Richmond, BC - Catalyst Paper Corporation (TSX:CTL) announces, in accordance with an interim order from the British Columbia Superior Court (the Court) dated January 17, 2012, that a hearing (the Hearing) is scheduled to be held on February 3, 2012 with respect to its previously announced recapitalization transaction. Full details of the recapitalization agreement (the Agreement) and the transaction will be provided in a management information circular (the Circular) expected to be distributed to shareholders, holders of its 11% senior secured notes due 2016 (the Senior Secured Notes) and holders of its 7 3/8% senior notes due 2014 (Senior Notes and together with the Senior Secured Notes, the Noteholders) in February 2012.  At the Hearing, Catalyst Paper will apply for the following orders and declarations:

.    an order that the Circular of Catalyst Paper be deemed to represent sufficient and adequate disclosure, including for the purpose of section 192 of the Canada Business Corporations Act (CBCA), and Catalyst Paper shall not be required to send to Noteholders any other or additional statement pursuant to section 192 of the CBCA;

.    an order approving a form of proxy that Catalyst Paper is authorized to use in connection with the Noteholders' meetings;

.    an order approving January 27, 2012, or such other date as disclosed by Catalyst Paper in a press release, as the early consent date for the purposes of the proposed arrangement and consideration allocated thereunder;

.    a declaration that a vote of the holders of common shares in the capital of Catalyst Paper is not required for court approval of the proposed arrangement pursuant to section 192(4)(e) of the CBCA;

.    an order that the votes cast in favour of the arrangement at the Meeting shall, in the event of a subsequent Companies' Creditors Arrangement Act (CCAA) proceeding being commenced as a result of the petitioners not obtaining the requisite votes at the Meeting or obtaining the final order, in all respects be counted as votes in favour of the recapitalization transaction in such CCAA proceedings; and

.    such further and other relief as counsel for any petitioners may advise and the Court may deem just.

Copies of the court documents are available on SEDAR ().  Investors who have questions about the recapitalization may contact Nancy Turner of Perella Weinberg Partners, the financial advisor for Catalyst Paper, at 415-671-4550.

Implementation of the plan of arrangement under the CBCA is subject to approval by not less than 66

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