MIRA INFORM REPORT

 

 

Report No. :

356446

Report Date :

28.12.2015

 

IDENTIFICATION DETAILS

 

Name :

CATALYST PULP AND PAPER SALES INC.

 

 

Registered Office :

3600 Lysander Lane, 2nd floor,  Richmond, British Columbia V7B 1C3

 

 

Country :

Canada

 

 

Date of Incorporation :

02.08.1988

 

 

Legal Form :

Corporation – Profit

 

 

Line of Business :

The Company is trader and exporter of pulp and paper.

 

 

No. of Employee :

20

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No complaints

 

 

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Canada

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

CANADA - ECONOMIC OVERVIEW

 

As a high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and high living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US, its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian merchandise exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, and electric power, and a top source of US uranium imports. Given its abundant natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economic crisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the early intervention by the Bank of Canada and the financial sector's tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010-14 and plans to balance the budget by 2015 despite the recent drop in oil prices. In addition, the country's petroleum sector is rapidly expanding, because Alberta's oil sands significantly boosted Canada's proven oil reserves. Canada now ranks third in the world in proved oil reserves behind Saudi Arabia and Venezuela and is the world’s fifth-largest oil producer.

 

Source : CIA

 

Company name and address

 

CATALYST PULP AND PAPER SALES INC.

 

Address:                                   3600 Lysander Lane, 2nd floor,  Richmond, British Columbia V7B 1C3 - Canada

 

Telephone:                    +1 604-247-4400

 

Fax:                              +1 604-247-0512

 

Website:                                   www.catalystpaper.com

 

Corporate ID#:              BC-0000349415

 

State:                           British Columbia

 

Judicial form:                Corporation – Profit

 

Date incorporated:        August 2, 1988

 

Stock:                           -

 

Value:                           -

 

Name of manager:         Joe NEMETH

 

 

ACTIVITIES & OPERATIONS

 

IST

 

Business:

 

The Company is trader and exporter of pulp and paper.

 

Staff:                            20

 

Operations & branches:

 

At the headquarters, we find the corporate office of the group.

 

 

SHAREHOLDERS & MANAGERS

 

Shareholders:

 

CATALYST PAPER CORPORATION

3600 Lysander Lane, 2nd floor, Richmond, British Columbia V7B 1C3

 

Federal Corporation, incorporated on September 1, 2001

ID# 3937615

Catalyst Paper Corporation, together with its subsidiaries, produces and sells mechanical printing papers in western North America.

The company operates through three segments: Specialty Printing Papers, Newsprint, and Pulp.

CATALYST PAPER CORPORATION is listed in Toronto under symbol CYT.

 

Management:

 

Joe NEMETH is the President, Director and CEO.

He serves as the Chief Executive Officer and President of Greenbelt Renewable Energy Inc. Mr. Nemeth has been the President and Chief Executive Officer of Catalyst Paper Corporation since October 1, 2013. He served as Vice President, Pulp & Paper Marketing at Canfor Corp., since January 2003. He served as Vice President of Sales and Marketing at Canfor Pulp Income Holding Inc., a general partner of Canfor Pulp Income Fund from July 1, 2006 to April 28, 2010.

He served as the Chief Executive Officer and President of Canfor Pulp Products Inc. from April 28, 2010 to September 30, 2012. His career spans a broad range of Forest Industry experience including Woodlands, Solid Wood Products and Pulp & Paper sectors in both production and marketing disciplines.

He served as the Chief Executive Officer and President of Canfor Pulp Holding Inc., the General Partner of Canfor Pulp Limited Partnership from April 28, 2010 to September 30, 2012. Mr. Nemeth served as Vice President of Pulp and Paper Sales and Marketing for Canfor Pulp Holding Inc. which is a General Partner of Canfor Corp., the holding company of Canfor Pulp Limited Partnership and Canadian Forest Products Ltd. He served for 14 years with Fletcher Challenge Canada (now Norske Skog) and served as Paper Mill Manager and Production Director of Paper Division at Elk Falls from 1996 to 1998 and served as Vice President of North American Newsprint Sales from 1999 to 2000. He has been a Director of Welwind Energy International Corporation since July 6, 2001. He has been a Director at Fortress Paper Ltd., since October 17, 2012 and its Lead Director since April 1, 2013. He serves as a Director of Greenbelt Renewable Energy Inc., Catalyst Paper Corporation, Cultus Lake Capital VCC Board, and the International Bio-Recovery Vancouver Island Board. He served as a Director of Canfor Pulp Holding Inc., the General Partner of Canfor Pulp Limited Partnership from April 28, 2010 to April 24, 2012.

Mr. Nemeth served as a Director of Vitasti Inc. since July 6, 2001.

He has a Master of Business Administration degree from the University of Western Ontario and a Bachelor of Forestry (Honours) degree from the University of British Columbia.

 

Brian BAARDA is the CFO.

 

As far as we know, they are involved in several other corporations of the group.

 

 

FINANCIALS

 

In Canada, privately held corporations are not required to publish any financials.

 

On a direct call, a financial assistant controlled the present report and confirmed that all financials are consolidated into the parent company which reported:

 

Sales 2013: CAD 1,109,300,000=

Net loss:   CAD    72,300,000=

 

Banks:  Royal Bank of Canada

           

 

LEGAL FILINGS

 

Legal filings & complaints:

 

As of today date, there is no legal filing pending with the Courts.

 

Secured debts summary:   None

 

 

COMPANY CREDIT HISTORY

 

Trade references:

 

Date reported:               November 2015

High credit:                   CAD 15,000

Now owing:                   0

Past due:                      0

Last purchase:              October 2015

Line of business:           Office supply

Paying status:               On terms

 

Date reported:               November 2015

High credit:                   CAD 60,000

Now owing:                   0

Past due:                      0

Last purchase:              October 2015

Line of business:           Payroll

Paying status:               As agreed

 

Date reported:               November 2015

High credit:                   CAD 880

Now owing:                   0

Past due:                      0

Last purchase:              October 2015

Line of business:           Telecommunications

Paying status:               On terms

 

Domestic credit history:

 

National Credit Bureaus gave a satisfying credit rating.

 

Other comments:

 

The Company maintains its business.

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

The risk is low.

 

Our opinion:

 

A business connection may be conducted.

However, due to losses registered with the parent company in 2014, we suggest you a report on CATALYST PAPER CORPORATION.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.20

UK Pound

1

Rs.98.30

Euro

1

Rs.72.41

CAD

1

Rs. 47.72

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ASH

 


 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.