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Volume 61, No. 15

169/2018

The British Columbia Gazette,

Part II

July 31, 2018

B.C. Reg. 169/2018 , deposited July 27, 2018, under the PENSION BENEFITS STANDARDS ACT [sections 45 (2), 52 (2) and 133]. Order in Council 428/2018, approved and ordered July 27, 2018.

On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that the Pension Benefits Standards Regulation, B.C. Reg. 71/2015, is amended as set out in the attached Appendix.

— C. JAMES, Minister of Finance and Deputy Premier ; J. HORGAN, Presiding Member of the Executive Council .

Appendix

1 The Pension Benefits Standards Regulation, B.C. Reg. 71/2015, is amended by repealing

section 10 (13) and substituting the following:

(13) The Catalyst Paper Corporation Retirement Plan for Salaried Employees and the participating employer, as defined in

Schedule 6,

(

a) are exempt from the provisions of the Act and this regulation as set out in

Schedule 6, to the extent and on the conditions specified in that Schedule, and

(

b) are subject to the requirements as set out in

Schedule 6 if the Plan and participating employer cease to be exempt because a condition specified in that

Schedule has not been met.

Section 2 (1) of

Schedule 6 is amended by striking out “

section 3 ” and substituting “ sections 3 and 4 ”.

Schedule 6 is amended by adding the following sections:

Additional conditions of exemptions

(1) In this section:

“Catalyst BC asset corporation” means a Catalyst corporation that has a direct or indirect legal or beneficial interest in a Catalyst property;

“Catalyst BC asset partnership” means a Catalyst partnership that has a direct or indirect legal or beneficial interest in a Catalyst property;

“Catalyst corporation” means the Catalyst Paper Corporation or any affiliate, within the meaning of

section

2 of the Business Corporations Act , of the Catalyst Paper Corporation;

“Catalyst partnership” means a partnership composed of partners that are Catalyst corporations;

“Catalyst property” means any of the following properties that are operated by one or more Catalyst corporations,

one or more Catalyst partnerships or a combination of Catalyst corporations and Catalyst

partnerships:

(

a) the distribution centre;

(

b) the corporate headquarters;

(

c) a mill;

“corporate headquarters” means the property and undertaking owned or leased by a Catalyst corporation or Catalyst

partnership and the business operation comprising the corporate headquarters located

at 3600 Lysander Lane in Richmond;

“distribution centre” means the property and undertaking owned or leased by a Catalyst corporation or Catalyst

partnership and the business operation comprising the distribution centre located

at 10555 Timberland Road in Surrey;

“mill” means the property and undertaking owned or leased by a Catalyst corporation or Catalyst

partnership and the business operation comprising a paper or pulp and paper mill that

is located at or near Crofton, Port Alberni or Powell River.

(2) The conditions in this

section apply to the period beginning on the date this

section comes into force up to and including the end of the exemption period.

(3) In addition to the conditions set out in

section 3, the exemptions under

section 2 are made on all of the following conditions:

(

a) no sale, transfer, lease or other disposition or conveyance of any kind of

all or part of a Catalyst property occurs and no agreement to do any of those things

is entered into, other than a disposition, conveyance or agreement made or entered

into in the ordinary course of business;

(

b) no petition or other document that starts a proceeding is filed in a court

of competent jurisdiction or with an appropriate public officer for the liquidation

or winding up of a Catalyst BC asset corporation, no order is made granting such relief and no Catalyst BC asset corporation passes a resolution for such relief;

(

c) no Catalyst BC asset partnership is dissolved and there is no agreement among

partners of a Catalyst BC asset partnership to dissolve the partnership;

(

d) no Catalyst BC asset corporation or Catalyst BC asset partnership files an assignment for the general benefit of creditors under

the Bankruptcy and Insolvency Act (Canada) or makes a proposal under that Act or seeks relief under the United States

Bankruptcy Code , and no Catalyst BC asset corporation passes a resolution to make such an assignment or proposal or

to seek such relief;

(

e) no Catalyst BC asset corporation passes a resolution or files a petition or

other document that starts a proceeding to seek relief under the Companies’ Creditors Arrangement Act (Canada);

(

f) there is no agreement among partners of a Catalyst BC asset partnership to

seek relief under the Companies’ Creditors Arrangement Act (Canada) and no Catalyst BC asset partnership files a petition or other document

that starts a proceeding to seek relief under that Act;

(

g) no receiver or receiver manager is appointed in respect of all or part of

a Catalyst property;

(

h) subject to paragraph (i), no person who is a creditor of or has a claim against

a Catalyst BC asset corporation or Catalyst BC asset partnership files

(

i) a petition or other document that starts a proceeding to seek relief under

the Companies’ Creditors Arrangement Act (Canada) in respect of a Catalyst BC asset corporation or Catalyst BC asset partnership,

(ii) an application with a court of competent jurisdiction for the appointment

of a receiver or a receiver manager for all or part of a Catalyst property, or

(iii) an application with a court of competent jurisdiction for a bankruptcy order

under the Bankruptcy and Insolvency Act (Canada) or an order under the United States Bankruptcy Code against a Catalyst BC asset corporation or Catalyst BC asset partnership;

(

i) paragraph (

h) does not apply if the Catalyst BC asset corporation or Catalyst BC

asset partnership against whom the proceeding or application is brought opposes in

good faith the proceeding or application before the earlier of the following:

(

i) the day before the day that the hearing is scheduled;

(ii) the last day for filing notice that the Catalyst BC asset corporation or

Catalyst BC asset partnership opposes the proceeding or application;

(

j) no Catalyst BC asset corporation or Catalyst BC asset partnership ceases to

carry on business in the ordinary course;

(

k) no change occurs in the ownership of shares of a Catalyst BC asset corporation

that results in one shareholder holding or beneficially owning, other than by way

of security only, enough shares to elect a majority of the corporation’s directors,

unless the owner acquiring the shares is a Catalyst corporation or Catalyst partnership;

(

l) no legal or beneficial interest in a Catalyst BC asset partnership is transferred

to a person who is not a Catalyst corporation or Catalyst partnership;

(

m) no Catalyst BC asset corporation amalgamates with another corporation other

than a Catalyst corporation or agrees to amalgamate with another corporation other

than a Catalyst corporation.

Requirements if exemption ceases

(1) In this section, “2012 solvency deficiency” means the solvency deficiency of the plan identified in the 2012 actuarial valuation

report.

(2) If the plan and participating employer cease to be exempt from the provisions

of the Act and this regulation set out in

section 2 (1) because a condition set out

section 3 or 4 has not been met,

(

a) despite

section 57 (8) of this regulation, an actuarial gain identified in

an actuarial valuation report filed after the 2012 actuarial report must not be used to reduce or eliminate the 2012 solvency deficiency, and

(

b) despite

section 64 (1) (

c) of this regulation, the participating employer

must immediately remit contributions to the plan that are sufficient to eliminate

the balance of the 2012 solvency deficiency as that balance is set out in the current actuarial valuation

report.

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