Nov 14, 2012. /Lesprom Network/. A significant one-time credit arising from reorganization gains and "fresh-start accounting" valuation adjustments resulted in 3Q net earnings of $655.7 million for Catalyst Paper. The company emerged from creditor protection on September 13, 2012 with significant debt and cost-structure improvements, as Catalyst Paper said in a press release received by Lesprom Network. Net earnings this quarter contrast with a net loss of $11.7 million the quarter before. Sales were essentially unchanged at $265.7 million. The net after-tax restructuring-related credit was $688.1 million. An after-tax foreign exchange gain on translation of U.S. dollar denominated debt of $25.2 million further supported 3Q earnings. Before these and other specific items, Catalyst posted a net loss for the 3Q of $48.7 million, compared to a net loss of $5 million in the prior quarter. Earnings before interest, tax, depreciation and amortization (EBITDA) in the 3Q were $13.8 million and EBITDA before restructuring costs was $14 million, compared with EBITDA of $17 million and EBITDA before restructuring costs of $16.9 million in the 2Q. "The 3Q marked a turning point for Catalyst as we exited creditor protection with a stronger balance sheet, lower interest costs and lower annual operating costs going forward," said President and CEO Kevin J. Clarke. "This puts us on stronger operational footing to address ongoing market dynamics. And it means Catalyst can now take a much more active role in the transformation of the industry as a whole." After filing for creditor protection on January 31, 2012, Catalyst secured 99% approval from voting creditors for its second amended plan of arrangement under the CCAA on June 25, 2012. The plan subsequently received court sanction in British Columbia and was confirmed by the US Court in Delaware. A new asset-based loan (ABL) facility was in place on September 13, 2012, meeting the final pre-condition for implementation of the plan. Previous secured note holders received shares and $250 million of new senior secured notes due 2017 in exchange for their $390 million of secured notes due 2016. In addition, we issued $35 million of new exit notes under a secured exit financing facility on September 13, 2012, to pay restructuring costs and expenses and to manage other contingencies on exit from CCAA protection. The restructuring has reduced Catalyst's debt by $390 million, eliminated $80 million of accrued interest, and reduced annual interest expense and other cash costs by $70 million. Catalyst Paper manufactures diverse specialty mechanical printing papers, newsprint and pulp. With three mills, located in British Columbia, Catalyst has a combined annual production capacity of 1.5 million tonnes.