Aug 01, 2012. /Lesprom Network/. Catalyst Paper recorded a net loss of $11.7 million in the 2Q 2012 ($0.03 per common share), in comparison to a net loss of $25.6 million ($0.07 per common share) the quarter before. Improvement in the current quarter was mainly due to a gain on the sale of surplus-assets and a net reorganization credit reflecting confirmed claim amounts. Before these and other specific items, the net loss for the quarter was $5 million compared to a net loss of $9.6 million in the prior quarter, as the company said in the press release received by Lesprom Network. Earnings before interest, tax, depreciation and amortization (EBITDA) in the 2Q was $14.6 million and EBITDA before restructuring costs was $14.5 million, compared with EBITDA of $18.1 million and EBITDA before restructuring costs of $23.3 million in the 1Q. "We focused relentlessly on satisfying the requirements of the reorganization process and it's gratifying to have gained creditor approval of our second amended plan of arrangement," said Catalyst President and CEO Kevin J. Clarke. "We reached that milestone within five months of entering creditor protection and are now poised for an orderly exit in the 3Q. While market conditions are challenging, the benefit of reduced operating costs and the 60% reduction in debt puts us on much better competitive footing as our industry continues to reinvent for the future." Catalyst filed for creditor protection on January 31, 2012 and on June 14, 2012 announced a second amended plan of arrangement. This plan received the necessary creditor approval on June 25, 2012 and was subsequently approved by both the British Columbia Supreme Court and by the United States Court in Delaware. Sale and investor solicitation procedures relating to all or substantially all of the company's assets - initiated when an earlier version of the plan fell short of required levels of creditor support - were suspended. Creditor protection has been extended to September 30, 2012, and implementation of the approved plan of arrangement is conditional on Catalyst securing a new asset-based loan facility and adequate exit financing. Implementation of the plan is expected to reduce annual operating costs by approximately $35 million, annual interest expenses by $34 to $42 million and will reduce long-term debt by nearly $400 million. Catalyst Paper manufactures diverse specialty mechanical printing papers, newsprint and pulp.