregate of 4,141,062 Common Shares.  The table below sets forth the number and percentage amount of outstanding Common Shares owned by each of the Funds after giving effect to the Share Purchases:

Fund	Number of Common Shares Held	Percentage of Outstanding Common Shares Held
CMF II	2,670,510	18.38%
CSOM	364,413	2.51%
CLP II	172,205	1.18%
CRES	855,203	5.89%
CRS	386,516	2.66%
CYRF	392,245	2.70%
Total	4,841,092	33.32%

CCP is the investment manager of each of the Funds and exercises sole discretion over all investments decisions made by each of them.

For purposes of calculating the percentages of Common Shares owned by the Funds and indirectly controlled by CCP, CCP has assumed that there were 14,527,571 Common Shares outstanding at July 29, 2014, as disclosed by Catalyst Paper in its Management's Discussion and Analysis for the quarter ended June 30, 2014, as filed on SEDAR on July 29, 2014.

Other Information

CCP acquired indirect control over, and CMF II, CRS, CRES, and the other Funds acquired ownership of, the Common Shares that are the subject of this release for investment purposes. 

In connection with the investment by the Funds in the Common Shares, CCP may engage in communications with members of management and the board of directors of Catalyst Paper, other current or prospective shareholders, industry analysts, existing or potential strategic partners or competitors, investment and financing professionals, sources of credit and other investors with respect to Catalyst Paper.  CCP intends to review the Funds' investment in Catalyst Paper on a continuing basis.  Depending on various factors including, without limitation, Catalyst Paper's financial position, the price levels of the Common Shares, conditions in the securities markets and general economic and industry conditions, CCP's or the Funds' business or financial condition and other factors and conditions CCP deems appropriate, the Funds may in the future take such actions with respect to their investment in Catalyst Paper as CCP deems appropriate including, without limitation, seeking board representation, making proposals to Catalyst Paper concerning changes to the capitalization, ownership structure or operations of Catalyst Paper, acquiring additional Common Shares, and/or selling or otherwise disposing of some or all of their Common Shares. In addition, CCP may formulate other purposes, plans or proposals regarding Catalyst Paper or any of its securities to the extent deemed advisable in light of general investment and trading policies, market conditions or other factors or may change its intention with respect to any and all matters referred to above.

Neither the issuance of this news release in connection with the matters disclosed herein nor the anticipated filing by CCP of the corresponding "early warning" report required to be filed in accordance with applicable Canadian securities laws is an admission that an entity named or otherwise referred to in this news release owns or controls any described securities or is a joint actor with another entity named or otherwise referred to in this news release.

CCP's address and other contact information is set forth below.  For further information, including to obtain a copy, once filed, of the "early warning" report required to be filed in accordance with applicable Canadian securities laws, contact CCP at the address specified below.

SOURCE: Cyrus Capital Partners, L.P.

Cyrus Capital Partners, L.P., 399 Park Avenue, 39th Floor, New York, NY 10022, United States of America; Attn: Thomas Stamatelos, Chief Financial Officer/Co-Chief Operating Officer, Tel: [phone]