20-F/A

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 20-F/A

AMENDMENT NO. 1

£	REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE  SECURITIES EXCHANGE ACT OF 1934
	OR
R	ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2012
	OR
£	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	OR
£	SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	Date of event requiring this shell company report
	FOR THE TRANSITION PERIOD FROM              TO

COMMISSION FILE NUMBER 000-49751

________________

Catalyst Paper Corporation

(Exact name of Registrant as specified in its charter)

N/A

(Translation of Registrant’s name into English)

British Columbia, Canada

(Jurisdiction of incorporation or organization)

2^nd Floor, 3600 Lysander Lane

Richmond

British Columbia, Canada V7B 1C3

(Address of principal executive offices)

________________

Securities registered or to be registered pursuant to Section 12(b) of the Act:

None.

Securities registered or to be registered pursuant to Section 12(g) of the Act:

Common Shares.

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:

None.

The number of outstanding shares of each of the issuer’s classes of capital or common stock as of

December 31, 2012 was:

14,527,571

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes £ No R

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes £ No R

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes R No £

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes R No £

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer   £ Accelerated filer £ Non-accelerated filer R

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP   R	International Financial Reporting Standards as issued	Other £
	by the International Accounting Standards Board  £

Indicate by check which financial statement item the registrant has elected to follow. Item 17 R Item 18 £

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes £ No R

EXPLANATORY NOTE

This Amendment No. 1 to the Registrant’s Annual Report on Form 20-F for the fiscal year ended December 31, 2012, originally filed with the Securities and Exchange Commission on March 19, 2013 (the “Annual Report”), is being filed solely for the purposes of furnishing Interactive Data File disclosure as Exhibit 101 in accordance with Rule 405 of Regulation S-T.

The Exhibit referred to below was not previously furnished.

Other than as expressly set forth above, this Form 20-F/A does not, and does not purport to, amend, update or restate the information in any other item of the Annual Report, or reflect any events that have occurred after the Annual Report was originally filed.

PART III

ITEM 19 EXHIBITS

The exhibit listed on the Exhibit Index hereof is furnished herewith.

Exhibit

101 The following financial information from our Annual Report on Form 20-F for the year ended December 31, 2012, filed with the Securities and Exchange Commission on March 19, 2013, formatted in Extensible Business Reporting Language (XBRL): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Operations; (ii) Consolidated Statements of Changes in Equity; (iv) Consolidated Statements of Comprehensive Income (Loss); (v) Consolidated Statements of Cash Flows; and (vi) Notes to the Consolidated Financial Statements (furnished herewith).

SIGNATURES

The Registrant certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused this annual report to be signed on its behalf by the undersigned, thereto duly authorized.

CATALYST PAPER CORPORATION
By:	\s\ Kevin Clarke
	Name:	Kevin J. Clarke
	Title:	Chief Executive Officer

Date: April 19, 2013

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RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2012

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

31. RELATED PARTY TRANSACTIONS

Third Avenue Management LLC (TAM), which had control or direction over a significant number of the company’s common shares since October 2006, disposed of its entire investment in the company on February 16, 2012, thereby ceasing to be a related party.

The company undertook certain transactions with companies affiliated with a former director. Payments for raw materials were made to Aspen Group, Flavelle Sawmill, and Mill and Timber. These transactions were in the normal course of business and were on the same terms to those accorded to third parties. Mr. Thomas S. Chambers served as director of these three companies during his tenure as director of the company. Mr. Chambers ceased to be a related party of the company when he ceased to be a director of the company on September 13, 2012. For the nine months ended September 30, 2012, the company paid aggregate fees of $2.7 million (2011 - $4.3 million; 2010 - $3.6 million) primarily for obligations under a building lease, purchasing chips and hog fuel, services related to trucking chips, and other consulting services.

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STOCK-BASED COMPENSATION PLANS (Details 3) (CAD)	12 Months Ended
	Dec. 31, 2012
Number of shares, Beginning of year	3,214,686
Number of shares, Granted	0
Number of shares, Vested/exercised	0
Number of shares, Expired or cancelled	(3,214,686)
Number of shares, End of year	0
Weighted average fair value at grant date (in dollars per share), Beginning of year	0.11
Weighted average fair value at grant date (in dollars per share), Granted	0
Weighted average fair value at grant date (in dollars per share), Vested/exercised	0
Weighted average fair value at grant date (in dollars per share), Expired or cancelled	0.11
Weighted average fair value at grant date (in dollars per share), End of year	0

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EMPLOYEE FUTURE BENEFITS (Details 4) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012 Pension Plans, Defined Benefit [Member]	Dec. 31, 2012 Other Benefit Plans [Member]	Sep. 30, 2012 Predecessor [Member] Pension Plans, Defined Benefit [Member]	Dec. 31, 2011 Predecessor [Member] Pension Plans, Defined Benefit [Member]	Sep. 30, 2012 Predecessor [Member] Other Benefit Plans [Member]	Dec. 31, 2011 Predecessor [Member] Other Benefit Plans [Member]
Amortization of employee future benefits	0	0	6.6	8.5	(2.7)	(3.3)
Net gain (loss)	4.6	2.0	(17.4)	(41.4)	(14.3)	(5.5)
Net amount recognized in other comprehensive income (loss)	4.6	2.0	(10.8)	(32.9)	(17.0)	(8.8)

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OTHER ASSETS (Tables)

12 Months Ended

Dec. 31, 2012

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Assets, Noncurrent [Table Text Block]

The components of other assets are as follows:

	Successor				Predecessor
	As at December 31		As at September 30		As at December 31
	2012		2012		2011
Deferred financing costs	$	9.0	$	9.8	$	11.8
Deferred charges and other		1.8		1.9		9.9
Derivative financial instruments		–		–		2.5
Accrued benefit asset – pension plan (note 19)		0.2		0.2		0.2
	$	11.0	$	11.9	$	24.4

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RELATED PARTY TRANSACTIONS (Details Textual) (CAD) In Millions, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Related Party Transaction, Amounts of Transaction	2.7	4.3	3.6

XML

VARIABLE INTEREST ENTITIES (Tables)

12 Months Ended

Dec. 31, 2012

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Schedule Of Variable Interest Entities Comprehensive Income Loss [Table Text Block]

Condensed financial information with respect to PREI is as follows:

	Successor			Predecessor
	Three months ended December 31			Nine months ended September 30			Years ended December 31
	2012			2012			2011			2010
Condensed statements of earnings (loss)
Sales – affiliate 1	$	4.7		$	15.6		$	23.4		$	20.5
Cost of sales, excluding depreciation and amortization		2.1			5.1			7.0			6.5
Depreciation and amortization		1.9			3.9			13.4			7.4
		4.0			9.0			20.4			13.9
Operating earnings		0.7			6.6			3.0			6.6
Interest expense		(2.4	)		(7.3	)		(8.9	)		(8.8	)
Interest expense – affiliate 1		(0.9	)		(2.5	)		(2.4	)		(2.1	)
Other income (expense), net		(0.3	)		(4.0	)		–			0.1
Reorganization items, net		(1.3	)		55.6			–			–
Income tax recovery (expense)		1.1			(11.9	)		3.0			1.6
Net earnings (loss)		(3.1	)		36.5			(5.3	)		(2.6	)
Other comprehensive income		–			0.1			0.1			0.2
Total comprehensive income (loss) 2	$	(3.1	)	$	36.6		$	(5.2	)	$	(2.4	)

¹ Balances with Catalyst Paper Energy Holdings Inc., a subsidiary of Catalyst Paper Corporation.

² 50% is included in the company’s non-controlling interest (deficit) balances.

Schedule Of Variable Interest Entities Condensed Balance Sheet [Table Text Block]

	Successor						Predecessor
	As at December 31			As at September 30			As at December 31
	2012			2012			2011
Condensed balance sheets
Current assets
Cash and cash equivalents	$	6.6		$	6.9		$	6.0
Other		2.7			3.4			3.1
Property, plant and equipment		147.0			145.9			95.5
	$	156.3		$	156.2		$	104.6
Current liabilities
Accounts payable and accrued liabilities	$	13.1		$	8.5		$	4.7
Long-term debt (note 18)		113.8			113.8			113.8
Long-term debt – affiliate 1		20.8			20.8			20.8
Deferred income taxes		23.6			24.6			12.7
Deficit 2		(15.0	)		(11.5	)		(47.4	)
	$	156.3		$	156.2		$	104.6

¹ Balances with Catalyst Paper Energy Holdings Inc., a subsidiary of Catalyst Paper Corporation.

² 50% is included in the company’s non-controlling interest (deficit) balances.

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OTHER LONG-TERM OBLIGATIONS (Details 1) (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012 Predecessor [Member]	Dec. 31, 2011 Predecessor [Member]
Balance, beginning of period	6.2	8.5	7.9
Liabilities settled	(0.1)	0	(0.7)
Liabilities derecognized	0	(2.3)	0
Accretion expense	0	0	0.1
Revised estimates of future cash flows	0	0	1.2
Balance, end of period	6.1	6.2	8.5

XML

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2012

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Schedule of Condensed Balance Sheet [Table Text Block]

Supplemental Consolidating Balance Sheet

As at December 31, 2012 (successor)

	Catalyst Paper Corporation			Subsidiary guarantors		Subsidiary non-guarantors			Eliminating entries			Consolidated Catalyst Paper Corporation
Assets
Current assets
Cash and cash equivalents	$	0.8		$	8.9	$	6.9		$	–		$	16.6
Restricted Cash		0.7			–		–			–			0.7
Accounts receivable		2.3			111.0		0.7			–			114.0
Inventories		–			125.0		–			–			125.0
Prepaids and other		0.7			7.5		0.7			–			8.9
Assets held for sale		–			34.3		–			–			34.3
		4.5			286.7		8.3			–			299.5
Property, plant and equipment		387.1			76.0		148.5			–			611.6
Goodwill		56.7			–		–			–			56.7
Advances to related companies		234.2			348.2		(0.8	)		(581.6	)		–
Investments, net of equity loss in related companies		93.7			–		–			(93.7	)		–
Other assets		24.3			9.7		0.6			(23.6	)		11.0
	$	800.5		$	720.6	$	156.6		$	(698.9	)	$	978.8
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	27.9		$	76.0	$	9.9		$	–		$	113.8
Current portion of long-term debt		6.5			0.1		–			–			6.6
Liabilities associated with assets held for sale		–			15.2		–			–			15.2
		34.4			91.3		9.9			–			135.6
Long-term debt		308.2			–		113.8			–			422.0
Advances from related companies		320.4			236.6		24.6			(581.6	)		–
Employee future benefits		9.7			280.0		–			–			289.7
Other long-term obligations		5.2			3.7		–			–			8.9
Deferred income taxes		–			–		23.6			(23.6	)		–
		677.9			611.6		171.9			(605.2	)		856.2
Equity (Deficiency)
Shareholders’ equity (Deficiency)
Common stock		144.9			–		–			–			144.9
Additional paid-in capital		–			–		–			–			–
Retained earnings (deficit)		(35.2	)		3.5		(4.8	)		1.3			(35.2	)
Accumulated other comprehensive income (loss)		6.6			5.8		–			(5.8	)		6.6
Predecessor equity		–			99.7		(10.5	)		(89.2	)		–
		116.3			109.0		(15.3	)		(93.7	)		116.3
Non-controlling interest (deficit)		6.3			–		–			–			6.3
		122.6			109.0		(15.3	)		(93.7	)		122.6
	$	800.5		$	720.6	$	156.6		$	(698.9	)	$	978.8

As at September 30, 2012 (successor) 

	Catalyst Paper Corporation		Subsidiary guarantors		Subsidiary non-guarantors			Eliminating entries			Consolidated Catalyst Paper Corporation
Assets
Current assets
Cash and cash equivalents	$	0.3	$	4.8	$	7.1		$	–		$	12.2
Restricted cash		3.6		0.1		–			–			3.7
Accounts receivable		1.9		138.8		0.1			–			140.8
Inventories		–		131.5		–			–			131.5
Prepaids and other		0.3		12.3		0.4			–			13.0
Assets held for sale		–		56.2		–			–			56.2
		6.1		343.7		7.6			–			357.4
Property, plant and equipment		390.5		76.2		147.4			–			614.1
Goodwill		56.7		–		–			–			56.7
Advances to related companies		239.7		295.9		1.0			(536.6	)		–
Investments, net of equity loss in related companies		89.2		–		–			(89.2	)		–
Other assets		25.1		10.8		0.6			(24.6	)		11.9
	$	807.3	$	726.6	$	156.6		$	(650.4	)	$	1,040.1
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	15.7	$	75.6	$	6.2		$	–		$	97.5
Current portion of long-term debt		6.6		0.1		–			–			6.7
Liabilities associated with assets held for sale		–		14.9		(0.1	)		–			14.8
		22.3		90.6		6.1			–			119.0
Long-term debt		345.1		–		113.8			–			458.9
Advances from related companies		271.3		242.7		22.6			(536.6	)		–
Employee future benefits		10.4		290.0		–			–			300.4
Other long-term obligations		5.4		3.6		–			–			9.0
Deferred income taxes		–		–		24.6			(24.6	)		–
		654.5		626.9		167.1			(561.2	)		887.3
Equity (Deficiency)
Shareholders’ equity (Deficiency)
Common stock		144.9		–		–			–			144.9
Additional paid-in capital		–		–		–			–			–
Retained earnings (deficit)		–		–		–			–			–
Accumulated other comprehensive income (loss)		–		–		–			–			–
Predecessor equity		–		99.7		(10.5	)		(89.2	)		–
		144.9		99.7		(10.5	)		(89.2	)		144.9
Non-controlling interest (deficit)		7.9		–		–			–			7.9
		152.8		99.7		(10.5	)		(89.2	)		152.8
	$	807.3	$	726.6	$	156.6		$	(650.4	)	$	1,040.1

As at December 31, 2011 (predecessor) 

	Catalyst Paper Corporation			Subsidiary guarantors			Subsidiary non-guarantors			Eliminating entries			Consolidated Catalyst Paper Corporation
Assets
Current assets
Cash and cash equivalents	$	1.5		$	17.4		$	6.2		$	–		$	25.1
Accounts receivable		7.9			126.7			0.3			–			134.9
Inventories		–			146.9			–			–			146.9
Prepaids and other		13.4			6.1			0.5			–			20.0
		22.8			297.1			7.0			–			326.9
Property, plant and equipment		226.2			63.1			97.0			–			386.3
Advances to related companies		255.1			237.3			2.1			(494.5	)		–
Investments in related companies		(139.6	)		–			–			139.6			–
Other assets		33.9			–			0.7			(10.2	)		24.4
	$	398.4		$	597.5		$	106.8		$	(365.1	)	$	737.6
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	40.8		$	129.1		$	4.6		$	–		$	174.5
Current portion of long-term debt		466.6			0.2			–			–			466.8
		507.4			129.3			4.6			–			641.3
Long-term debt		261.7			–			113.8			–			375.5
Advances from related companies		217.2			253.9			23.4			(494.5	)		–
Employee future benefits		14.3			291.4			–			–			305.7
Other long-term obligations		5.5			13.7			–			–			19.2
Deferred income taxes		–			1.0			12.8			(10.2	)		3.6
Deferred credits		9.6			–			–			–			9.6
		1,015.7			689.3			154.6			(504.7	)		1,354.9
Equity
Shareholders’ equity
Common stock		1,035.2			623.7			(33.3	)		(590.4	)		1,035.2
Additional paid-in capital		16.6			222.1			4.7			(226.8	)		16.6
Retained earnings (deficit)		(1,556.0	)		(894.2	)		(18.4	)		912.6			(1,556.0	)
Accumulated other comprehensive income (loss)		(89.4	)		(43.4	)		(0.8	)		44.2			(89.4	)
		(593.6	)		(91.8	)		(47.8	)		139.6			(593.6	)
Non-controlling interest (deficit)		(23.7	)		–			–			–			(23.7	)
		(617.3	)		(91.8	)		(47.8	)		139.6			(617.3	)
	$	398.4		$	597.5		$	106.8		$	(365.1	)	$	737.6

CONSOLIDATED BALANCE SHEETS

(In millions of Canadian dollars)

	Successor					Predecessor
	As at  December 31			As at  September 30		As at  December 31			As at December 31
	2012			2012		2011			2010			2009			2008
Assets
Current assets
Cash and cash equivalents	$	16.6		$	12.2	$	25.1		$	95.4		$	83.1		$	5.0
Restricted cash		0.7			3.7		–			–			–			–
Accounts receivable		114.0			140.8		134.9			120.6			101.5			221.7
Inventories		125.0			131.5		146.9			139.9			178.3			211.4
Prepaids and other		8.9			13.0		20.0			27.7			25.2			32.8
Assets held for sale		34.3			56.2		–			–			–			–
		299.5			357.4		326.9			383.6			388.1			470.9
Property, plant and equipment		611.6			614.1		386.3			1,285.6			1,664.7			1,854.4
Goodwill		56.7			56.7		–			–			–			–
Other assets		11.0			11.9		24.4			27.0			38.0			65.0
	$	978.8		$	1,040.1	$	737.6		$	1,696.2		$	2,090.8		$	2,390.3
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	113.8		$	97.5	$	174.5		$	171.6		$	173.3		$	269.4
Current portion of long-term debt		6.6			6.7		466.8			27.0			1.0			75.8
Liabilities associated with assets held for sale		15.2			14.8		–			–			–			–
		135.6			119.0		641.3			198.6			174.3			345.2
Long-term debt		422.0			458.9		375.5			783.9			774.6			894.1
Employee future benefits		289.7			300.4		305.7			269.1			294.6			263.2
Other long-term obligations		8.9			9.0		19.2			20.2			13.4			13.3
Deferred income taxes/deferred credits		–			–		13.2			21.0			38.3			67.9
		856.2			887.3		1,354.9			1,292.8			1,295.2			1,583.7
Equity
Shareholders’ equity (deficit)
Common stock		144.9			144.9		1,035.2			1,035.0			1,035.0			1,035.0
Additional paid-in-capital		–			–		16.6			16.6			16.4			14.6
Retained earnings (deficit)		(35.2	)		–		(1,556.0	)		(582.0	)		(185.1	)		(180.7	)
Accumulated other comprehensive  income (loss)		6.6			–		(89.4	)		(46.1	)		(52.7	)		(46.4	)
		116.3			144.9		(593.6	)		423.5			813.6			822.5
Non-controlling interest (deficit)		6.3			7.9		(23.7	)		(20.1	)		(18.0	)		(15.9	)
		122.6			152.8		(617.3	)		403.4			795.6			806.6
	$	978.8		$	1,040.1	$	737.6		$	1,696.2		$	2,090.8		$	2,390.3

Schedule of Condensed Income Statement [Table Text Block]

Supplemental Consolidating Statement of Earnings (Loss)

For the three months ended December 31, 2012 (successor) 

	Catalyst Paper Corporation			Subsidiary guarantors			Subsidiary non-guarantors			Eliminating entries			Consolidated Catalyst Paper Corporation
Sales	$	–		$	260.6		$	4.6		$	(4.7	)	$	260.5
Operating expenses
Cost of sales, excluding depreciation and amortization		4.4			243.9			2.0			(4.7	)		245.6
Depreciation and amortization		8.8			2.2			1.9			–			12.9
Selling, general and administrative		4.6			3.1			–			–			7.7
		17.8			249.2			3.9			(4.7	)		266.2
Operating earnings (loss)		(17.8	)		11.4			0.7			–			(5.7	)
Interest expense, net		(4.6	)		(3.7	)		(3.3	)		–			(11.6	)
Foreign exchange loss on  long-term debt		(3.2	)		–			–			–			(3.2	)
Equity earnings in Partnership		8.8			–			–			(8.8	)		–
Other income (expense), net		1.4			(1.1	)		(0.2	)		–			0.1
Earnings (loss) before reorganization items and income taxes		(15.4	)		6.6			(2.8	)		(8.8	)		(20.4	)
Reorganization items, net		(10.6	)		8.7			(1.3	)		–			(3.2	)
Income (loss) before income taxes		(26.0	)		15.3			(4.1	)		(8.8	)		(23.6	)
Income tax expense (recovery)		0.7			0.6			(1.1	)		–			0.2
Earnings (loss) from continuing operations		(26.7	)		14.7			(3.0	)		(8.8	)		(23.8	)
Earnings (loss) from discontinued operations net of tax		(12.9	)		(11.5	)		(1.4	)		12.9			(12.9	)
Net earnings (loss)		(39.6	)		3.2			(4.4	)		4.1			(36.7	)
Net (earnings) loss attributable to non-controlling interest		1.5			–			–			–			1.5
Net earnings (loss) before equity in earnings (loss) of subsidiaries		(38.1	)		3.2			(4.4	)		4.1			(35.2	)
Equity in earnings (loss) of subsidiaries		2.9			–			–			(2.9	)		–
Net earnings (loss) attributable  to the company	$	(35.2	)	$	3.2		$	(4.4	)	$	1.2		$	(35.2	)

For the nine months ended September 30, 2012 (predecessor) 

	Catalyst Paper Corporation			Subsidiary guarantors			Subsidiary non-guarantors			Eliminating entries			Consolidated Catalyst Paper Corporation
Sales	$	–		$	797.7		$	15.6		$	(15.6	)	$	797.7
Operating expenses
Cost of sales, excluding depreciation and amortization		13.2			715.3			5.1			(15.6	)		718.0
Depreciation and amortization		15.4			4.1			3.9			–			23.4
Selling, general and administrative		13.8			12.4			–			–			26.2
Restructuring		5.3			–			–			–			5.3
		47.7			731.8			9.0			(15.6	)		772.9
Operating earnings (loss)		(47.7	)		65.9			6.6			–			24.8
Interest expense, net		(30.5	)		(20.0	)		(9.8	)		–			(60.3	)
Foreign exchange gain on long-term debt		24.0			–			–			–			24.0
Equity earnings in Partnership		79.8			–			–			(79.8	)		–
Other income (expense), net		(53.1	)		54.6			51.6			(55.7	)		(2.6	)
Earnings (loss) before reorganization items and income taxes		(27.5	)		100.5			48.4			(135.5	)		(14.1	)
Reorganization items, net		512.9			98.4			55.6			–			666.9
Income (loss) before income taxes		485.4			198.9			104.0			(135.5	)		652.8
Income tax expense (recovery)		8.4			(21.4	)		11.9			–			(1.1	)
Earnings (loss) from continuing operations		477.0			220.3			92.1			(135.5	)		653.9
Earnings (loss) from discontinued operations, net of tax		(3.6	)		(4.1	)		0.5			3.6			(3.6	)
Net earnings (loss)		473.4			216.2			92.6			(131.9	)		650.3
Net (earnings) loss attributable to non-controlling interest		(31.9	)		–			–			–			(31.9	)
Net earnings (loss) before equity in earnings (loss) of subsidiaries		441.5			216.2			92.6			(131.9	)		618.4
Equity in earnings (loss) of subsidiaries		176.9			–			–			(176.9	)		–
Net earnings (loss) attributable  to the company	$	618.4		$	216.2		$	92.6		$	(308.8	)	$	618.4

For the year ended December 31, 2011 (predecessor) 

	Catalyst Paper Corporation			Subsidiary guarantors			Subsidiary non-guarantors			Eliminating entries			Consolidated Catalyst Paper Corporation
Sales	$	–		$	1,079.7		$	23.4		$	(23.4	)	$	1,079.7
Operating expenses
Cost of sales, excluding depreciation and amortization		20.4			966.7			7.0			(23.4	)		970.7
Depreciation and amortization		66.8			25.3			13.4			–			105.5
Selling, general and administrative		20.1			20.1			0.1			–			40.3
Restructuring		5.9			–			–			–			5.9
Impairment and other closure costs		496.2			165.6			–			–			661.8
		609.4			1,177.7			20.5			(23.4	)		1,784.2
Operating earnings (loss)		(609.4	)		(98.0	)		2.9			–			(704.5	)
Interest expense, net		(33.3	)		(28.6	)		(11.3	)		–			(73.2	)
Foreign exchange loss on long-term debt		(9.7	)		–			–			–			(9.7	)
Equity earnings in Partnership		61.8			–			–			(61.8	)		–
Other income (expense), net		5.7			(8.1	)		0.3			–			(2.1	)
Income (loss) before income taxes		(584.9	)		(134.7	)		(8.1	)		(61.8	)		(789.5	)
Income tax expense (recovery)		(57.8	)		52.3			(2.9	)		–			(8.4	)
Earnings (loss) from continuing operations		(527.1	)		(187.0	)		(5.2	)		(61.8	)		(781.1	)
Earnings (loss) from discontinued operations, net of tax		(195.5	)		(195.5	)		–			195.5			(195.5	)
Net earnings (loss)		(722.6	)		(382.5	)		(5.2	)		133.7			(976.6	)
Net (earnings) loss attributable to non-controlling interest		2.6			–			–			–			2.6
Net earnings (loss) before equity in earnings (loss) of subsidiaries	$	(720.0	)	$	(382.5	)	$	(5.2	)	$	133.7		$	(974.0	)
Equity in earnings (loss) of subsidiaries		(254.0	)		–			–			254.0			–
Net earnings (loss) attributable to the company	$	(974.0	)	$	(382.5	)	$	(5.2	)	$	387.7		$	(974.0	)

For the year ended December 31, 2010 (predecessor) 

	Catalyst Paper Corporation			Subsidiary guarantors			Subsidiary non-guarantors			Eliminating entries			Consolidated Catalyst Paper Corporation
Sales	$	–		$	1,051.5		$	20.4		$	(20.5	)	$	1,051.4
Operating expenses
Cost of sales, excluding depreciation and amortization		29.1			915.0			6.5			(20.5	)		930.1
Depreciation and amortization		69.5			32.8			7.4			–			109.7
Selling, general and administrative		22.6			20.8			–			–			43.4
Restructuring		–			25.3			–			–			25.3
Impairment and other closure costs		232.8			61.7			–			–			294.5
		354.0			1,055.6			13.9			(20.5	)		1,403.0
Operating earnings (loss)		(354.0	)		(4.1	)		6.5			–			(351.6	)
Interest expense, net		(32.7	)		(28.4	)		(10.8	)		–			(71.9	)
Foreign exchange gain on long-term debt		27.6			–			–			–			27.6
Equity earnings in Partnership		37.0			–			–			(37.0	)		–
Other income (expense), net		(11.4	)		8.9			(0.1	)		–			(2.6	)
Earnings (loss) before income taxes		(333.5	)		(23.6	)		(4.4	)		(37.0	)		(398.5	)
Income tax recovery		(13.3	)		(4.9	)		(1.6	)		–			(19.8	)
Earnings (loss) from continuing operations		(320.2	)		(18.7	)		(2.8	)		(37.0	)		(378.7	)
Loss from discontinued operations, net of tax		(19.5	)		(19.5	)		–			19.5			(19.5	)
Net earnings (loss)		(339.7	)		(38.2	)		(2.8	)		(17.5	)		(398.2	)
Net (earnings) loss attributable to non-controlling interest		1.3			–			–			–			1.3
Net earnings (loss) before equity in earnings (loss) of subsidiaries		(338.4	)		(38.2	)		(2.8	)		(17.5	)		(396.9	)
Equity in earnings (loss) of subsidiaries		(58.5	)		–			–			58.5			–
Net earnings (loss) attributable to the company	$	(396.9	)	$	(38.2	)	$	(2.8	)	$	41.0		$	(396.9	)

CONSOLIDATED STATEMENTS OF EARNINGS

(In millions of Canadian dollars)

	Successor			Predecessor
	Three months ended December 31			Nine months ended September 30			Years ended December 31
	2012			2012			2011			2010			2009			2008
Sales	$	260.5		$	797.7		$	1,079.7		$	1,051.4		$	1,077.7		$	1,696.9
Operating expenses
Cost of sales, excluding depreciation and amortization		245.6			718.0			970.7			930.1			890.0			1,456.5
Depreciation and amortization		12.9			23.4			105.5			109.7			137.3			159.8
Selling, general and administrative		7.7			26.2			40.3			43.4			44.8			46.9
Restructuring and change-of-control		–			5.3			5.9			25.3			17.9			30.1
Impairment		–			–			661.8			294.5			17.4			151.0
		266.2			772.9			1,784.2			1,403.0			1,107.4			1,844.3
Operating earnings (loss)		(5.7	)		24.8			(704.5	)		(351.6	)		(29.7	)		(147.4	)
Interest expense, net		(11.6	)		(60.3	)		(73.2	)		(71.9	)		(69.1	)		(74.8	)
Gain on cancellation of long-term debt		–			–			–			–			30.7			–
Foreign exchange gain (loss) on long-term debt		(3.2	)		24.0			(9.7	)		27.6			75.3			(82.2	)
Other income (expense), net		0.1			(2.6	)		(2.1	)		(2.6	)		(28.6	)		(15.7	)
Loss before reorganization items and income taxes		(20.4	)		(14.1	)		(789.5	)		(398.5	)		(21.4	)		(320.1	)
Reorganization items, net		(3.2	)		666.9			–			–			–			–
Income (loss) before income taxes		(23.6	)		652.8			(789.5	)		(398.5	)		(21.4	)		(320.1	)
Income tax expense (recovery)		0.2			(1.1	)		(8.4	)		(19.8	)		(23.1	)		(90.7	)
Earnings (loss) from continuing operations		(23.8	)		653.9			(781.1	)		(378.7	)		1.7			(229.4	)
Gain (loss) from discontinued operations net of tax		(12.9	)		(3.6	)		(195.5	)		(19.5	)		(7.3	)		10.4
Net earnings (loss)		(36.7	)		650.3			(976.6	)		(398.2	)		(5.6	)		(219.0	)
Net (earnings) loss attributable to non-controlling interest		1.5			(31.9	)		2.6			1.3			1.2			(0.8	)
Net earnings (loss) attributable to the Company	$	(35.2	)	$	618.4		$	(974.0	)	$	(396.9	)	$	(4.4	)	$	(219.8	)

Schedule of Condensed Cash Flow Statement [Table Text Block]

Supplemental Consolidating Statement of Cash Flows

For the three months ended December 31, 2012 (successor) 

	Catalyst Paper Corporation			Subsidiary guarantors			Subsidiary non-guarantors			Eliminating entries			Consolidated Catalyst Paper Corporation
Cash flows provided (used) by:
Operations
Cash flows provided (used) by operations	$	(90.5	)	$	160.9		$	(22.2	)	$	3.9		$	52.1
Investing
Additions to property, plant and equipment		(4.2	)		(3.2	)		(3.0	)		–			(10.4	)
Proceeds from sale of property, plant and equipment		–			0.8			–			–			0.8
Decrease in restricted cash		2.9			0.5			–			–			3.4
Cash flows provided (used) by operations		(1.3	)		(1.9	)		(3.0	)		–			(6.2	)
Financing
Increase (decrease) in advances to related companies		132.3			(153.8	)		25.4			(3.9	)		–
Decrease in revolving loan		(40.0	)		–			–			–			(40.0	)
Distribution received (paid)		–			0.4			(0.4	)		–			–
		92.3			(153.4	)		25.0			(3.9	)		(40.0	)
Cash and cash equivalents, increase (decrease) in the period		0.5			5.6			(0.2	)		–			5.9
Cash and cash equivalents, beginning of period		0.3			5.2			7.1			–			12.6
Cash and cash equivalents, end of period	$	0.8		$	10.8		$	6.9		$	–		$	18.5

For the nine months ended September 30, 2012 (successor) 

	Catalyst Paper Corporation			Subsidiary guarantors			Subsidiary non-guarantors			Eliminating entries			Consolidated  Catalyst Paper Corporation
Cash flows provided (used) by:
Operations
Cash flows provided (used) by operations	$	119.1		$	27.5		$	38.2		$	(228.8	)	$	(44.0	)
Investing
Additions to property, plant and equipment		(4.9	)		(4.6	)		(2.7	)		–			(12.2	)
Proceeds from sale of property, plant and equipment		5.5			6.0			–			–			11.5
Increase in restricted cash		(3.6	)		(2.8	)		–			–			(6.4	)
Decrease in other assets		2.6			1.0			0.1			–			3.7
Cash flows used by investing activities		(0.4	)		(0.4	)		(2.6	)		–			(3.4	)
Financing
Increase (decrease) in advances to related companies		(155.0	)		(95.4	)		21.6			228.8			–
Increase in revolving loan		16.0			–			–			–			16.0
Proceeds on issuance of senior secured notes		33.1			–			–			–			33.1
Deferred financing costs		(9.3	)		–			–			–			(9.3	)
DIP financing costs		(3.8	)		–			–			–			(3.8	)
Decrease in other long-term debt		(0.7	)		(0.2	)		–			–			(0.9	)
Share issuance costs		(0.2	)		–			–			–			(0.2	)
Distribution received (paid)		–			56.3			(56.3	)		–			–
Cash flows provided (used) by financing activities		(119.9	)		(39.3	)		(34.7	)		228.8			34.9
Cash and cash equivalents, increase (decrease) in the period		(1.2	)		(12.2	)		0.9			–			(12.5	)
Cash and cash equivalents, beginning of the period		1.5			17.4			6.2			–			25.1
Cash and cash equivalents, end of period	$	0.3		$	5.2		$	7.1		$	–		$	12.6

For the year ended December 31, 2011 (predecessor) 

	Catalyst Paper Corporation			Subsidiary guarantors			Subsidiary non-guarantors			Eliminating entries			Consolidated  Catalyst Paper Corporation
Cash flows provided (used) by:
Operations
Cash flows provided (used) by operations	$	(427.3	)	$	(37.2	)	$	5.3		$	387.7		$	(71.5	)
Investing
Additions to property, plant and equipment		(7.8	)		(11.0	)		(0.9	)		–			(19.7	)
Proceeds from sale of property, plant and equipment		–			1.2			–			–			1.2
Decrease (increase) in other assets		(1.2	)		2.0			–			–			0.8
Cash flows used by investing activities		(9.0	)		(7.8	)		(0.9	)		–			(17.7	)
Financing
Increase in advances to related companies		352.3			131.3			–			(483.6	)		–
Increase (decrease) in long-term obligations		–			0.2			(0.2	)		–			–
Increase in revolving loan		48.0			–			–			–			48.0
Redemption of senior notes		(25.8	)		–			–			–			(25.8	)
Deferred financing costs		(2.4	)		–			–			–			(2.4	)
Decrease in other long-term debt		(0.9	)		–			–			–			(0.9	)
Distribution paid		–			(94.1	)		(1.8	)		95.9			–
Cash flows provided (used) by financing activities		207.2			37.4			(2.0	)		(387.7	)		18.9
Cash and cash equivalents, increase (decrease) during year		(65.1	)		(7.6	)		2.4			–			(70.3	)
Cash and cash equivalents, beginning of year		66.6			25.0			3.8			–			95.4
Cash and cash equivalents, end of year	$	1.5		$	17.4		$	6.2		$	–		$	25.1

For the year ended December 31, 2010 (predecessor) 

	Catalyst Paper Corporation			Subsidiary guarantors			Subsidiary non-guarantors			Eliminating entries			Consolidated  Catalyst Paper Corporation
Cash flows provided (used) by:
Operations
Cash flows provided (used) by operations	$	(153.9	)	$	66.1		$	2.7		$	41.0		$	(44.1	)
Investing
Additions to property, plant and equipment		(2.9	)		(6.3	)		(2.0	)		–			(11.2	)
Proceeds from sale of property, plant and equipment		0.4			7.5			–			–			7.9
Decrease (increase) in other assets		(1.7	)		0.5			–			–			(1.2	)
Cash flows provided (used) by investing activities		(4.2	)		1.7			(2.0	)		–			(4.5	)
Financing
Increase (decrease) in advances to related companies		99.5			41.5			0.5			(141.5	)		–
Increase (decrease) in long-term obligations		–			1.5			(1.5	)		–			–
Increase (decrease) in revolving loan		–			(14.9	)		–			0.4			(14.5	)
Proceeds on issuance of senior secured notes		98.4			–			–			–			98.4
Proceeds on termination of debt hedges		(8.3	)		–			–			–			(8.3	)
Deferred financing costs		(4.5	)		–			–			–			(4.5	)
Settlement on purchase of senior notes		(9.2	)		–			–			–			(9.2	)
Decrease in other long-term debt		–			(1.0	)		–			–			(1.0	)
Dividends paid		–			(12.6	)		–			12.6			–
Distribution paid		–			(85.7	)		(1.8	)		87.5			–
Repayment of revolving operating loan		(14.5	)		14.5			–			–			–
Cash flows provided (used) by financing activities		161.4			(56.7	)		(2.8	)		(41.0	)		60.9
Cash and cash equivalents, increase (decrease) during year		3.3			11.1			(2.1	)		–			12.3
Cash and cash equivalents, beginning of year		63.3			13.9			5.9			–			83.1
Cash and cash equivalents, end of year	$	66.6		$	25.0		$	3.8		$	–		$	95.4

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions of Canadian dollars)

	Successor			Predecessor
	Three months ended December 31			Nine months ended September 30			Years ended December 31
	2012			2012			2011			2010			2009			2008
Cash flows provided (used) by:
Operations
Net earnings (loss)	$	(36.7	)	$	650.3		$	(976.6	)	$	(398.2	)	$	(5.6	)	$	(219.0	)
Items not requiring (providing) cash
Depreciation and amortization		12.9			23.4			112.4			119.3			146.6			165.8
Impairment and other closure costs		8.2			3.3			823.6			294.5			17.4			151.0
Deferred income taxes		0.1			(0.7	)		(7.6	)		(16.1	)		(26.6	)		(92.4	)
Foreign exchange loss (gain) on long-term debt		3.2			(24.0	)		9.7			(27.6	)		(75.3	)		82.2
Non-cash reorganization items		2.4			(707.4	)		–			–			–			–
Non-cash interest on compromised notes		–			48.4			–			–			–			–
Gain on cancellation of long-term debt		–			–			–			(0.6	)		(30.7	)		–
Employee future benefits, expense over (under) cash contributions		(3.4	)		(8.4	)		(8.0	)		(2.4	)		4.3			2.9
Increase (decrease) in other long-term obligations		(0.1	)		–			(3.1	)		(4.2	)		(0.5	)		(5.1	)
Loss (gain) on disposal of property, plant and equipment		0.4			(6.7	)		(0.1	)		(7.2	)		3.9			(0.4	)
Other		0.2			2.6			(1.8	)		10.9			4.6			(13.5	)
Changes in non-cash working capital		64.9			(24.8	)		(20.0	)		(12.5	)		65.5			6.6
Cash flows provided (used) by operations		52.1			(44.0	)		(71.5	)		(44.1	)		103.6			78.1
Investing
Acquisition of Snowflake newsprint mill		–			–			–			–			–			(172.2	)
Additions to property, plant and equipment		(10.4	)		(12.2	)		(19.7	)		(11.2	)		(11.5	)		(41.9	)
Proceeds from sale of property, plant and equipment		0.8			11.5			1.2			7.9			4.5			2.2
Proceeds from termination of interest rate swaps		–			–			–			–			–			7.6
Decrease (increase) in restricted cash		3.4			(6.4	)		–			–			–			–
Decrease (increase) in other assets		–			3.7			0.8			(1.2	)		4.1			(1.0	)
Cash flows provided (used) by investing activities		(6.2	)		(3.4	)		(17.7	)		(4.5	)		(2.9	)		(205.3	)
Financing
Issue of shares, net of share issue costs		–			–			–			–			–			121.1
Share issue costs		–			(0.2	)		–			–			–			–
Increase (decrease) in revolving loan and loan payable		(40.0	)		16.0			48.0			(14.5	)		(45.6	)		60.1
Repayment of revolving operating loan		–			–			–			–			–			(47.1	)
Repayment of long-term debt		–			–			(25.8	)		–			(75.7	)		–
Proceeds from long-term debt		–			–			–			–			95.0			–
Proceeds on issuance of senior secured notes		–			33.1			–			98.4			–			–
Note exchange costs		–			–			–			(8.3	)		(2.2	)		–
Proceeds on termination of debt foreign currency contracts		–			–			–			–			34.7			–
Settlement on purchase of debt securities		–			–			–			(9.2	)		(26.9	)		–
Deferred financing costs		–			(9.3	)		(2.4	)		(4.5	)		(0.9	)		(5.5	)
DIP financing costs		–			(3.8	)		–			–			–			–
Increase (decrease) in other long-term debt		–			(0.9	)		(0.9	)		(1.0	)		(1.0	)		3.6
Cash flows provided (used) by financing activities		(40.0	)		34.9			18.9			60.9			(22.6	)		132.2
Cash and cash equivalents, increase (decrease) in the year		5.9			(12.5	)		(70.3	)		12.3			78.1			5.0
Cash and cash equivalents, beginning of year		12.6			25.1			95.4			83.1			5.0			–
Cash and cash equivalents, end of year	$	18.5		$	12.6		$	25.1		$	95.4		$	83.1		$	5.0

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INCOME TAXES (Details 1) (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009	Dec. 31, 2008
Current	0.1
Deferred	0.1
Income Tax Expense (Benefit)	0.2
Current	0
Deferred	0
Income tax expense	0
Predecessor [Member]
Current		(0.4)	0.2		(0.2)
Deferred		(0.7)	(7.6)		(16.1)		(26.6)	(92.4)
Income Tax Expense (Benefit)		(1.1)	(8.4)	[1]	(19.8)	[2]	(23.1)	(90.7)
Current		0	0		0
Deferred		0	1.0		3.5
Income tax expense		0	1.0		3.5
Canada [Member]
Current	0
Deferred	(1.0)
Income Tax Expense (Benefit)	(1.0)
Canada [Member] | Predecessor [Member]
Current		0	(0.1)		0.2
Deferred		(1.1)	(6.6)		(31.6)
Income Tax Expense (Benefit)		(1.1)	(6.7)		(31.4)
United States [Member]
Current	0.1
Deferred	1.1
Income Tax Expense (Benefit)	1.2
United States [Member] | Predecessor [Member]
Current		(0.4)	0.2		(0.5)
Deferred		0.4	(2.0)		12.0
Income Tax Expense (Benefit)		0	(1.8)		11.5
Other Country [Member]
Current	0
Deferred	0
Income Tax Expense (Benefit)	0
Other Country [Member] | Predecessor [Member]
Current		0	0.1		0.1
Deferred		0	0		0
Income Tax Expense (Benefit)		0	0.1		0.1

[1] Included $8.4 million income tax recovery related to continuing operations and $1.0 million income tax expense related to discontinued operations

[2] Included $19.8 million income tax recovery related to continuing operations and $3.5 million income tax expense related to discontinued operations

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ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2012

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]

The components of accounts payable and accrued liabilities are as follows:

	Successor				Predecessor
	As at December 31		As at September 30		As at December 31
	2012		2012		2011
Trade payables	$	54.4	$	50.9	$	81.7
Accrued payroll and related liabilities		23.6		21.8		32.7
Accrued interest		11.7		5.6		33.2
Accrued benefit obligation – pension plan (note 19)		7.4		7.3		6.9
Accrued benefit obligation – other employee future benefit plans (note 19)		5.8		5.3		6.8
Property taxes, including taxes in arrears, interest and related parties		–		–		0.7
Restructuring (note 24)		0.3		0.4		1.2
Lease obligation – paper recycling – current portion		–		–		2.3
Payables related to capital projects		3.9		0.9		3.7
Other		6.7		5.3		5.3
	$	113.8	$	97.5	$	174.5

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CREDITOR PROTECTION PROCEEDINGS RELATED DISCLOSURES (Details 1) (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended
	Dec. 31, 2012	Sep. 30, 2012		Dec. 31, 2011
Proceeds from implementation of the Plan:
Release of restricted cash	0.7	3.7
Payment of issuance costs related to new debt	0	9.3
Cash and cash equivalents	16.6	12.2		25.1
Plan Of Arrangement Adjustments [Member]
Proceeds from implementation of the Plan:
Release of restricted cash		(6.1)	[1]
Borrowing under the ABL Facility		64
Issuance of Floating Rate Notes Payments related to implementation of the Plan		33.4
Repayment of DIP Credit Facility, including exit fee of $6.9 million		(104.5)
Payment of issuance costs related to new debt		(9.3)
Other		(0.2)
Cash and cash equivalents		(10.5)	[1]

[1] Please refer "Credit Or Protection Proceedings Related Disclosures (Details 1)"

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GUARANTEES AND INDEMNITIES (Details Textual) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011
Participating Mortgage Loans, Mortgage Obligations, Amount	3.0	3.4	4.8

XML

LONG-TERM DEBT (Details) In Millions, unless otherwise specified	Dec. 31, 2012 CAD	Sep. 30, 2012 CAD	Dec. 31, 2012 Floating Rate Senior Secured Notes Due September 2016 [Member] CAD	Sep. 30, 2012 Floating Rate Senior Secured Notes Due September 2016 [Member] CAD	Dec. 31, 2010 Floating Rate Senior Secured Notes Due September 2016 [Member] USD ($)	Dec. 31, 2012 Senior Secured Notes Due October 2017 [Member] USD ($)	Dec. 31, 2012 Senior Secured Notes Due October 2017 [Member] CAD	Sep. 30, 2012 Senior Secured Notes Due October 2017 [Member] CAD	Dec. 31, 2012 Senior Notes [Member] USD ($)	Dec. 31, 2012 Senior Notes [Member] CAD	Sep. 30, 2012 Senior Notes [Member] CAD	Dec. 31, 2012 Senior Secured Notes Due December 2016 [Member] USD ($)	Dec. 31, 2012 Senior Secured Notes Due December 2016 [Member] CAD	Sep. 30, 2012 Senior Secured Notes Due December 2016 [Member] CAD	Dec. 31, 2012 Senior Notes Two [Member] USD ($)	Dec. 31, 2012 Senior Notes Two [Member] CAD	Sep. 30, 2012 Senior Notes Two [Member] CAD	Dec. 31, 2012 Class B Senior Secured Notes [Member] USD ($)	Dec. 31, 2012 Class B Senior Secured Notes [Member] CAD	Sep. 30, 2012 Class B Senior Secured Notes [Member] CAD	Dec. 31, 2012 First Mortgage Bonds [Member] CAD	Sep. 30, 2012 First Mortgage Bonds [Member] CAD	Dec. 31, 2012 Subordinated Promissory Notes [Member] CAD	Sep. 30, 2012 Subordinated Promissory Notes [Member] CAD	Dec. 31, 2011 Predecessor [Member] CAD	Dec. 31, 2010 Predecessor [Member] CAD	Dec. 31, 2009 Predecessor [Member] CAD	Dec. 31, 2008 Predecessor [Member] CAD	Dec. 31, 2011 Predecessor [Member] Floating Rate Senior Secured Notes Due September 2016 [Member] CAD	Dec. 31, 2011 Predecessor [Member] Senior Secured Notes Due October 2017 [Member] CAD	Dec. 31, 2011 Predecessor [Member] Senior Notes [Member] CAD	Dec. 31, 2011 Predecessor [Member] Senior Secured Notes Due December 2016 [Member] CAD	Dec. 31, 2011 Predecessor [Member] Senior Notes Two [Member] CAD	Dec. 31, 2011 Predecessor [Member] Class B Senior Secured Notes [Member] CAD	Dec. 31, 2011 Predecessor [Member] First Mortgage Bonds [Member] CAD	Dec. 31, 2011 Predecessor [Member] Subordinated Promissory Notes [Member] CAD
Recourse Debt Secured	282.6	279.3	33.9	33.4	$ 35.0	$ 250.0	248.7	245.9	$ 250.0	0	0	$ 280.4	0	0	$ 38.3	0	0	$ 110.0	0	0					671.3				0	0	256.4	285.2	31.2	98.5
Revolving asset-based loan facility of up to $175.0 million due July 2017	24.0	64.0																							0
Revolving asset-based loan facility of up to $175.0 million due May 2016	0	0																							48
Recourse Debt, Capital Lease Obligations	8.2	8.5																							9.2
Carrying Value, Recourse Debt	314.8	351.8																							728.5
Carrying Value, Non-Recourse Debt	113.8	113.8																			95.0	95.0	18.8	18.8	113.8										95.0	18.8
Total debt	428.6	465.6																							842.3
Less: current portion	(6.6)	(6.7)																							(466.8)	(27.0)	(1.0)	(75.8)
Long-term debt	422.00	458.90					33.60	0																	375.50	783.90	774.60	894.10

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CREDITOR PROTECTION PROCEEDINGS RELATED DISCLOSURES (Tables)

12 Months Ended

Dec. 31, 2012

Creditor Protection Proceedings Related Disclosures [Abstract]

Schedule of Amounts Recognized in Balance Sheet [Table Text Block]

The adjustments set forth in the column labeled Fresh start accounting adjustments reflect, among other things, adjustments to the carrying values of the company’s assets and liabilities to reflect their fair values, and the elimination of common stock, additional paid-in-capital, deficit and accumulated other comprehensive loss as a result of the application of fresh start accounting.

	As at September 30, 2012
				Plan of			Fresh Start
				Arrangement			Accounting
(In millions of Canadian dollars)	Predecessor			Adjustments			Adjustments			Successor
Assets
Current assets
Cash and cash equivalents	$	22.7		$	(10.5	)1	$	–		$	12.2
Restricted cash		9.8			(6.1	)1		–			3.7
Accounts receivable		144.8			(4.0	)4		–			140.8
Inventories		131.5			–			–			131.5
Prepaids and other		20.1			–			(7.1	)7		13.0
Assets held for sale		44.2			–			12.07			56.2
		373.1			(20.6	)		4.9			357.4
Property, plant and equipment		356.7			–			257.47			614.1
Goodwill		–			–			56.77			56.7
Deferred income tax assets		2.5			–			(2.5	)7		–
Other assets		2.6			9.31			–			11.9
	$	734.9		$	(11.3	)	$	316.5		$	1,040.1
Liabilities
Liabilities not subject to compromise
Current liabilities
Accounts payable and accrued liabilities	$	85.3		$	12.22		$	–		$	97.5
Current portion of long-term debt		6.7			–			–			6.7
Liabilities associated with assets held for sale		16.6			0.52			(2.3	)7		14.8
		108.6			12.7			(2.3	)		119.0
Long-term debt		215.4			243.53			–			458.9
Employee future benefits		300.4			–			–			300.4
Other long-term obligations		9.0			–			–			9.0
Deferred credits		9.6						(9.6	)7		–
Total liabilities not subject to compromise		643.0			256.2			(11.9	)		887.3
Liabilities subject to compromise		875.5			(875.5	)4		–			–
Total liabilities		1,518.5			(619.3	)		(11.9	)		887.3
Deficiency
Shareholders’ deficiency
Predecessor common stock		1,035.2			–			(1,035.2	)8		–
Successor common stock		–			144.95			–			144.9
Additional paid-in capital		16.7			–			(16.7	)8		–
Deficit		(1,688.1	)		463.16			1,225.08			–
Accumulated other comprehensive loss		(114.1	)		–			114.18			–
		(750.3	)		608.0			287.2			144.9
Non-controlling interest (deficit)		(33.3	)		–			41.2			7.9
		(783.6	)		608.0			328.47			152.8
	$	734.9		$	(11.3	)	$	316.5		$	1,040.1

Schedule Of Amended Plan Of Arrangement [Table Text Block]

Implementation of the Plan resulted in the following cash impact:

(In millions of Canadian dollars)
Proceeds from implementation of the Plan:
Release of restricted cash	$	6.1
Borrowing under the ABL Facility		64.0
Issuance of Floating Rate Notes		33.4
Payments related to implementation of the Plan
Repayment of DIP Credit Facility, including exit fee of $6.9 million		(104.5	)
Payment of issuance costs related to new debt		(9.3	)
Other		(0.2	)
	$	(10.5	)

Schedule Of Amended Plan Settlement Or Extinguishment Of Liabilities [Table Text Block]

The settlement or extinguishment of all remaining liabilities subject to compromise as of September 30, 2012 under the Plan is summarized below:

(In millions of Canadian dollars)
Unsecured pre-petition debt	$	243.9
Secured pre-petition debt		380.9
Accrued interest on unsecured pre-petition debt		18.9
Accrued interest on secured pre-petition debt		59.5
Accounts payable and accrued liabilities, excluding accrued interest		33.8
Pension and other post-retirement projected benefit obligations		24.8
Labour union claim *		91.8
Rejected leases and contracts		21.9
Total liabilities subject to compromise of the Predecessor company		875.5
Issuance of Successor company common stock **		(144.9	)
Issuance of new senior secured notes		(243.8	)
Estimated Cash Convenience Pool payable		(0.9	)
Estimated PREI Proceeds Pool payable ***		(11.7	)
Elimination of sales tax receivable related to compromised accounts payable		(4.0	)
Gain on extinguishment of liabilities subject to compromise ****	$	470.2

* The labour unions at the company’s Canadian mills submitted unsecured claims with respect to the June 25, 2012 creditor vote on the Plan. These claims were based on the estimated present value of the five-year wage and benefit reductions agreed to in the new labour agreements that went into effect on May 1, 2012. These claims, which were under dispute at the time of the approval of the Plan, were subsequently allowed by the Court.

** On September 30, 2012, the company had 14.4 million common shares outstanding. These common shares were issued to its secured bondholders. On September 30, 2012, the company held a total of 0.6 million common shares in reserve for the benefit of holders of allowed unsecured creditor claims comprising the Unsecured Creditor Share Pool. In December 2012, 127,571 additional common shares were issued as full and final settlement of the Unsecured Creditor Share Pool, increasing the total common shares outstanding as of December 31, 2012 to 14,527,571.

*** The company entered into an agreement to sell PREI on February 13, 2013 for $33.0 million and therefore adjusted the estimated PREI Proceeds Pool payable as of December 31, 2012 to $12.9 million.

**** Includes gain related to discontinued operations of $4.8 million. See note 9, Assets held for sale and discontinued operations.

Schedule Of Issuance Of Common Stock [Table Text Block]

Reflects the issuance of common stock of the Successor company, which had an equity value of $144.9 million as of September 30, 2012 which was determined as follows:

(In millions of Canadian dollars)
Enterprise value	$	392.9
Plus:
Net redundant assets		117.3
Less:
Interest bearing debt		(351.8	)
Other adjustments		(13.5	)
Equity value of the Successor company	$	144.9

Schedule Of Reorganization Items [Table Text Block]

Reflects the following items, all of which were included in Reorganization items, net in our consolidated statements of earnings (loss) for the nine months ended September 30, 2012:

(In millions of Canadian dollars)
Gain on extinguishment of liabilities subject to compromise	$	470.2
Professional fees *		(6.9	)
Other		(0.2	)
Gain due to plan of arrangement adjustments **	$	463.1

* Represents professional fees that were contractually due to certain professionals as “success” fees upon the company’s emergence from the creditor protection proceedings and were recorded as part of the effects of implementing the plan of arrangement.

** Includes gain related to discontinued operations of $7.1 million. See note 9, Assets held for sale and discontinued operations

Asset and Liabilities To Reflect Estimated Values Based On Respective Valuation Methods [Table Text Block]

Reflects the following adjustments to the carrying value of asset and liabilities to reflect their estimated values as of September 30, 2012 based on the respective valuation methods discussed previously:

(In millions of Canadian dollars)
Prepaids and other	$	(7.1	)
Property, plant and equipment		257.4
Assets held for sale		12.0
Goodwill		56.7
Deferred income tax assets		(2.5	)
Liabilities associated with assets held for sale		2.3
Deferred credits		9.6
Gain due to fresh start accounting adjustments	$	328.4

Reconciliation Of Enterprise Equity Value and Allocation Of Reorganization Value To Assets and Liabilities [Table Text Block]

The following table summarizes the reconciliation of the enterprise equity value to the reorganization value, and the allocation of the reorganization value to the assets and liabilities of the Successor company based on their estimated fair values as of September 30, 2012.

(In millions of Canadian dollars)
Enterprise value of the Successor company, including net redundant assets and other adjustments	$	496.7
Adjusted for:
Non-controlling deficit		7.9
Non-interest bearing liabilities		535.5
Reorganization value to be allocated to assets		1,040.1
Less amounts allocated to the value of:
Total current assets		(357.4	)
Property, plant and equipment		(614.1	)
Other assets		(11.9	)
Reorganization value not allocated (goodwill)	$	56.7

Components Of Reorganization Items Net [Table Text Block]

The components of reorganization items, net for the three months ended December 31, 2012 and the nine months ended September 30, 2012, were as follows:

Reorganization items, net	Three months ended December 31, 2012		Nine months ended September 30, 2012
Professional fees ¹	$	1.8	$	24.7
Gain due to plan of arrangement adjustments ²		1.4		(456.0	)
Gain due to fresh start accounting adjustments ³		–		(328.3	)
DIP financing costs 4		–		3.8
Acceleration of ABL financing costs 5		–		3.3
Provision for repudiated lease contract 6		–		7.0
Write-off of debt discount, modification and issuance costs 7		–		(11.0	)
Adjustment to pre-petition accounts payable 8		–		(4.8	)
Adjustment to other post-employment benefits		–		2.4
Provision for labour union claims 9		–		91.8
Other		–		0.2
Reorganization items, net from continuing operations		3.2		(666.9	)
Gain due to plan of arrangement adjustments ²		1.0		(7.1	)
Gain due to fresh start accounting adjustments ³		–		(0.1	)
Adjustment to pre-petition accounts payable		–		(1.9	)
Provision for repudiated coal contract 6		–		4.3
Reorganization items, net from discontinued operations		1.0		(4.8	)
Total	$	4.2	$	(671.7	)

1 Professional fees directly related to the creditor protection proceedings, ongoing monitoring and establishment of a reorganization plan, including legal, consulting and other professional fees.

2 See discussion under Plan of arrangement adjustments above.

3 See discussion under Fresh start accounting adjustments above.

4 DIP financing costs incurred in connection with entering into the DIP Credit Agreement, including commitment fees.

5 Pursuant to the creditor protection proceedings, the company’s former ABL Facility was replaced by the DIP Credit Facility which resulted in the acceleration of the remaining deferred unamortized financing costs on the ABL Facility to the consolidated statements of earnings (loss).

6 The company repudiated on a lease contract at its paper recycling operation which was closed in 2010, resulting in a $7.0 million adjustment to the allowed claims amount. The company repudiated on a coal contract at its Snowflake mill, discontinued on September 30, 2012, which resulted in adjustments for allowed claims of $4.3 million.

7 The company’s secured and unsecured pre-petition debt balances were adjusted to the allowed claims amounts, defined as the outstanding principal plus accrued and unpaid interest, which resulted in the write-off of the unamortized discount, modification and debt issue costs on the 2014 Notes and 2016 Notes.

8 The company’s pre-petition accounts payable were adjusted to the allowed claims amount.

9 The labour unions at the company’s Canadian mills submitted unsecured claims with respect to the June 25, 2012 creditor vote on the Plan. These claims were based on the estimated present value of the five-year wage and benefit reductions agreed to in the new labour agreements that went into effect on May 1, 2012. These claims, which were under dispute at the time of the approval of the Plan, were subsequently allowed by the Court, resulting in a provision for $91.8 million.

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INTEREST EXPENSE, NET

12 Months Ended

Dec. 31, 2012

Interest Expense Net Disclosure [Abstract]

Interest Expense Net Disclosures [Text Block]

25. INTEREST EXPENSE, NET

The components of interest expense, net were as follows:

	Successor		Predecessor
	Three months ended		Nine months ended			Years ended
	December 31		September 30			December 31
	2012		2012			2011			2010
Interest on long-term debt	$	10.8	$	59.6		$	72.0		$	71.5
Other		0.8		0.8			1.5			0.8
		11.6		60.4			73.5			72.3
Interest income		–		(0.1	)		(0.3	)		(0.4	)
	$	11.6	$	60.3		$	73.2		$	71.9

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CREDITOR PROTECTION PROCEEDINGS RELATED DISCLOSURES (Details 2) (CAD) In Millions, unless otherwise specified			9 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Sep. 30, 2012 Plan Of Arrangement Adjustments [Member]		Dec. 31, 2011 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]	Dec. 31, 2008 Predecessor [Member]	Sep. 30, 2012 Predecessor [Member] Plan Of Arrangement Adjustments [Member]
Unsecured pre-petition debt			243.9
Secured pre-petition debt			380.9
Accrued interest on unsecured pre-petition debt			18.9
Accrued interest on secured pre-petition debt			59.5
Accounts payable and accrued liabilities, excluding accrued interest			33.8
Pension and other post-retirement projected benefit obligations	0	0	24.8
Labour union claim			91.8	[1]
Rejected leases and contracts			21.9
Total liabilities subject to compromise of the Predecessor company		0	(875.5)	[2]					875.5
Issuance of Successor company common stock	144.9	144.9	144.9		1,035.2	1,035.0	1,035.0	1,035.0
Issuance of new senior secured notes			(243.8)
Estimated Cash Convenience Pool payable			(0.9)
Estimated PREI Proceeds Pool payable			(11.7)	[3]
Elimination of sales tax receivable related to compromised accounts payable			(4)
Gain on extinguishment of liabilities subject to compromise			470.2	[4]

[1] The labour unions at the company's Canadian mills submitted unsecured claims with respect to the June 25, 2012 creditor vote on the Plan. These claims were based on the estimated present value of the five-year wage and benefit reductions agreed to in the new labour agreements that went into effect on May 1, 2012. These claims, which were under dispute at the time of the approval of the Plan, were subsequently allowed by the Court.

[2] Please refer "Credit Or Protection Proceedings Related Disclosures (Details 2)"

[3] The company entered into an agreement to sell PREI on February 13, 2013 for $33.0 million and therefore adjusted the estimated PREI Proceeds Pool payable as of December 31, 2012 to $12.9 million.

[4] Includes gain related to discontinued operations of $4.8 million. See note 9, Assets held for sale and discontinued operations.

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EMPLOYEE FUTURE BENEFITS (Details 10) (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended
	Dec. 31, 2012	Sep. 30, 2012
Increase in Total of service and interest cost	0.3	0.8
Increase in Accrued benefit obligation at December 31	16.9	16.9
Decrease in Total of service and interest cost	(0.2)	(0.7)
Decrease in Accrued benefit obligation at December 31	(14.6)	(14.6)

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INCOME TAXES (Details 4) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011 Predecessor [Member]
Deferred income tax assets (liabilities)
Property, plant and equipment	126.3	119.7	215.5
Non-capital loss carry-forwards	14.9	12.9	69.1
Employee future benefits	77.3	76.9	77.0
Other	4.5	3.0	11.2
Deferred Tax Assets and Liabilities Gross	223.0	212.5	372.8
Valuation allowance	(223.0)	(212.5)	(376.4)
Deferred Tax Assets and Liabilities Net Of Allowance	0	0	(3.6)

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RESTRUCTURING (Details) (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Balance, beginning of period	0.4
Expensed in period	0
Disbursements	(0.6)
Balance, end of period	0.9
Classification:
Restructuring Reserve	0.9
Predecessor [Member]
Balance, beginning of period	0.4	1.3	3.3
Expensed in period		5.3	5.9	25.3	17.9	30.1
Disbursements		(6.2)	(7.9)
Balance, end of period		0.4	1.3	3.3
Classification:
Restructuring Reserve		0.4	1.3	3.3
Accounts Payable and Accrued Liabilities [Member]
Balance, end of period	0.3
Classification:
Restructuring Reserve	0.3
Accounts Payable and Accrued Liabilities [Member] | Predecessor [Member]
Balance, end of period		0.4	1.2
Classification:
Restructuring Reserve		0.4	1.2
Assets Held-For-Sale [Member]
Balance, end of period	0.6
Classification:
Restructuring Reserve	0.6
Other Long term Obligations [Member]
Balance, end of period	0
Classification:
Restructuring Reserve	0
Other Long term Obligations [Member] | Predecessor [Member]
Balance, end of period		0	0.1
Classification:
Restructuring Reserve		0	0.1

XML

NATURE OF OPERATIONS AND GOING CONCERN (Details Textual) (CAD) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Jan. 31, 2012
Debtor-in-Possession Financing, Letters of Credit Outstanding		175
Description Of Creditor Protection Proceedings	In accordance with FASB ASC 852, fresh start accounting was required upon the company's emergence from the creditor protection proceedings because: - The reorganization value of the assets of the Predecessor company (defined below) immediately prior to the approval of the Plan was less than the total of all post-petition liabilities and allowed claims, and - The holders of the Predecessor company's existing voting shares immediately prior to the approval of the Plan received less than 50% of the voting shares of the common stock of the Successor company (defined below).

XML

VARIABLE INTEREST ENTITIES (Details 1) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2012 Predecessor [Member]	Dec. 31, 2011 Predecessor [Member]		Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]	Dec. 31, 2008 Predecessor [Member]	Dec. 31, 2007 Predecessor [Member]	Dec. 31, 2012 Powell River Energy Inc [Member]		Sep. 30, 2012 Powell River Energy Inc [Member]		Dec. 31, 2011 Powell River Energy Inc [Member] Predecessor [Member]
Current assets
Cash and cash equivalents	16.6	12.2	25.1	12.6	25.1		95.4	83.1	5.0	0	6.6		6.9		6.0
Other	5.7	6.3			2.4						2.7		3.4		3.1
Property, plant and equipment	611.60	614.10			386.30		1,285.60	1,664.70	1,854.40		147.00		145.90		95.50
Assets	978.8	1,040.1		1,040.1	737.6		1,696.2	2,090.8	2,390.3		156.3		156.2		104.6
Current liabilities
Accounts payable and accrued liabilities	113.80	97.50			174.50		171.60	173.30	269.40		13.10		8.50		4.70
Long-term debt (note 18)	422.00	458.90			375.50		783.90	774.60	894.10		113.80		113.80		113.80
Long-term debt affiliate					20.8	[1]					20.8	[1]	20.8	[1]	20.8	[1]
Deferred income taxes					23.6						23.6		24.6		12.7
Deficit	(35.20)	0			(1,556.00)		(582.00)	(185.10)	(180.70)		(15.00)	[2]	(11.50)	[2]	(47.40)	[2]
Total Liabilities and Equity	978.8	1,040.1			737.6		1,696.2	2,090.8	2,390.3		156.3		156.2		104.6

[1] Balances with Catalyst Paper Energy Holdings Inc., a Subsidiary of Catalyst Paper Corporation.

[2] 50% is included in the company's non-controlling interest (deficit) balances.

XML

EMPLOYEE FUTURE BENEFITS (Tables)

12 Months Ended

Dec. 31, 2012

Compensation and Retirement Disclosure [Abstract]

Schedule of Net Benefit Costs [Table Text Block]

Components of net periodic benefit cost recognized

	Successor			Predecessor
	Three months ended December 31			Nine months ended September 30			Years ended December 31
Pension benefit plans	2012			2012			2011			2010
Defined benefit plan
Service cost for the period	$	0.2		$	1.0		$	1.4		$	2.1
Interest cost		3.7			12.3			17.7			20.5
Expected return on assets		(3.6	)		(11.2	)		(16.5	)		(16.2	)
Recognition (reversal) of downsizing program		–			(0.2	)		1.7			–
Amortization of unrecognized items:
Actuarial (gains) losses		–			6.4			7.9			6.3
Prior service costs		–			0.3			0.4			0.4
		0.3			8.6			12.6			13.1
Defined contribution plan
Service cost for the period		0.7			2.4			3.4			3.5
Multi-employer industry-wide pension plan service cost for the period		2.0			7.5			10.1			9.8
Net periodic benefit cost for pension benefit plans	$	3.0		$	18.5		$	26.1		$	26.4

	Successor		Predecessor
	Three months ended December 31		Nine months ended September 30			Years ended December 31
	2012		2012			2011			2010
Other benefit plans
Service cost for the period	$	0.4	$	1.0		$	1.3		$	2.0
Interest cost		1.5		5.3			7.6			10.0
Amortization of unrecognized items:
Actuarial (gains) losses		–		0.1			0.4			0.2
Prior service credits		–		(2.8	)		(3.7	)		(3.6	)
Net periodic benefit cost for other benefit plans	$	1.9	$	3.6		$	5.6		$	8.6

Schedule Of Change In Projected Defined Benefit Plan Obligation and Fair Value Of Plan Assets [Table Text Block]

The following table represents the change in the projected benefit obligation and fair value of plan assets as determined by independent actuaries:

	Pension benefit plans									Other benefit plans
	Successor			Predecessor						Successor			Predecessor
	Three months ended December 31			Nine months ended September 30			Year  ended			Three months ended  December 31			Nine months ended September 30			Year  ended
	2012			2012			2011			2012			2012			2011
Change in benefit obligation
Projected benefit obligation at beginning of period	$	393.9		$	383.8		$	379.4		$	150.8		$	162.3		$	154.5
Service cost for the period		0.2			1.0			1.4			0.4			1.0			1.3
Interest cost		3.7			12.3			17.7			1.5			5.3			7.6
Benefit payments		(7.8	)		(22.9	)		(42.8	)		(1.5	)		(5.6	)		(6.8	)
Recognition (reversal) of downsizing program		–			(0.2	)		1.7			–			(1.4	)		–
Elimination of extended health benefits for retirees		–			–			–			–			(24.8	)		–
Actuarial losses (gains) and other adjustments		(3.5	)		19.9			26.4			(2.0	)		14.0			5.7
Projected benefit obligation at end of period	$	386.5		$	393.9		$	383.8		$	149.2		$	150.8		$	162.3
Change in plan assets
Fair value of defined benefit plan assets at beginning of period	$	231.9		$	226.9		$	246.4		$	–		$	–		$	–
Actual return on plan assets		4.3			13.4			1.0			–			–			–
Company contributions		4.6			14.5			22.0			1.5			5.6			6.8
Other		–			–			0.3			–			–			–
Benefit payments		(7.8	)		(22.9	)		(42.8	)		(1.5	)		(5.6	)		(6.8	)
Fair value of assets at end of period	$	233.0		$	231.9		$	226.9		$	–		$	–		$	–

Schedule of Net Funded Status [Table Text Block]

Reconciliation of funded status to amounts recognized in the consolidated balance sheets

	Pension benefit plans									Other benefit plans
	Successor						Predecessor			Successor						Predecessor
	As at December 31			As at  September 30			As at  December 31			As at  December 31			As at September 30			As at December 31
	2012			2012			2011			2012			2012			2011
Projected benefit obligation at end of period	$	386.5		$	393.9		$	383.8		$	149.2		$	150.8		$	162.3
Fair value of plan assets at end of period		233.0			231.9			226.9			–			–			–
Funded status	$	(153.5	)	$	(162.0	)	$	(156.9	)	$	(149.2	)	$	(150.8	)	$	(162.3	)

	Pension benefit plans									Other benefit plans
	Successor						Predecessor			Successor						Predecessor
	As at December 31			As at  September 30			As at  December 31			As at  December 31			As at September 30			As at December 31
	2012			2012			2011			2012			2012			2011
Other assets (note 16)	$	0.2		$	0.2		$	0.2		$	–		$	–		$	–
Accounts payable and accrued liabilities (note 17)		(7.4	)		(7.3	)		(6.9	)		(5.8	)		(5.3	)		(6.8	)
Employee future benefits		(146.3	)		(154.9	)		(150.2	)		(143.4	)		(145.5	)		(155.5	)
	$	(153.5	)	$	(162.0	)	$	(156.9	)	$	(149.2	)	$	(150.8	)	$	(162.3	)

Schedule of Net Periodic Benefit Cost Not yet Recognized [Table Text Block]

Amounts not yet recognized in net periodic benefit cost and included in accumulated other comprehensive income (loss)

	Pension benefit plans							Other benefit plans
	Successor				Predecessor			Successor				Predecessor
	As at December 31		As at  September 30		As at  December 31			As at  December 31		As at September 30		As at December 31
	2012		2012		2011			2012		2012		2011
Prior year service credits (costs)	$	–	$	–	$	(2.9	)	$	–	$	–	$	25.0
Accumulated gain (loss)		4.6		–		(109.8	)		2.0		–		(1.9	)
Accumulated other comprehensive income (loss)	$	4.6	$	–	$	(112.7	)	$	2.0	$	–	$	23.1

Schedule Of Net Periodic Benefit Cost Not Yet Recognized Included In Other Comprehensive Income Loss Before Tax [Table Text Block]

Amounts before taxes included in other comprehensive income (loss)

	Successor		Predecessor
	Three months ended December 31		Nine months ended September 30			Twelve months ended December 31
Pension benefit plans	2012		2012			2011
Amortization of employee future benefits	$	–	$	6.6		$	8.5
Net gain (loss)		4.6		(17.4	)		(41.4	)
Net amount recognized in other comprehensive income (loss)	$	4.6	$	(10.8	)	$	(32.9	)

	Successor		Predecessor
	Three months ended December 31		Nine months ended September 30			Twelve months ended December 31
Other benefit plans	2012		2012			2011
Amortization of employee future benefits	$	–	$	(2.7	)	$	(3.3	)
Net gain (loss)		2.0		(14.3	)		(5.5	)
Net amount recognized in other comprehensive income (loss)	$	2.0	$	(17.0	)	$	(8.8	)

Schedule of Expected Benefit Payments [Table Text Block]

The following table presents estimated future benefit payments from the plans as of December 31, 2012. Benefit payments for other post-retirement benefits are presented net of retiree contributions.

	Pension benefit plans		Other benefit plans
2013	$	30.6	$	6.0
2014		30.5		6.3
2015		30.1		6.7
2016		29.6		7.0
2017		29.0		7.4
2018 - 2022		133.5		42.4

Schedule of Allocation of Plan Assets [Table Text Block]

The asset allocation for the company’s defined benefit pension plans, by asset category, was as follows:

	Successor						Predecessor
Plan assets	As at December 31, 2012			As at September 30, 2012			As at December 31, 2011
Equity securities		56.2	%		57.3	%		58.5	%
Fixed income securities		38.6	%		37.6	%		41.5	%
Real estate		5.2	%		5.1	%		–
Total		100.0	%		100.0	%		100.0	%

Schedule Of Fair Value Of Plan Assets [Table Text Block]

The following tables present information about the fair value of pension and other benefit plan assets:

				Fair value hierarchy
As at December 31, 2012 (successor)	Total			Level 1		Level 2			Level 3
Asset category
Cash and cash equivalents	$	2.8		$	2.8	$	–		$	–
Equity securities:
Global equity pooled funds 1		85.5			85.5		–			–
Canadian equity pooled funds 2		45.2			45.2		–			–
Fixed income securities:
Canadian long bond pooled funds 4		43.7			–		43.7			–
Canadian bond pooled funds 4		43.9			–		43.9			–
Forward currency contracts 5		(0.1	)		–		(0.1	)		–
Real estate 6		12.0			–		12.0			–
Total	$	233.0		$	133.5	$	99.5		$	–

			Fair value hierarchy
As at September 30, 2012 (successor)	Total		Level 1		Level 2		Level 3
Asset category
Cash and cash equivalents	$	2.7	$	2.7	$	–	$	–
Equity securities:
Global equity pooled funds 1		84.2		84.2		–		–
Canadian equity pooled funds 2		46.3		46.3		–		–
Fixed income securities:
Canadian long bond pooled funds 4		43.4		–		43.4		–
Canadian bond pooled funds 4		43.5		–		43.5		–
Forward currency contracts 5		–		–		–		–
Real estate 6		11.8		–		11.8		–
Total	$	231.9	$	133.2	$	98.7	$	–

			Fair value hierarchy
As at December 31, 2011 (predecessor)	Total		Level 1		Level 2		Level 3
Asset category
Cash and cash equivalents	$	7.6	$	7.6	$	–	$	–
Equity securities:
Global equity pooled funds 1		85.8		–		85.8		–
Canadian equity pooled funds 2		41.9		–		41.9		–
Balanced equity pooled funds 3		0.5		–		0.5		–
Fixed income securities:
Canadian long bond pooled funds 4		45.8		–		45.8		–
Canadian bond pooled funds 4		44.9		–		44.9		–
Forward currency contracts 5		0.4		–		0.4		–
Total	$	226.9	$	7.6	$	219.3	$	–

1 This category includes investments in pooled funds that aim to achieve long-term capital growth by investing primarily in equity securities of companies that may be located anywhere in the world, excluding Canada. Fund performance is benchmarked against the MSCI World excluding Canada (Cdn$) Index.

2 This category includes investments in pooled funds that invest in well-diversified portfolios of equity securities of Canadian companies. Fund performance is benchmarked against the S&P/TSX Capped Composite Index.

3 This category includes investments in pooled funds that invest in a well-diversified, balanced portfolio of Canadian common stocks, bonds, and money market securities. The fund also holds a portion of its assets in foreign common stock. Fund performance is benchmarked against a customized index consisting of: 35% S&P/TSX Capped Composite Total Return Index, 25% Morgan Stanley Capital International World (Developed Markets) Index excluding Canada, 35% DEX Universe Bond Index and 5% DEX 30-Day T-Bill Index.

4 This category includes investments in pooled funds that invest in a well-diversified portfolio of fixed income securities issued primarily by Canadian governments and corporations. The duration range of the fund is +/- one year of the benchmark’s duration. Fund performance for Canadian bond pooled funds and Canadian long bond pooled funds is benchmarked against the DEX Universe Bond Index and DEX Long-Term Bond Index, respectively.

5 This category includes foreign currency forward contracts to partially hedge investments in equity and fixed income securities denominated in foreign currencies.

6 This category includes direct investment in office, industrial, retail and residential real estate.

Schedule of Multiemployer Plans [Table Text Block]

The following table provides information about the company’s two multi-employer pension plans: 

Contributions by Catalyst Paper 4

Successor

Predecessor

Three months

Nine months

Pension Protection

FIP / RP status

ended

ended

Year ended

Year ended

EIN / Pension

Act Zone Status 2

pending /

September

September

December

December

Surcharge

Expiration

Pension Fund

plan number 1

2012

2011

Implemented 3

2012

30, 2012

2011

2010

imposed

date 5

Pulp and Paper Industry Pension Plans 6

BCFIC - P085324 CRA - 0394940

Green

Green

No

$

1.9

$

6.8

$

9.2

$

8.9

No

4/30/2017

PACE Industry Union-Management Pension Fund 7

11-6166763-001

Red

Red

Implemented

0.1

0.7

0.9

0.9

No

1/3/2014

1 Employer identification number and three digit pension plan number, if applicable.

2 Funded status on each balance sheet date presented expressed as a zone status. Green status equals at least 80% funded, yellow status equals less than 80% funded and red status equals less than 65% funded.

3 Indicates whether a funding improvement plan (FIP) or a rehabilitation plan (RP) is pending or has been implemented.

4 The company’s annual contributions to the Pulp and Paper Industry Pension Plan in each respective year were greater than 5% of total employer contributions. The company’s annual contributions to the PACE Industry Union Management Pension Fund in each respective year were less than 5% of total employer contributions.

5 Expiration date of collective bargaining agreement on December 31, 2012.

6 Plan participants are members and former members of the Pulp Paper and Woodworkers of Canada (PPWC) and the Communication Energy and Paperworkers Union (CEP).

7 Plan participants are members and former members of the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (United Steelworkers or USW).

Schedule of Assumptions Used [Table Text Block]

Actuarial assumptions used in accounting for the company-maintained benefit plans were:

	Successor			Predecessor
	Three months ended December 31			Nine months ended September 30			Year ended December 31
Other benefit plans	2012			2012			2011
Benefit obligations at period end,
Discount rate		4.00	%		3.90	%		4.40	%
Rate of compensation increase		2.00	%		2.00	%		2.00	%
Net benefit cost for the period ended,
Discount rate		3.90	%		4.40	%		5.00	%
Rate of compensation increase		2.00	%		2.00	%		2.00	%
Expected rate of return on plan assets		6.50	%		6.75	%		7.00	%
Assumed health care cost trend rate at period end,
Extended health benefits:
Initial health care cost trend rate		6.00	%		6.00	%		6.00	%
Annual rate of decline in trend rate		0.50	%		0.50	%		0.50	%
Ultimate health care cost trend rate		4.50	%		4.50	%		4.50	%
Dental benefits:
Dental care cost trend rate		3.00	%		3.00	%		3.00	%
Medical services plan benefits:
Premium trend rate		6.00% in 2012 and 4.50% thereafter			6.00% in 2011 and 2012, and 4.50% thereafter			6.00% in 2010 to 2012, and 4.50% thereafter

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block]

A 1% change in assumed health care cost rates would have the following effects for the three months ended December 31, 2012 and the nine months ended September 30, 2012:

	Other benefit plans
Three months ended December 31, 2012	Increase		Decrease
Total of service and interest cost	$	0.3	$	(0.2	)
Accrued benefit obligation at December 31		16.9		(14.6	)
	Other benefit plans
Nine months ended September 30, 2012	Increase		Decrease
Total of service and interest cost	$	0.8	$	(0.7	)
Accrued benefit obligation at September 30		16.9		(14.6	)

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EMPLOYEE FUTURE BENEFITS (Details 1) (CAD) In Millions, unless otherwise specified			3 Months Ended			9 Months Ended	12 Months Ended		9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2012 Pension Plans, Defined Benefit [Member]	Dec. 31, 2012 Other Benefit Plans [Member]	Dec. 31, 2011 Predecessor [Member]	Sep. 30, 2012 Predecessor [Member] Pension Plans, Defined Benefit [Member]	Dec. 31, 2011 Predecessor [Member] Pension Plans, Defined Benefit [Member]	Dec. 31, 2010 Predecessor [Member] Pension Plans, Defined Benefit [Member]	Sep. 30, 2012 Predecessor [Member] Other Benefit Plans [Member]	Dec. 31, 2011 Predecessor [Member] Other Benefit Plans [Member]	Dec. 31, 2010 Predecessor [Member] Other Benefit Plans [Member]
Change in benefit obligation
Projected benefit obligation at beginning of period	0	0	393.9	150.8		383.8	379.4		162.3	154.5
Service cost for the period			0.2	0.4		1.0	1.4	2.1	1.0	1.3	2.0
Interest cost			3.7	1.5		12.3	17.7	20.5	5.3	7.6	10.0
Benefit payments			(7.8)	(1.5)		(22.9)	(42.8)		(5.6)	(6.8)
Recognition (reversal) of downsizing program			0	0		(0.2)	1.7	0	(1.4)	0
Elimination of extended health benefits for retirees			0	0		0	0		(24.8)	0
Actuarial losses (gains) and other adjustments			(3.5)	(2.0)		19.9	26.4		14.0	5.7
Projected benefit obligation at end of period	0	0	386.5	149.2		393.9	383.8	379.4	150.8	162.3	154.5
Change in plan assets
Fair value of defined benefit plan assets at beginning of period	233.0	231.9	231.9	0	226.9	226.9	246.4		0	0
Actual return on plan assets			4.3	0		13.4	1.0		0	0
Company contributions			4.6	1.5		14.5	22.0		5.6	6.8
Other			0	0		0	0.3		0	0
Benefit payments			(7.8)	(1.5)		(22.9)	(42.8)		(5.6)	(6.8)
Fair value of assets at end of period	233.0	231.9	233.0	0	226.9	231.9	226.9	246.4	0	0	0

XML

RESTRUCTURING (Details 1) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012	Sep. 30, 2012 Predecessor [Member]	Dec. 31, 2011 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2012 Year 2009 and Prior Initiatives [Member]	Sep. 30, 2012 Year 2009 and Prior Initiatives [Member] Predecessor [Member]	Dec. 31, 2011 Year 2009 and Prior Initiatives [Member] Predecessor [Member]	Dec. 31, 2012 Year 2010 Initiatives [Member]	Sep. 30, 2012 Year 2010 Initiatives [Member] Predecessor [Member]	Dec. 31, 2011 Year 2010 Initiatives [Member] Predecessor [Member]	Dec. 31, 2012 Year 2011 Initiatives [Member]	Sep. 30, 2012 Year 2011 Initiatives [Member] Predecessor [Member]	Dec. 31, 2011 Year 2011 Initiatives [Member] Predecessor [Member]	Dec. 31, 2012 Year 2012 Initiatives [Member]	Sep. 30, 2012 Year 2012 Initiatives [Member] Predecessor [Member]	Dec. 31, 2011 Year 2012 Initiatives [Member] Predecessor [Member]
Restructuring Reserve	0.9	0.4	0.4	1.3	3.3	0.2	0.2	0.2	0	0	0.1	0	0	1.0	0.7	0.2	0

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011 Pulp Machinery [Member]	Dec. 31, 2010 Pulp Machinery [Member]
Discount Rate Based On Estimated Blended Rate	15.00%
Corporate Income Tax Rate	25.00%
Capital Cost Allowance Rate	20.00%
Property, Plant and Equipment, Useful Life		7 years	11 years

XML

FAIR VALUE MEASUREMENT (Details Textual) (CAD) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value	4.5
Prepaid Expense, Current	2
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments	0	0
Prepaid Expense, Noncurrent	2.5

XML

MEASUREMENT UNCERTAINTY - IMPAIRMENT OF LONG-LIVED ASSETS (Details) (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Asset Impairment Charges			822.0	292.8
Severances				9.7
Total			823.6	304.2
Classification in consolidated statement of earnings (loss):
Impairment and other closure costs	8.2		661.8	294.5
Loss from discontinued operations net of tax	11.00	8.70	161.80
Restructuring				9.7
Total			823.6	304.2
Building Plant and Equipment [Member]
Asset Impairment Charges			801.1
Land [Member]
Asset Impairment Charges			10.8
Supplies and Spare Parts Inventory [Member]
Asset Impairment Charges			10.1	20.3
Paper Recycling Operation [Member]
Business Exit Costs			0.5	13.7
Landfill [Member]
Asset Impairment Charges			1.1
Business Exit Costs			1.1
Property Plant and Equipment [Member]
Asset Impairment Charges				272.5
Paper Assets [Member]
Asset Impairment Charges				(12.0)

XML

FAIR VALUE MEASUREMENT (Details 1) (CAD) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012		Dec. 31, 2011
Other Expense [Member]
(Gain) loss reclassified from AOCI	0	[1]	0	[1]
Foreign Currency Gain (Loss) [Member]
(Gain) loss reclassified from AOCI	0	[1]	0	[1]
Cash Flow Hedging [Member]
Gain (loss) recognized in AOCI	0	[2]	0	[2]
(Gain) loss reclassified from AOCI	0	[2]	(1.0)	[2]
Net Investment Hedging [Member]
Gain (loss) recognized in AOCI	0	[2]	(2.0)	[2]
(Gain) loss reclassified from AOCI	0	[2]	(2.0)	[2]

[1] The gain (loss) recognized in income relates to the ineffective portion of the hedge and the amount excluded from effectiveness testing.

[2] The gain (loss) recognized, or (gain) loss reclassified from AOCI relates to the effective portion of the hedge.

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FINANCIAL INSTRUMENTS (Details) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2011 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]	Dec. 31, 2008 Predecessor [Member]
Trade receivables, gross
Current	86.3	110.7		100.9
Past due 1-30 days	7.3	6.7		13.6
Past due 31-90 days	0.2	3.6		0.3
Past due over 90 days	0.9	0.9		0.3
Trade receivables, gross	94.7	121.9		115.1
Allowance for doubtful accounts	(2.2)	0	(2.0)	(2.0)	(3.0)
Trade receivables, net	92.5	121.9		113.1
Other receivables, including sales tax recoverables	21.5	18.9		21.8
Accounts receivable (note 11)	114.0	140.8		134.9	120.6	101.5	221.7

XML

CREDITOR PROTECTION PROCEEDINGS RELATED DISCLOSURES (Details 4) (Plan Of Arrangement Adjustments [Member], CAD) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2012
Plan Of Arrangement Adjustments [Member]
Gain on extinguishment of liabilities subject to compromise	470.2	[1]
Professional fees	(6.9)	[2]
Other	(0.2)
Gain due to plan of arrangement adjustments	463.1	[3]

[1] Includes gain related to discontinued operations of $4.8 million. See note 9, Assets held for sale and discontinued operations.

[2] Represents professional fees that were contractually due to certain professionals as "success" fees upon the company's emergence from the creditor protection proceedings and were recorded as part of the effects of implementing the plan of arrangement.

[3] Includes gain related to discontinued operations of $7.1 million. See note 9, Assets held for sale and discontinued operations.

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MEASUREMENT UNCERTAINTY - IMPAIRMENT OF LONG-LIVED ASSETS (Details Textual) (CAD) In Millions, unless otherwise specified	3 Months Ended				9 Months Ended	12 Months Ended				12 Months Ended		12 Months Ended									1 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2011	Jun. 30, 2011	Jun. 30, 2010	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011 Pulp and Paper Assets [Member]	Dec. 31, 2011 Pulp Assets [Member]	Dec. 31, 2010 Paper Assets [Member]	Dec. 31, 2011 Paper Assets [Member]	Dec. 31, 2011 Building Plant and Equipment [Member]	Dec. 31, 2011 Land [Member]	Dec. 31, 2011 Landfill [Member]	Dec. 31, 2011 Supplies and Spare Parts Inventory [Member]	Dec. 31, 2010 Supplies and Spare Parts Inventory [Member]	Dec. 31, 2011 Supplies and Spare Parts Inventory [Member] Accounts Payable and Accrued Liabilities [Member]	Dec. 31, 2011 Supplies and Spare Parts Inventory [Member] Other Long Term Debt [Member]	Dec. 31, 2011 Canadian Operations [Member]	Dec. 31, 2011 Snowflake Mill [Member]	Sep. 30, 2011 Snowflake Mill [Member] Building Plant and Equipment [Member]	Dec. 31, 2011 Snowflake Mill [Member] Land [Member]
Percentage Of Long Lived Assets To Total Assets	68.00%
Asset Impairment Charges						822.0	292.8			(12.0)		801.1	10.8	1.1	10.1	20.3	2.3	7.8	660.2	161.8	151.0	10.8
Business Exit Costs														1.1					0.5	1.1
Total						823.6	304.2
Property, Plant and Equipment, Useful Life								11 years
Description of Difference between Reported Amount and Reporting Currency Denominated Amount						Product sales prices and foreign exchange assumptions for 2012 of CDN$1.00 = US$0.99 were based on management's best estimates incorporating independent market information as well as analysis of historical data, trends and cycles. Product sales prices and foreign exchange assumptions for years 2013 to 2015 were based on independent, published market forecasts. The foreign exchange assumption was CDN$1.00 = US$0.97 in 2013 strengthening to CDN$1.00 = US$1.02 by 2015. Product sales prices and foreign exchange rate assumptions for 2016 and subsequent years were estimated by management based on long-term trend pricing for product sales prices and a long-term expected foreign exchange rate of CDN$1.00 = US$0.99.
Fair Value Of Assets Discount Rate						11.00%
Assets	978.8				1,040.1				83.5		576.7
Recovery Of Asset Impairment Charges		0.4	0.3	0.3
Accrued Impairment Expenses						1.2
Loss from discontinued operations net of tax	11.00				8.70	161.80

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CREDITOR PROTECTION PROCEEDINGS RELATED DISCLOSURES (Details) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012		Dec. 31, 2011
Assets
Cash and cash equivalents	16.6	12.2		25.1
Restricted cash	0.7	3.7
Accounts receivable	114.0	140.8
Inventories	125.0	131.5
Prepaids and other	8.9	13.0
Assets held for sale	34.30	56.20
Assets, Current	299.5	357.4
Property, plant and equipment	611.60	614.10
Goodwill	56.70	56.70
Deferred income tax assets		0
Other assets	11.00	11.90
Assets	978.8	1,040.1
Liabilities
Accounts payable and accrued liabilities	113.80	97.50
Current portion of long-term debt	6.6	6.7
Liabilities associated with assets held for sale	15.20	14.80
Liabilities, Current	135.6	119.0
Long-term debt	422.00	458.90
Employee future benefits	289.7	300.4
Other long-term obligations	8.9	9.0
Deferred credits		0
Total liabilities not subject to compromise		887.3
Liabilities subject to compromise		0
Total liabilities	856.2	887.3
Shareholders deficiency
Predecessor common stock	144.9	144.9
Successor common stock		144.90
Additional paid-in capital	0	0
Deficit	(35.20)	0
Accumulated other comprehensive loss	6.60	0
Stockholders' Equity Attributable to Parent	116.3	144.9
Non-controlling interest (deficit)	6.3	7.9
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	122.60	152.80
Liabilities and Equity	978.8	1,040.1
Plan Of Arrangement Adjustments [Member]
Assets
Cash and cash equivalents		(10.5)	[1]
Restricted cash		(6.1)	[1]
Accounts receivable		(4.0)	[2]
Inventories		0
Prepaids and other		0
Assets held for sale		0
Assets, Current		(20.6)
Property, plant and equipment		0
Goodwill		0
Deferred income tax assets		0
Other assets		9.31
Assets		(11.3)
Liabilities
Accounts payable and accrued liabilities		12.22
Current portion of long-term debt		0
Liabilities associated with assets held for sale		0.52
Liabilities, Current		12.7
Long-term debt		243.53
Employee future benefits		0
Other long-term obligations		0
Total liabilities not subject to compromise		256.2
Liabilities subject to compromise		(875.5)	[2]
Total liabilities		(619.3)
Shareholders deficiency
Predecessor common stock		144.9
Successor common stock		144.95
Additional paid-in capital		0
Deficit		463.16
Accumulated other comprehensive loss		0
Stockholders' Equity Attributable to Parent		608.0
Non-controlling interest (deficit)		0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		608.00
Liabilities and Equity		(11.3)
Fresh Start Accounting Adjustments [Member]
Assets
Cash and cash equivalents		0
Restricted cash		0
Accounts receivable		0
Inventories		0
Prepaids and other		(7.1)	[3]
Assets held for sale		12.07
Assets, Current		4.9
Property, plant and equipment		257.47
Goodwill		56.77
Deferred income tax assets		(2.5)	[3]
Other assets		0
Assets		316.5
Liabilities
Accounts payable and accrued liabilities		0
Current portion of long-term debt		0
Liabilities associated with assets held for sale		(2.30)	[3]
Liabilities, Current		(2.3)
Long-term debt		0
Employee future benefits		0
Other long-term obligations		0
Deferred credits		(9.6)	[3]
Total liabilities not subject to compromise		(11.9)
Liabilities subject to compromise		0
Total liabilities		(11.9)
Shareholders deficiency
Predecessor common stock		(1,035.2)	[4]
Successor common stock		0
Additional paid-in capital		(16.7)	[4]
Deficit		1,225.08
Accumulated other comprehensive loss		114.18
Stockholders' Equity Attributable to Parent		287.2
Non-controlling interest (deficit)		41.2
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		328.47
Liabilities and Equity		316.5
Predecessor [Member]
Assets
Cash and cash equivalents		22.7
Restricted cash		9.8
Accounts receivable		144.8
Inventories		131.5
Prepaids and other		20.1
Assets held for sale		44.20
Assets, Current		373.1
Property, plant and equipment		356.70
Goodwill		0
Deferred income tax assets		2.5
Other assets		2.60
Assets		734.9
Liabilities
Accounts payable and accrued liabilities		85.30
Current portion of long-term debt		6.7
Liabilities associated with assets held for sale		16.60
Liabilities, Current		108.6
Long-term debt		215.40
Employee future benefits		300.4
Other long-term obligations		9.0
Deferred credits		9.6
Total liabilities not subject to compromise		643.0
Liabilities subject to compromise		875.5
Total liabilities		1,518.5
Shareholders deficiency
Predecessor common stock		1,035.2
Successor common stock		0
Additional paid-in capital		16.7
Deficit		(1,688.10)
Accumulated other comprehensive loss		(114.10)
Stockholders' Equity Attributable to Parent		(750.3)
Non-controlling interest (deficit)		(33.3)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		(783.60)
Liabilities and Equity		734.9

[1] Please refer "Credit Or Protection Proceedings Related Disclosures (Details 1)"

[2] Please refer "Credit Or Protection Proceedings Related Disclosures (Details 2)"

[3] Please refer "Credit Or Protection Proceedings Related Disclosures (Details 5)"

[4] The net adjustments to common stock, additional paid-in-capital, deficit, and accumulated other comprehensive loss included the adjustments required to state assets and liabilities of the Successor company at fair value, which resulted in a gain of $328.4 million included in Reorganization items, net ($328.3 million) and Loss from discontinued operations net of tax ($0.1 million) in the company's consolidated statements of earnings (loss), and the elimination of the Predecessor company's equity accounts pursuant to fresh start accounting.

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CONSOLIDATED BUSINESS SEGMENTS (Details) (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Sales to external customers	260.50
Inter-segment sales	0
Depreciation and amortization	12.9
Restructuring (note 24)	0
Impairment and other closure costs (note 7)	8.2		661.8	294.5
Operating earnings (loss)	(5.7)
Total assets	978.8	1,040.1
Additions to property, plant and equipment	10.4
Corporate Adjustments [Member]
Sales to external customers	0
Inter-segment sales	(7.1)
Operating earnings (loss)	0
Total assets	0.2
Additions to property, plant and equipment	0
Specialty Printing Papers [Member]
Sales to external customers	171.80
Inter-segment sales	0
Depreciation and amortization	11.2
Operating earnings (loss)	1.2
Total assets	710.5
Additions to property, plant and equipment	6.5
Newsprint [Member]
Sales to external customers	44.00
Inter-segment sales	0
Depreciation and amortization	1.4
Operating earnings (loss)	2.4
Total assets	182.6
Additions to property, plant and equipment	1.8
Pulp [Member]
Sales to external customers	44.70
Inter-segment sales	7.1
Depreciation and amortization	0.3
Operating earnings (loss)	(9.3)
Total assets	85.5
Additions to property, plant and equipment	2.1
Predecessor [Member]
Sales to external customers		797.70	1,079.70	1,051.40	1,077.70	1,696.90
Inter-segment sales		0	0	0
Depreciation and amortization		23.4	112.4	119.3	137.3	159.8
Restructuring (note 24)		5.3	5.9	25.3	17.9	30.1
Impairment and other closure costs (note 7)		3.3	823.6	294.5	17.4	151.0
Operating earnings (loss)		24.8	(704.5)	(351.6)	(29.7)	(147.4)
Total assets		1,040.1	737.6	1,696.2	2,090.8	2,390.3
Additions to property, plant and equipment		12.2	19.7	11.2
Predecessor [Member] | Corporate Adjustments [Member]
Sales to external customers		0	0	0
Inter-segment sales		(22.5)	(39.3)	(23.4)
Depreciation and amortization		0	0	0
Restructuring (note 24)		0	0	0
Impairment and other closure costs (note 7)			0	0
Operating earnings (loss)		0		0
Total assets		0.2	13.3	14.5
Additions to property, plant and equipment		0	0	0
Predecessor [Member] | Specialty Printing Papers [Member]
Sales to external customers		503.80	690.40	674.00
Inter-segment sales		0	0	0
Depreciation and amortization		18.9	81.3	78.8
Restructuring (note 24)		2.9	4.0	8.2
Impairment and other closure costs (note 7)			507.2	104.4
Operating earnings (loss)		19.3	(565.1)	(149.7)
Total assets		761.1	432.0	1,046.0
Additions to property, plant and equipment		9.2	9.2	9.1
Predecessor [Member] | Newsprint [Member]
Sales to external customers		134.10	141.30	152.40
Inter-segment sales		0	0	0
Depreciation and amortization		2.7	9.1	16.6
Restructuring (note 24)		0.8	0.8	16.1
Impairment and other closure costs (note 7)			71.1	190.1
Operating earnings (loss)		11.7	(69.2)	(224.3)
Total assets		193.4	216.5	450.6
Additions to property, plant and equipment		1.2	6.1	1.8
Predecessor [Member] | Pulp [Member]
Sales to external customers		159.80	248.00	225.00
Inter-segment sales		22.5	39.3	23.4
Depreciation and amortization		1.8	15.1	14.3
Restructuring (note 24)		1.6	1.1	1.0
Impairment and other closure costs (note 7)			83.5	0
Operating earnings (loss)		(6.2)	(70.2)	22.4
Total assets		85.4	75.8	185.1
Additions to property, plant and equipment		1.8	4.4	0.3

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ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

12 Months Ended

Dec. 31, 2012

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

17. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

The components of accounts payable and accrued liabilities are as follows:

	Successor				Predecessor
	As at December 31		As at September 30		As at December 31
	2012		2012		2011
Trade payables	$	54.4	$	50.9	$	81.7
Accrued payroll and related liabilities		23.6		21.8		32.7
Accrued interest		11.7		5.6		33.2
Accrued benefit obligation – pension plan (note 19)		7.4		7.3		6.9
Accrued benefit obligation – other employee future benefit plans (note 19)		5.8		5.3		6.8
Property taxes, including taxes in arrears, interest and related parties		–		–		0.7
Restructuring (note 24)		0.3		0.4		1.2
Lease obligation – paper recycling – current portion		–		–		2.3
Payables related to capital projects		3.9		0.9		3.7
Other		6.7		5.3		5.3
	$	113.8	$	97.5	$	174.5

XML

STOCK-BASED COMPENSATION PLANS (Details 2) (CAD)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Number of options , Beginning of year	7,522,337	7,581,693	7,581,693
Number of options, Granted	0	234,000	5,080,647
Number of options, Exercised	0	0	0
Number of options, Forfeited	(54,000)	0	0
Number of options, Expired or cancelled	(7,468,337)	(293,356)	(472,505)
Number of options, End of year	0	7,522,337	7,581,693
Weighted average exercise price, Beginning of year (in dollars per share)	0.91	1	2.72
Weighted average exercise price, Granted (in dollars per share)	0	0.38	0.13
Weighted average exercise price, Exercised (in dollars per share)	0	0	0
Weighted average exercise price, Forfeited (in dollars per share)	0.38	0	0
Weighted average exercise price, Expired or cancelled (in dollars per share)	0.91	2.98	2.37
Weighted average exercise price, End of year (in dollars per share)	0	0.91	1

XML

ACCOUNTS RECEIVABLE (Tables)

12 Months Ended

Dec. 31, 2012

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

The components of accounts receivable are as follows:

	Successor					Predecessor
	As at December 31			As at September 30		As at December 31
	2012			2012		2011
Trade receivables	$	94.7		$	121.9	$	115.1
Less:  allowance for doubtful accounts		(2.2	)		–		(2.0	)
		92.5			121.9		113.1
Sales taxes receivable		12.6			12.7		7.5
Pulp and Paper Green Transformation Program receivable		–			–		6.9
Other receivables		8.9			6.2		7.4
	$	114.0		$	140.8	$	134.9

XML

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2012 Parent Company [Member]	Sep. 30, 2012 Parent Company [Member]	Dec. 31, 2011 Parent Company [Member]	Dec. 31, 2012 Guarantor Subsidiaries [Member]	Sep. 30, 2012 Guarantor Subsidiaries [Member]	Dec. 31, 2011 Guarantor Subsidiaries [Member]	Dec. 31, 2012 Non-Guarantor Subsidiaries [Member]	Sep. 30, 2012 Non-Guarantor Subsidiaries [Member]	Dec. 31, 2011 Non-Guarantor Subsidiaries [Member]	Dec. 31, 2012 Consolidation, Eliminations [Member]	Sep. 30, 2012 Consolidation, Eliminations [Member]	Dec. 31, 2011 Consolidation, Eliminations [Member]	Sep. 30, 2012 Predecessor [Member]	Dec. 31, 2011 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]	Dec. 31, 2008 Predecessor [Member]	Dec. 31, 2007 Predecessor [Member]	Dec. 31, 2011 Predecessor [Member] Parent Company [Member]	Dec. 31, 2010 Predecessor [Member] Parent Company [Member]	Dec. 31, 2009 Predecessor [Member] Parent Company [Member]	Dec. 31, 2011 Predecessor [Member] Guarantor Subsidiaries [Member]	Dec. 31, 2010 Predecessor [Member] Guarantor Subsidiaries [Member]	Dec. 31, 2009 Predecessor [Member] Guarantor Subsidiaries [Member]	Dec. 31, 2011 Predecessor [Member] Non-Guarantor Subsidiaries [Member]	Dec. 31, 2010 Predecessor [Member] Non-Guarantor Subsidiaries [Member]	Dec. 31, 2009 Predecessor [Member] Non-Guarantor Subsidiaries [Member]	Dec. 31, 2011 Predecessor [Member] Consolidation, Eliminations [Member]	Dec. 31, 2010 Predecessor [Member] Consolidation, Eliminations [Member]	Dec. 31, 2009 Predecessor [Member] Consolidation, Eliminations [Member]
Assets
Cash and cash equivalents	16.6	12.2	25.1	0.8	0.3	0	10.8	5.2	0	6.9	7.1	0	0	0	0	12.6	25.1	95.4	83.1	5.0	0	1.5	66.6	63.3	17.4	25.0	13.9	6.2	3.8	5.9	0	0	0
Restricted cash	0.7	3.7		0.7	3.6		0	0.1		0	0		0	0			0	0	0	0
Accounts receivable	114.0	140.8		2.3	1.9		111.0	138.8		0.7	0.1		0	0			134.9	120.6	101.5	221.7		7.9			126.7			0.3			0
Inventories	125.0	131.5		0	0		125.0	131.5		0	0		0	0			146.9	139.9	178.3	211.4		0			146.9			0			0
Prepaids and other	8.9	13.0		0.7	0.3		7.5	12.3		0.7	0.4		0	0			20.0	27.7	25.2	32.8		13.4			6.1			0.5			0
Assets held for sale	34.30	56.20		0	0		34.30	56.20		0	0		0	0			0	0	0	0
Assets, Current	299.5	357.4		4.5	6.1		286.7	343.7		8.3	7.6		0	0			326.9	383.6	388.1	470.9		22.8			297.1			7.0			0
Property, plant and equipment	611.60	614.10		387.10	390.50		76.00	76.20		148.50	147.40		0	0			386.30	1,285.60	1,664.70	1,854.40		226.20			63.10			97.00			0
Goodwill	56.70	56.70		56.70	56.70		0	0		0	0		0	0			0	0	0	0
Advances to related companies	0	0		234.2	239.7		348.2	295.9		(0.8)	1.0		(581.6)	(536.6)			0					255.1			237.3			2.1			(494.5)
Investments, net of equity loss in related companies	0	0		93.7	89.2		0	0		0	0		(93.7)	(89.2)			0					(139.6)			0			0			139.6
Other assets	11.00	11.90		24.30	25.10		9.70	10.80		0.60	0.60		(23.60)	(24.60)			24.40	27.00	38.00	65.00		33.90			0			0.70			(10.20)
Assets	978.8	1,040.1		800.5	807.3		720.6	726.6		156.6	156.6		(698.9)	(650.4)		1,040.1	737.6	1,696.2	2,090.8	2,390.3		398.4			597.5			106.8			(365.1)
Liabilities
Accounts payable and accrued liabilities	113.80	97.50		27.90	15.70		76.00	75.60		9.90	6.20		0	0			174.50	171.60	173.30	269.40		40.80			129.10			4.60			0
Current portion of long-term debt	6.6	6.7		6.5	6.6		0.1	0.1		0	0		0	0			466.8	27.0	1.0	75.8		466.6			0.2			0			0
Liabilities associated with assets held for sale	15.20	14.80		0	0		15.20	14.90		0	(0.10)		0	0			0	0	0	0
Liabilities, Current	135.6	119.0		34.4	22.3		91.3	90.6		9.9	6.1		0	0			641.3	198.6	174.3	345.2		507.4			129.3			4.6			0
Long-term debt	422.00	458.90		308.20	345.10		0	0		113.80	113.80		0	0			375.50	783.90	774.60	894.10		261.70			0			113.80			0
Advances from related companies	0	0		320.4	271.3		236.6	242.7		24.6	22.6		(581.6)	(536.6)			0					217.2			253.9			23.4			(494.5)
Employee future benefits	289.7	300.4		9.7	10.4		280.0	290.0		0	0		0	0			305.7	269.1	294.6	263.2		14.3			291.4			0			0
Other long-term obligations	8.9	9.0		5.2	5.4		3.7	3.6		0	0		0	0			19.2	20.2	13.4	13.3		5.5			13.7			0			0
Deferred income taxes	0	0		0	0		0	0		23.6	24.6		(23.6)	(24.6)			3.6	21.0	38.3	67.9		0			1.0			12.8			(10.2)
Deferred credits	0	0														0	9.6	9.6				9.6			0			0			0
Liabilities	856.2	887.3		677.9	654.5		611.6	626.9		171.9	167.1		(605.2)	(561.2)			1,354.9	1,292.8	1,295.2	1,583.7		1,015.7			689.3			154.6			(504.7)
Shareholders equity (deficit)
Common stock	144.9	144.9		144.9	144.9		0	0		0	0		0	0			1,035.2	1,035.0	1,035.0	1,035.0		1,035.2			623.7			(33.3)			(590.4)
Additional paid-in capital	0	0		0	0		0	0		0	0		0	0			16.6	16.6	16.4	14.6		16.6			222.1			4.7			(226.8)
Retained earnings (deficit)	(35.20)	0		(35.20)	0		3.50	0		(4.80)	0		1.30	0			(1,556.00)	(582.00)	(185.10)	(180.70)		(1,556.00)			(894.20)			(18.40)			912.60
Accumulated other comprehensive income (loss)	6.60	0		6.60	0		5.80	0		0	0		(5.80)	0			(89.40)	(46.10)	(52.70)	(46.40)		(89.40)			(43.40)			(0.80)			44.20
Predecessor equity	0	0		0	0		99.7	99.7		(10.5)	(10.5)		(89.2)	(89.2)
Stockholders' Equity Attributable to Parent	116.3	144.9		116.3	144.9		109.0	99.7		(15.3)	(10.5)		(93.7)	(89.2)			(593.6)	423.5	813.6	822.5		(593.6)			(91.8)			(47.8)			139.6
Non-controlling interest (deficit)	6.3	7.9		6.3	7.9		0	0		0	0		0	0			(23.7)	(20.1)	(18.0)	(15.9)		(23.7)			0			0			0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	122.60	152.80		122.60	152.80		109.00	99.70		(15.30)	(10.50)		(93.70)	(89.20)			(617.30)	403.40	795.60	806.60		(617.30)			(91.80)			(47.80)			139.60
Liabilities and Equity	978.8	1,040.1		800.5	807.3		720.6	726.6		156.6	156.6		(698.9)	(650.4)			737.6	1,696.2	2,090.8	2,390.3		398.4			597.5			106.8			(365.1)

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CONTINGENT LIABILITIES

12 Months Ended

Dec. 31, 2012

Loss Contingency [Abstract]

Contingencies Disclosure [Text Block]

34. CONTINGENT LIABILITIES

In the normal course of its business activities, the company is subject to a number of claims and legal actions that may be made by customers, suppliers and others. While the final outcome with respect to actions outstanding or pending as at December 31, 2012 cannot be predicted with certainty, the company believes an adequate provision has been made, or the resolution will not have a material effect on the company’s consolidated financial position, earnings or cash flows. Legal costs incurred in connection with contingent liabilities were expensed as incurred.

(a) Claim for Certain Post-Retirement Benefits

The Communications, Energy and Paperworkers Union of Canada Locals 1, 76, 592 and 686 (the Locals), representing hourly employees at the company’s Powell River and Port Alberni mills, applied to the Labour Relations Board of B.C. for a declaration that the company is responsible for certain post-retirement medical and extended health benefits for some retired employees who were represented by the Locals and who retired from MacMillan Bloedel Limited (now named Weyerhaeuser Canada Ltd.) prior to the company’s acquisition of Pacifica Papers Inc. which had acquired the Powell River and Port Alberni mills in 1998. The Labour Relations Board declined to rule on the Locals’ application or the company’s defense to the claim on the basis that this matter was a dispute under the collective agreement and, accordingly, a matter to be determined by arbitration. All four Locals subsequently filed grievances claiming that the company was responsible for these post-retirement benefits. The company did not agree with the Locals’ positions and contested the grievances. Local 76’s claim was dismissed by an arbitrator on December 23, 2010. The other three Locals withdrew their claims in 2011 and 2012. These claims are accordingly no longer outstanding.

(b) Short-term Incentive Plan Benefit Claim

In May 2010, a salaried employee of the company commenced an action against the company in the Supreme Court of B.C. seeking a payment under the company's 2009 Short-term Incentive Plan and damages in connection with the reduction of certain employee benefits announced in November 2009 and certification of the action as a class proceeding on behalf of all salaried employees who were entitled to Short-term Incentive Plan payments and affected by the reduction in benefits. The action was certified as a class proceeding on March 21, 2011, but only on behalf of those employees and former employees who had not provided the company with releases of the claims. Except for nine active employees and twelve employees who have left the company, all remaining salaried employees released the company from liability in respect of these claims or withdrew from the class action. The remaining claims were compromised under the Plan under the CCAA and payment made as unsecured claims in accordance with that process. This claim is accordingly no longer outstanding.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
	Dec. 31, 2012
Land, Buildings and Improvements [Member] | Minimum [Member]
Property Plant and Equipment Straight Line Basis	2.50%
Land, Buildings and Improvements [Member] | Maximum [Member]
Property Plant and Equipment Straight Line Basis	5.00%
Paper Machinery and Equipment [Member] | Minimum [Member]
Property Plant and Equipment Straight Line Basis	5.00%
Paper Machinery and Equipment [Member] | Maximum [Member]
Property Plant and Equipment Straight Line Basis	10.00%
Pulp Machinery and Equipment [Member] | Minimum [Member]
Property Plant and Equipment Straight Line Basis	5.00%
Pulp Machinery and Equipment [Member] | Maximum [Member]
Property Plant and Equipment Straight Line Basis	10.00%

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INVENTORIES (Details) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2012 Specialty Printing Papers [Member]	Sep. 30, 2012 Specialty Printing Papers [Member]	Dec. 31, 2012 Newsprint [Member]	Sep. 30, 2012 Newsprint [Member]	Dec. 31, 2012 Pulp [Member]	Sep. 30, 2012 Pulp [Member]	Dec. 31, 2011 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]	Dec. 31, 2008 Predecessor [Member]	Dec. 31, 2011 Predecessor [Member] Specialty Printing Papers [Member]	Dec. 31, 2011 Predecessor [Member] Newsprint [Member]	Dec. 31, 2011 Predecessor [Member] Pulp [Member]
Finished goods
Total finished goods	33.9	41.9	22.3	31.1	7.7	7.8	3.9	3.0	45.5				28.6	9.1	7.8
Work-in-progress	0.9	0.9							1.1
Raw materials - wood chips, pulp logs and other	23.1	21.1							26.3
Operating and maintenance supplies and spare parts	67.1	67.6							74.0
Inventory, Net	125.0	131.5							146.9	139.9	178.3	211.4

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FAIR VALUE MEASUREMENT

12 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

29. FAIR VALUE MEASUREMENT

Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value measurements for assets and liabilities required to be recorded at fair value, the company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of non-performance.

An established fair value hierarchy requires the company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is available and significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are:

Level 1  ─ Quoted prices in active markets for identical assets or liabilities.

Level 2  ─ Observable inputs other than quoted prices in active markets for identical assets and liabilities, such as quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3  ─ Inputs that are generally unobservable and are supported by little or no market activity and that are significant to the fair value determination of the assets or liabilities.

On September 30, 2012 the company restated its assets and liabilities at fair value in accordance with the requirements of fresh start accounting. The fair value estimates of cash and cash equivalents, restricted cash, accounts receivable and accounts payable and accrued liabilities incorporated level 2 inputs. The fair value estimates for substantially all other restated assets and liabilities were estimated incorporating level 3 inputs. See note 6, Creditor protection proceedings related disclosures for detailed disclosure on the valuation techniques and inputs incorporated in these fair value estimates.

The company did not have any currency or commodity contracts outstanding on December 31, 2012 or September 30, 2012. At December 31, 2011, the company had currency contracts that were not designated as hedging instruments with a total fair value of $4.5 million, of which the current portion of $2.0 million was classified as Prepaids and the non-current portion of $2.5 million was classified as Other assets.

The following table presents information about the fair value of the company’s derivative and non-derivative financial instruments measured at fair value on a recurring basis:

	Successor				Predecessor
	As at  December 31		As at  September 30		As at  December 31		Fair value		Balance sheet
	2012		2012		2011		hierarchy		classification
Assets
Currency contracts	$	–	$	–	$	2.0		21	Prepaids and other
Currency contracts		–		–		2.5		21	Other assets
Commodity contracts		–		–		0.5		22	Prepaids and other
	$	–	$	–	$	5.0
Liabilities
Commodity contracts	$	–	$	–	$	0.4		22	Accounts payable and accrued liabilities
Commodity contracts	$	–	$	–	$	0.2		22	Other long-term obligations
	$	–	$	–	$	0.6

Fair values of the company’s derivatives are classified under Level 2 as they are measured as follows:

1 The fair value of forward currency contracts is measured using the discounted difference between contractual rates and market future rates. Interest rates, forward market rates, and volatility are used as inputs for such valuation techniques. The company incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the counterparty’s non-performance risk in the fair value measurements.

2 The fair value of commodity swap contracts is measured using the discounted difference between contractual rates and market rates. The fair value of natural gas commodity options is measured using techniques derived from the Black-Scholes pricing model. The company incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the counterparty’s non-performance risk in the fair value measurements.

The following table presents information about the effects of the company’s derivative instruments previously designated as cash flow hedges until April 1, 2010 when hedge accounting was discontinued (note 3) and the effect of long-term debt designated as a hedge of the company’s net investment in the Snowflake mill on the company’s consolidated financial statements at December 31:

	Gain (loss) recognized in AOCI 1					(Gain) loss reclassified from AOCI 1					Classification on statement of earnings (loss) reclassified from AOCI 1	Gain (loss) recognized in income 2
	2012		2011			2012		2011				2012		2011
Derivatives designated as cash flow hedges
Currency contracts	$	–	$	–		$	–	$	(1.0	)	Other income (expense), net	$	–	$	–
Long-term debt designated as hedges of net investment	$	–	$	(2.0	)	$	–	$	(2.0	)	Foreign exchange gain(loss) on long-term debt	$	–	$	–

1 The gain (loss) recognized, or (gain) loss reclassified from AOCI relates to the effective portion of the hedge.

2 The gain (loss) recognized in income relates to the ineffective portion of the hedge and the amount excluded from effectiveness testing.

The following table presents information about the effects of the company’s derivative instruments designated as fair value hedges on the company’s consolidated financial statements for the year ended December 31:

	Gain (loss) recognized in income
	Successor		Predecessor				Classification on statement of earnings (loss)
	Three months ended		Nine months ended		Year ended
	December 31		September 30		December 31
	2012		2012		2011
Interest rate swaps	$	–	$	0.4	$	0.8	Interest expense, net (1)

(1) The portion of the gain (loss) that relates to the foreign exchange portion of the contract is included in Foreign exchange gain (loss) on long-term debt and is equal to $nil for December 31, 2012 (2011 – $nil).

The company has no fixed-to-floating interest rate swaps outstanding at December 31, 2012 or September 30, 2012. The gain recognized in income for the years presented represents the effective portion of interest rate swaps previously designated as fair value hedges that were unwound in prior years. The effective portion is being amortized to income over the remaining term to maturity of the related debt.

The following table presents information about the effects of the company’s derivative instruments not designated as hedging instruments on the company’s consolidated financial statements:

	Gain (loss) recognized in income
	Successor		Predecessor						Classification on statement of earnings (loss)
	Three months  ended		Nine months ended			Year ended
	December 31		September 30			December 31
	2012		2012			2011
Currency contracts related to revenue hedges	$	–	$	(1.1	)	$	(2.1	)	Other income (expense), net
Commodity swap contracts related to pulp and newsprint hedges		–		0.1			(0.6	)	Other income (expense), net
Commodity swap contracts related to natural gas and old newspaper hedges		–		(0.2	)		(0.7	)	Other income (expense), net
	$	–	$	(1.2	)	$	(3.4	)

Fair value of other financial instruments

The carrying value of the company’s cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair values because of the short-term maturity of these instruments.

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PREPAIDS AND OTHER (Tables)

12 Months Ended

Dec. 31, 2012

Prepayments and Other Current Assets [Abstract]

Schedule Of Prepaid Expenses and Other Current Assets [Table Text Block]

The components of prepaids and other are as follows:

	Successor				Predecessor
	As at December 31		As at September 30		As at December 31
	2012		2012		2011
Property taxes, insurance and licences	$	3.2	$	6.7	$	2.0
Derivative financial instruments		–		–		2.5
Deferred income tax assets (note 21)		–		–		13.1
Other		5.7		6.3		2.4
	$	8.9	$	13.0	$	20.0

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FAIR VALUE MEASUREMENT (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The following table presents information about the fair value of the company’s derivative and non-derivative financial instruments measured at fair value on a recurring basis:

	Successor				Predecessor
	As at  December 31		As at  September 30		As at  December 31		Fair value		Balance sheet
	2012		2012		2011		hierarchy		classification
Assets
Currency contracts	$	–	$	–	$	2.0		21	Prepaids and other
Currency contracts		–		–		2.5		21	Other assets
Commodity contracts		–		–		0.5		22	Prepaids and other
	$	–	$	–	$	5.0
Liabilities
Commodity contracts	$	–	$	–	$	0.4		22	Accounts payable and accrued liabilities
Commodity contracts	$	–	$	–	$	0.2		22	Other long-term obligations
	$	–	$	–	$	0.6

Fair values of the company’s derivatives are classified under Level 2 as they are measured as follows:

1 The fair value of forward currency contracts is measured using the discounted difference between contractual rates and market future rates. Interest rates, forward market rates, and volatility are used as inputs for such valuation techniques. The company incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the counterparty’s non-performance risk in the fair value measurements.

2 The fair value of commodity swap contracts is measured using the discounted difference between contractual rates and market rates. The fair value of natural gas commodity options is measured using techniques derived from the Black-Scholes pricing model. The company incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the counterparty’s non-performance risk in the fair value measurements.

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following table presents information about the effects of the company’s derivative instruments previously designated as cash flow hedges until April 1, 2010 when hedge accounting was discontinued (note 3) and the effect of long-term debt designated as a hedge of the company’s net investment in the Snowflake mill on the company’s consolidated financial statements at December 31:

	Gain (loss) recognized in AOCI 1					(Gain) loss reclassified from AOCI 1					Classification on statement of earnings (loss) reclassified from AOCI 1	Gain (loss) recognized in income 2
	2012		2011			2012		2011				2012		2011
Derivatives designated as cash flow hedges
Currency contracts	$	–	$	–		$	–	$	(1.0	)	Other income (expense), net	$	–	$	–
Long-term debt designated as hedges of net investment	$	–	$	(2.0	)	$	–	$	(2.0	)	Foreign exchange gain(loss) on long-term debt	$	–	$	–

1 The gain (loss) recognized, or (gain) loss reclassified from AOCI relates to the effective portion of the hedge.

2 The gain (loss) recognized in income relates to the ineffective portion of the hedge and the amount excluded from effectiveness testing.

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block]

The following table presents information about the effects of the company’s derivative instruments designated as fair value hedges on the company’s consolidated financial statements for the year ended December 31:

	Gain (loss) recognized in income
	Successor		Predecessor				Classification on statement of earnings (loss)
	Three months ended		Nine months ended		Year ended
	December 31		September 30		December 31
	2012		2012		2011
Interest rate swaps	$	–	$	0.4	$	0.8	Interest expense, net (1)

(1) The portion of the gain (loss) that relates to the foreign exchange portion of the contract is included in Foreign exchange gain (loss) on long-term debt and is equal to $nil for December 31, 2012 (2011 – $nil).

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]

The following table presents information about the effects of the company’s derivative instruments not designated as hedging instruments on the company’s consolidated financial statements:

	Gain (loss) recognized in income
	Successor		Predecessor						Classification on statement of earnings (loss)
	Three months  ended		Nine months ended			Year ended
	December 31		September 30			December 31
	2012		2012			2011
Currency contracts related to revenue hedges	$	–	$	(1.1	)	$	(2.1	)	Other income (expense), net
Commodity swap contracts related to pulp and newsprint hedges		–		0.1			(0.6	)	Other income (expense), net
Commodity swap contracts related to natural gas and old newspaper hedges		–		(0.2	)		(0.7	)	Other income (expense), net
	$	–	$	(1.2	)	$	(3.4	)

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CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details 2) (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Cash flows provided (used) by: Operations
Net earnings (loss)	(36.7)
Items not requiring (providing) cash
Depreciation and amortization	12.9
Impairment and other closure costs (note 7)	8.2		661.8	294.5
Deferred income taxes (note 21)	0.1
Foreign exchange loss (gain) on long-term debt	3.2
Non-cash reorganization items	2.4
Non-cash interest on compromised notes	0
Gain on cancellation of long-term debt (note 18)	0
Employee future benefits, expense over (under) cash contributions	(3.4)
Increase (decrease) in other long-term obligations	(0.1)
Loss (gain) on disposal of property, plant and equipment	(0.4)
Other	0.2
Cash flows provided (used) by operations	52.1	(44.0)
Investing
Additions to property, plant and equipment	(10.4)	12.2
Proceeds from sale of property, plant and equipment	0.8	11.5
Proceeds from termination of interest rate swaps	0
Decrease (increase) in restricted cash	(3.4)	(6.4)
Decrease (increase) in other assets	0	(3.7)
Cash flows provided (used) by investing activities	(6.2)	(3.4)
Financing
Share issuance costs	0	0.2
Increase (decrease) in revolving loan	(40.0)	16.0
Proceeds on issuance of senior secured notes (note 18)	0	33.1
Note exchange costs (note 18)	0
Increase (decrease) in advances to related companies	0	0
Deferred financing costs (note 18)	0	(9.3)
DIP financing costs	0	3.8
Decrease in other long-term debt	0	(0.9)
Distribution paid	0	0
Redemption of senior notes	0
Cash flows provided (used) by financing activities	(40.0)	34.9
Cash and cash equivalents, increase (decrease) in the year	5.9	(12.5)
Cash and cash equivalents, beginning of period	12.2	25.1
Cash and cash equivalents, end of period 1	16.6	12.2	25.1
Catalyst Paper Corporation [Member]
Cash flows provided (used) by: Operations
Net earnings (loss)	(39.6)
Items not requiring (providing) cash
Depreciation and amortization	8.8
Foreign exchange loss (gain) on long-term debt	3.2
Cash flows provided (used) by operations	(90.5)	119.1
Investing
Additions to property, plant and equipment	(4.2)	4.9
Proceeds from sale of property, plant and equipment	0	5.5
Decrease (increase) in restricted cash	2.9	(3.6)
Decrease (increase) in other assets		(2.6)
Cash flows provided (used) by investing activities	(1.3)	(0.4)
Financing
Share issuance costs		0.2
Increase (decrease) in revolving loan	(40.0)	16.0
Proceeds on issuance of senior secured notes (note 18)		33.1
Increase (decrease) in advances to related companies	132.3	(155.0)
Deferred financing costs (note 18)		(9.3)
DIP financing costs		3.8
Decrease in other long-term debt		(0.7)
Distribution paid	0	0
Cash flows provided (used) by financing activities	92.3	(119.9)
Cash and cash equivalents, increase (decrease) in the year	0.5	(1.2)
Cash and cash equivalents, beginning of period	0.3	0
Cash and cash equivalents, end of period 1	0.8	0.3
Subsidiary guarantors [Member]
Cash flows provided (used) by: Operations
Net earnings (loss)	3.2
Items not requiring (providing) cash
Depreciation and amortization	2.2
Foreign exchange loss (gain) on long-term debt	0
Cash flows provided (used) by operations	160.9	27.5
Investing
Additions to property, plant and equipment	(3.2)	4.6
Proceeds from sale of property, plant and equipment	0.8	6.0
Decrease (increase) in restricted cash	0.5	(2.8)
Decrease (increase) in other assets		(1.0)
Cash flows provided (used) by investing activities	(1.9)	(0.4)
Financing
Share issuance costs		0
Increase (decrease) in revolving loan	0	0
Proceeds on issuance of senior secured notes (note 18)		0
Increase (decrease) in advances to related companies	(153.8)	(95.4)
Deferred financing costs (note 18)		0
DIP financing costs		0
Decrease in other long-term debt		(0.2)
Distribution paid	0.4	56.3
Cash flows provided (used) by financing activities	(153.4)	(39.3)
Cash and cash equivalents, increase (decrease) in the year	5.6	(12.2)
Cash and cash equivalents, beginning of period	5.2	0
Cash and cash equivalents, end of period 1	10.8	5.2
Subsidiary non-guarantors [Member]
Cash flows provided (used) by: Operations
Net earnings (loss)	(4.4)
Items not requiring (providing) cash
Depreciation and amortization	1.9
Foreign exchange loss (gain) on long-term debt	0
Cash flows provided (used) by operations	(22.2)	38.2
Investing
Additions to property, plant and equipment	(3.0)	2.7
Proceeds from sale of property, plant and equipment	0	0
Decrease (increase) in restricted cash	0	0
Decrease (increase) in other assets		(0.1)
Cash flows provided (used) by investing activities	(3.0)	(2.6)
Financing
Share issuance costs		0
Increase (decrease) in revolving loan	0	0
Proceeds on issuance of senior secured notes (note 18)		0
Increase (decrease) in advances to related companies	25.4	21.6
Deferred financing costs (note 18)		0
DIP financing costs		0
Decrease in other long-term debt		0
Distribution paid	(0.4)	(56.3)
Cash flows provided (used) by financing activities	25.0	(34.7)
Cash and cash equivalents, increase (decrease) in the year	(0.2)	0.9
Cash and cash equivalents, beginning of period	7.1	0
Cash and cash equivalents, end of period 1	6.9	7.1
Eliminating entries [Member]
Cash flows provided (used) by: Operations
Net earnings (loss)	4.1
Items not requiring (providing) cash
Depreciation and amortization	0
Foreign exchange loss (gain) on long-term debt	0
Cash flows provided (used) by operations	3.9	(228.8)
Investing
Additions to property, plant and equipment	0	0
Proceeds from sale of property, plant and equipment	0	0
Decrease (increase) in restricted cash	0	0
Decrease (increase) in other assets		0
Cash flows provided (used) by investing activities	0	0
Financing
Share issuance costs		0
Increase (decrease) in revolving loan	0	0
Proceeds on issuance of senior secured notes (note 18)		0
Increase (decrease) in advances to related companies	(3.9)	228.8
Deferred financing costs (note 18)		0
DIP financing costs		0
Decrease in other long-term debt		0
Distribution paid	0	0
Cash flows provided (used) by financing activities	(3.9)	228.8
Cash and cash equivalents, increase (decrease) in the year	0	0
Cash and cash equivalents, beginning of period	0	0
Cash and cash equivalents, end of period 1	0	0
Predecessor [Member]
Cash flows provided (used) by: Operations
Net earnings (loss)		650.3	(976.6)	(398.2)	(5.6)	(219.0)
Items not requiring (providing) cash
Depreciation and amortization		23.4	112.4	119.3	137.3	159.8
Impairment and other closure costs (note 7)		3.3	823.6	294.5	17.4	151.0
Deferred income taxes (note 21)		(0.7)	(7.6)	(16.1)	(26.6)	(92.4)
Foreign exchange loss (gain) on long-term debt		(24.0)	9.7	(27.6)	(75.3)	82.2
Non-cash reorganization items		(707.4)	0	0	0	0
Non-cash interest on compromised notes		48.4	0	0	0	0
Gain on cancellation of long-term debt (note 18)		0	0	0.6	30.7	0
Employee future benefits, expense over (under) cash contributions		(8.4)	(8.0)	(2.4)	4.3	2.9
Increase (decrease) in other long-term obligations		0	(3.1)	(4.2)	(0.5)	(5.1)
Loss (gain) on disposal of property, plant and equipment		6.7	0.1	7.2	3.9	(0.4)
Other		2.6	(1.8)	10.3	4.6	(13.5)
Cash flows provided (used) by operations		(44.0)	(71.5)	(44.1)	103.6	78.1
Investing
Acquisition of Snowflake newsprint mill		0			0	(172.2)
Additions to property, plant and equipment		(12.2)	(19.7)	(11.2)	11.5	41.9
Proceeds from sale of property, plant and equipment		11.5	1.2	7.9	4.5	2.2
Proceeds from termination of interest rate swaps					0	7.6
Decrease (increase) in restricted cash		6.4	0	0	0	0
Decrease (increase) in other assets		3.7	0.8	(1.2)	(4.1)	1.0
Cash flows provided (used) by investing activities		(3.4)	(17.7)	(4.5)	(2.9)	(205.3)
Financing
Issue of shares, net of share issue costs					0	121.1
Share issuance costs		(0.2)	0	0	0	0
Increase (decrease) in revolving loan		16.0	48.0	(14.5)	(45.6)	60.1
Repayment of revolving operating loan				0	0	(47.1)
Repayment of long-term debt			25.8	0	(75.7)	0
Proceeds from long-term debt					95.0	0
Proceeds on issuance of senior secured notes (note 18)		33.1	0	98.4	0	0
Note exchange costs (note 18)		0	0	(8.3)	2.2	0
Proceeds on termination of debt foreign currency contracts					34.7	0
Increase (decrease) in advances to related companies			0	(141.5)
Proceeds on termination of debt hedges				0
Deferred financing costs (note 18)		(9.3)	(2.4)	(4.5)	(0.9)	(5.5)
Settlement on purchase of debt securities				(9.2)	(26.9)	0
DIP financing costs		(3.8)	0	0	0	0
Decrease in other long-term debt		(0.9)	(0.9)	(1.0)	(1.0)	(3.6)
Distribution paid			0	87.5
Redemption of senior notes		0	25.8	0
Cash flows provided (used) by financing activities		34.9	18.9	60.9	(22.6)	132.2
Cash and cash equivalents, increase (decrease) in the year		(12.5)	(70.3)	12.3	78.1	5.0
Cash and cash equivalents, beginning of period	12.6	25.1	95.4	83.1	5.0	0
Cash and cash equivalents, end of period 1		12.6	25.1	95.4	83.1	5.0
Predecessor [Member] | Catalyst Paper Corporation [Member]
Cash flows provided (used) by: Operations
Net earnings (loss)		473.4	(722.6)	(339.7)
Items not requiring (providing) cash
Depreciation and amortization		15.4	66.8	69.5
Impairment and other closure costs (note 7)			496.2	232.8
Foreign exchange loss (gain) on long-term debt		(24.0)	9.7	(27.6)
Cash flows provided (used) by operations			(427.3)	(153.9)
Investing
Additions to property, plant and equipment			7.8	2.9
Proceeds from sale of property, plant and equipment			0	0.4
Decrease (increase) in other assets			1.2	1.7
Cash flows provided (used) by investing activities			(9.0)	(4.2)
Financing
Increase (decrease) in revolving loan			48.0	0
Repayment of revolving operating loan				(14.5)
Repayment of long-term debt				0
Proceeds from long-term debt				0
Proceeds on issuance of senior secured notes (note 18)				98.4
Increase (decrease) in advances to related companies			352.3	99.5
Proceeds on termination of debt hedges				(8.3)
Deferred financing costs (note 18)			(2.4)	(4.5)
Settlement on purchase of debt securities				(9.2)
Decrease in other long-term debt			(0.9)	0
Dividends paid				0
Distribution paid			0	0
Redemption of senior notes			(25.8)
Cash flows provided (used) by financing activities			207.2	161.4
Cash and cash equivalents, increase (decrease) in the year			(65.1)	3.3
Cash and cash equivalents, beginning of period		1.5	66.6	63.3
Cash and cash equivalents, end of period 1			1.5	66.6
Predecessor [Member] | Subsidiary guarantors [Member]
Cash flows provided (used) by: Operations
Net earnings (loss)		216.2	(382.5)	(38.2)
Items not requiring (providing) cash
Depreciation and amortization		4.1	25.3	32.8
Impairment and other closure costs (note 7)			165.6	61.7
Foreign exchange loss (gain) on long-term debt		0	0	0
Increase (decrease) in other long-term obligations			0.2	1.5
Cash flows provided (used) by operations			(37.2)	66.1
Investing
Additions to property, plant and equipment			11.0	6.3
Proceeds from sale of property, plant and equipment			1.2	7.5
Decrease (increase) in other assets			(2.0)	(0.5)
Cash flows provided (used) by investing activities			(7.8)	1.7
Financing
Increase (decrease) in revolving loan			0	(14.9)
Repayment of revolving operating loan				14.5
Proceeds on issuance of senior secured notes (note 18)				0
Increase (decrease) in advances to related companies			131.3	41.5
Proceeds on termination of debt hedges				0
Deferred financing costs (note 18)			0	0
Settlement on purchase of debt securities				0
Decrease in other long-term debt			0	(1.0)
Dividends paid				(12.6)
Distribution paid			(94.1)	(85.7)
Redemption of senior notes			0
Cash flows provided (used) by financing activities			37.4	(56.7)
Cash and cash equivalents, increase (decrease) in the year			(7.6)	11.1
Cash and cash equivalents, beginning of period		17.4	25.0	13.9
Cash and cash equivalents, end of period 1			17.4	25.0
Predecessor [Member] | Subsidiary non-guarantors [Member]
Cash flows provided (used) by: Operations
Net earnings (loss)		92.6	(5.2)	(2.8)
Items not requiring (providing) cash
Depreciation and amortization		3.9	13.4	7.4
Impairment and other closure costs (note 7)			0	0
Foreign exchange loss (gain) on long-term debt		0	0	0
Increase (decrease) in other long-term obligations				1.5
Cash flows provided (used) by operations			5.3	2.7
Investing
Additions to property, plant and equipment			0.9	2.0
Proceeds from sale of property, plant and equipment			0	0
Decrease (increase) in other assets			0	0
Cash flows provided (used) by investing activities			(0.9)	(2.0)
Financing
Increase (decrease) in revolving loan			0	0
Repayment of revolving operating loan				0
Proceeds on issuance of senior secured notes (note 18)				0
Increase (decrease) in advances to related companies			0	0.5
Proceeds on termination of debt hedges				0
Deferred financing costs (note 18)			0	0
Settlement on purchase of debt securities				0
Decrease in other long-term debt			0	0
Dividends paid				0
Distribution paid			(1.8)	(1.8)
Redemption of senior notes			0
Cash flows provided (used) by financing activities			(2.0)	(2.8)
Cash and cash equivalents, increase (decrease) in the year			2.4	(2.1)
Cash and cash equivalents, beginning of period		6.2	3.8	5.9
Cash and cash equivalents, end of period 1			6.2	3.8
Predecessor [Member] | Eliminating entries [Member]
Cash flows provided (used) by: Operations
Net earnings (loss)		(131.9)	133.7	(17.5)
Items not requiring (providing) cash
Depreciation and amortization		0	0	0
Impairment and other closure costs (note 7)			0	0
Foreign exchange loss (gain) on long-term debt		0	0	0
Cash flows provided (used) by operations			387.7	(41.0)
Investing
Additions to property, plant and equipment			0	0
Proceeds from sale of property, plant and equipment			0	0
Decrease (increase) in other assets			0	0
Cash flows provided (used) by investing activities			0	0
Financing
Increase (decrease) in revolving loan			0
Proceeds on issuance of senior secured notes (note 18)				0
Increase (decrease) in advances to related companies			(483.6)	(141.5)
Proceeds on termination of debt hedges				0
Deferred financing costs (note 18)			0	0
DIP financing costs				0
Decrease in other long-term debt			0	0
Dividends paid				12.6
Distribution paid			95.9	87.5
Redemption of senior notes			0
Repayment of revolving operating loan				0
Cash flows provided (used) by financing activities			(387.7)	(41.0)
Cash and cash equivalents, increase (decrease) in the year			0	0
Cash and cash equivalents, beginning of period		0	0	0
Cash and cash equivalents, end of period 1			0	0

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EMPLOYEE FUTURE BENEFITS (Details 3) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012 Pension Plans, Defined Benefit [Member]	Sep. 30, 2012 Pension Plans, Defined Benefit [Member]	Dec. 31, 2012 Other Benefit Plans [Member]	Sep. 30, 2012 Other Benefit Plans [Member]	Dec. 31, 2011 Predecessor [Member] Pension Plans, Defined Benefit [Member]	Dec. 31, 2011 Predecessor [Member] Other Benefit Plans [Member]
Prior year service credits (costs)	0	0	0	0	(2.9)	25.0
Accumulated gain (loss)	4.6	0	2.0	0	(109.8)	(1.9)
Accumulated other comprehensive income (loss)	4.6	0	2.0	0	(112.7)	23.1

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FINANCIAL INSTRUMENTS (Details Textual) (CAD) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2012 Foreign Currency and Forward Contracts [Member]	Sep. 30, 2012 Foreign Currency and Forward Contracts [Member]	Dec. 31, 2011 Foreign Currency and Forward Contracts [Member]	Dec. 31, 2012 Swap [Member]	Sep. 30, 2012 Swap [Member]	Dec. 31, 2011 Swap [Member]	Dec. 31, 2011 Cost Risk Management Instruments [Member]
Description of Foreign Currency Exposure	The company's hedging policy for anticipated sales and accounts receivable includes 0% to 67% of 0- to 12-month and 0% to 25% of 13- to 24-month U.S. dollar net exposure. Hedges are layered in over time, increasing the portion of sales or accounts receivable hedged as it gets closer to the expected date of the sale or collection of the accounts receivable. The company's hedging policy for its U.S. dollar denominated debt includes 0% to 60% of U.S. dollar net exposure. Future U.S. dollar revenues also provide a partial natural hedge for U.S. dollar denominated debt.
Description of Price Risk Exposure	Price risk: The company's policy allows for hedges of newsprint and pulp to be placed on anticipated sales, and hedges of old newsprint to be placed on anticipated purchases and allows for anticipated purchases at 0% to 70% of 0- to 12-month, 0% to 60% of 13- to 24-month and 0% to 30% of 25- to 36-month of the net exposure for oil and natural gas. As of December 31, 2012 and September 30, 2012, the company did not have any outstanding commodity contracts outstanding.
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value		0	0	4.5	0	0	0.5	(0.6)

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

12 Months Ended

Dec. 31, 2012

Accumulated Other Comprehensive Income (Loss), Net Of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following table contains information about the company’s AOCI, net of taxes:

	Successor				Predecessor
	As at December 31		As at September 30		As at December 31
	2012		2012		2011
Unrecognized pension and other post-retirement benefit costs	$	6.6	$	–	$	(89.6	)
Foreign currency translation adjustments, net of related hedging activities 1		–		–		0.7
Unrecognized loss on interest rate hedges		–		–		(0.5	)
	$	6.6	$	–	$	(89.4	)

1 The accumulated net adjustment is comprised of non-taxable translation gain of $nil million (2011 – $2.3 million gain) and a net revaluation of long-term debt designated as a net investment hedge of $nil million loss (2011 – $1.6 million loss), net of tax of $nil million (2011 – $nil million). Effective October 1, 2011, the company no longer designates the net revaluation of long-term debt as a net investment hedge.

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MEASUREMENT UNCERTAINTY - IMPAIRMENT OF LONG-LIVED ASSETS (Tables)

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

Details Of Restructuring Costs and Asset Impairment Charges [Table Text Block]

2011

The following table provides the components of the impairment and other closure costs:

Buildings, plant and equipment	$	801.1
Land		10.8
Operating and maintenance supplies and spare parts inventory		10.1
		822.0
Other closure costs – operating lease at paper recycling operation		0.5
Other closure costs – Elk Falls landfill rehabilitation estimate		1.1
Total	$	823.6
Classification in consolidated statement of earnings (loss):
Impairment and other closure costs	$	661.8
Loss from discontinued operations net of tax		161.8
	$	823.6

2010

The following table provides the components of the impairment, severances and other closure costs:

Property, plant and equipment	$	272.5
Operating and maintenance supplies and spare parts inventory		20.3
		292.8
Less: impairment previously recorded on paper assets (prior to announcement of permanent closure)		(12.0	)
Severances		9.7
Other closure costs – operating lease at paper recycling operation		13.7
Total	$	304.2
Classification in consolidated statement of earnings (loss):
Impairment and other closure costs	$	294.5
Restructuring		9.7
	$	304.2

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NATURE OF OPERATIONS AND GOING CONCERN

12 Months Ended

Dec. 31, 2012

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1. NATURE OF OPERATIONS AND GOING CONCERN

Catalyst Paper Corporation, together with its subsidiaries and partnerships (collectively, the “company”) is a significant specialty mechanical printing papers and newsprint producer in North America. The company operates in three business segments.

Specialty printing papers	– Manufacture and sale of mechanical specialty printing papers
Newsprint	– Manufacture and sale of newsprint
Pulp	– Manufacture and sale of long-fibre Northern Bleached Softwood Kraft (“NBSK”) pulp.

The business segments of the company are strategic business units that offer different products. They are managed separately because each business requires different technology, capital expenditures, labour expertise and marketing strategies. Each segment is a significant component of the company’s sales and operating earnings.

The company owns and operates three manufacturing facilities located in the province of British Columbia (B.C.), Canada. On September 30, 2012 the company permanently shut down its recycle mill operations located in Snowflake, Arizona (note 9). Two other facilities, including a paper recycling facility, were permanently shut down during 2010. Inter-segment sales consist of pulp transfers at market prices. The primary market for the company’s paper products is North America. The primary markets for the company’s pulp products are Asia and Australasia.

Creditor protection proceedings

On January 31, 2012, Catalyst Paper Corporation and certain of its subsidiaries obtained an Initial Order from the Supreme Court of British Columbia (the Court) under the Companies’ Creditors Arrangement Act (CCAA). The company applied for recognition of the Initial Order under Chapter 15 of Title 11 of the US Bankruptcy Code. The company entered into a Debtor-In-Possession (DIP) Credit Agreement, pursuant to which a DIP Credit Facility of approximately $175 million was confirmed by the Court.

Emergence from Creditor Protection Proceedings

Catalyst Paper Corporation and all of its subsidiaries and partnership successfully emerged from creditor protection proceedings under CCAA and Chapter 15 of Title 11 of the US Bankruptcy Code on September 13, 2012 (emergence date). The company met all of the conditions to implement the second amended plan of arrangement (Plan) on the emergence date by securing exit financing consisting of a new asset-based loan facility (ABL Facility) and new floating rate senior secured notes (Floating Rate Notes). For additional information on the company’s emergence from creditor protection proceedings, see note 2, Creditor protection proceedings.

In accordance with FASB ASC 852, fresh start accounting was required upon the company’s emergence from the creditor protection proceedings because:

- The reorganization value of the assets of the Predecessor company (defined below) immediately prior to the approval of the Plan was less than the total of all post-petition liabilities and allowed claims, and

- The holders of the Predecessor company’s existing voting shares immediately prior to the approval of the Plan received less than 50% of the voting shares of the common stock of the Successor company (defined below).

FASB ASC 852 requires that fresh start accounting be applied on the latter of the date of approval of the plan of arrangement, or the date that all material conditions to implement the plan are met. The company’s application date for fresh start accounting was September 13, 2012, when exit financing was secured. However, the company elected to apply fresh start accounting effective September 30, 2012, to coincide with the timing of the third quarter close. The company evaluated events, transactions, and fluctuations in product prices, exchange rates and inflation rates between September 13, 2012, and September 30, 2012, and concluded that the use of an accounting convenience date of September 30, 2012 (convenience date) did not have a material impact on the company’s financial position, results of operations and cash flows. The application of fresh start accounting was therefore reflected in the company’s consolidated balance sheet as of September 30, 2012, and related fresh start accounting adjustments were included in the company’s consolidated statements of earnings (loss) for the nine months ended September 30, 2012.

The implementation of the Plan and the application of fresh start accounting materially changed the carrying amounts and classifications reported in the company’s financial statements, and resulted in the company effectively becoming a new entity for financial reporting purposes. Accordingly, the company’s consolidated financial statements for periods prior to September 30, 2012 are not comparable to consolidated financial statements prepared for periods subsequent to September 30, 2012. References to Successor or Successor company refer to the company on or after September 30, 2012, and references to Predecessor or Predecessor company refer to the company prior to September 30, 2012. Additionally, references to periods on or after September 30, 2012, refer to the Successor, and references to periods prior to September 30, 2012, refer to the Predecessor.

Going concern

The audited consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The creditor protection proceedings raised substantial doubt about the company’s ability to continue as a going concern. During these proceedings, the company’s ability to continue as a going concern was dependent on obtaining creditor and Court approval of a plan of arrangement, successful implementation of the plan of arrangement that would improve profitability, reduce the company’s debt burden and improve liquidity, and securing exit financing to replace the debtor in possession financing available to the company during the creditor protection proceedings. Management believes that the implementation of the Plan and the company’s emergence from creditor protection proceedings have resolved the substantial doubt regarding the appropriateness of the going concern basis of accounting.

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STOCK-BASED COMPENSATION PLANS (Details) (CAD) In Millions, unless otherwise specified	3 Months Ended				9 Months Ended	12 Months Ended		9 Months Ended	12 Months Ended		9 Months Ended	12 Months Ended		9 Months Ended	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2012 Stock Options [Member]	Dec. 31, 2012 Restricted Stock Units (Rsus) [Member]	Dec. 31, 2012 Deferred share units [Member]	Sep. 30, 2012 Predecessor [Member]	Dec. 31, 2011 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Sep. 30, 2012 Predecessor [Member] Stock Options [Member]	Dec. 31, 2011 Predecessor [Member] Stock Options [Member]	Dec. 31, 2010 Predecessor [Member] Stock Options [Member]	Sep. 30, 2012 Predecessor [Member] Restricted Stock Units (Rsus) [Member]	Dec. 31, 2011 Predecessor [Member] Restricted Stock Units (Rsus) [Member]	Dec. 31, 2010 Predecessor [Member] Restricted Stock Units (Rsus) [Member]	Sep. 30, 2012 Predecessor [Member] Deferred share units [Member]	Dec. 31, 2011 Predecessor [Member] Deferred share units [Member]	Dec. 31, 2010 Predecessor [Member] Deferred share units [Member]
Allocated Share-based Compensation Expense	0	0	0	0	0	0.3	0.5	0	0.2	0.2	0	0.1	0.3	0	0	0

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EMPLOYEE FUTURE BENEFITS (Details 8) (CAD) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended				9 Months Ended		12 Months Ended				3 Months Ended		12 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2011 Pulp and Paper Industry Pension Plan [Member]		Dec. 31, 2012 Pulp and Paper Industry Pension Plan [Member]		Dec. 31, 2011 Pulp and Paper Industry Pension Plan [Member]		Sep. 30, 2012 Pulp and Paper Industry Pension Plan [Member] Predecessor [Member]		Dec. 31, 2011 Pulp and Paper Industry Pension Plan [Member] Predecessor [Member]		Dec. 31, 2010 Pulp and Paper Industry Pension Plan [Member] Predecessor [Member]		Sep. 30, 2011 Pace Industry Union Management Pension Fund [Member]		Dec. 31, 2012 Pace Industry Union Management Pension Fund [Member]		Dec. 31, 2011 Pace Industry Union Management Pension Fund [Member]		Sep. 30, 2012 Pace Industry Union Management Pension Fund [Member] Predecessor [Member]		Dec. 31, 2011 Pace Industry Union Management Pension Fund [Member] Predecessor [Member]		Dec. 31, 2010 Pace Industry Union Management Pension Fund [Member] Predecessor [Member]
EIN / pension plan number 1			BCFIC -P085324 CRA -0394940	[1],[2]											11-6166763 -001	[1],[3]
Pension Protection Act Zone Status			Green	[2],[4]	Green	[2],[4]									Red	[3],[4]	Red	[3],[4]
FIP / RP status pending / implemented 3			NA	[2],[5]											NA	[3],[5]
Contributions by Catalyst paper	1.9	[2],[6]					6.8	[2],[6]	9.2	[2],[6]	8.9	[2],[6]	0.1	[3],[6]					0.7	[3],[6]	0.9	[3],[6]	0.9	[3],[6]
Surcharge imposed			No	[2]											No	[3]
Expiration date			Apr. 30, 2017	[2],[7]											Jan. 03, 2014	[3],[7]

[1] Employer identification number and three digit pension plan number, if applicable.

[2] Plan participants are members and former members of the Pulp Paper and Woodworkers of Canada (PPWC) and the Communication Energy and Paperworkers Union (CEP).

[3] Plan participants are members and former members of the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (United Steelworkers or USW).

[4] Funded status on each balance sheet date presented expressed as a zone status. Green status equals at least 80% funded, yellow status equals less than 80% funded and red status equals less than 65% funded.

[5] Indicates whether a funding improvement plan (FIP) or a rehabilitation plan (RP) is pending or has been implemented.

[6] The company's annual contributions to the Pulp and Paper Industry Pension Plan in each respective year were greater than 5% of total employer contributions. The company's annual contributions to the PACE Industry Union Management Pension Fund in each respective year were less than 5% of total employer contributions.

[7] Expiration date of collective bargaining agreement on December 31, 2012.

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RESTRUCTURING (Tables)

12 Months Ended

Dec. 31, 2012

Restructuring and Related Activities [Abstract]

Schedule of Restructuring and Related Costs [Table Text Block]

The following table provides the activity in the restructuring liability:

	Successor			Predecessor
	Three months ended			Nine months ended			Year ended
	December 31			September 30			December 31
	2012			2012			2011
Balance, beginning of period	$	0.4		$	1.3		$	3.3
Expensed in period		1.1			5.3			5.9
Disbursements		(0.6	)		(6.2	)		(7.9	)
Balance, end of period	$	0.9		$	0.4		$	1.3
Classification:
Accounts payable and accrued liabilities (note 17)	$	0.3		$	0.4		$	1.2
Liabilities associated with assets held for sale		0.6
Other long-term obligations (note 20)		–			–			0.1
	$	0.9		$	0.4		$	1.3

Schedule Of Restructuring Reserve By Year Of Initiatives [Table Text Block]

The following table provides restructuring liability by year of initiatives:

	Successor				Predecessor
	As at December 31		As at September 30		As at December 31
	2012		2012		2011
2009 and prior initiatives	$	0.2	$	0.2	$	0.2
2010 initiatives		–		–		0.1
2011 initiatives		–		–		1.0
2012 initiatives		0.7		0.2		–
	$	0.9	$	0.4	$	1.3

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INCOME TAXES (Details 5) (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012 Predecessor [Member]	Dec. 31, 2011 Predecessor [Member]
Unrecognized tax benefits, beginning of period	5.3	5.3	5.9
Current period tax positions	0	0	0.4
Settlements and lapse of statute of limitations	0	0	(1)
Unrecognized tax benefits, end of period	5.3	5.3	5.3

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INTEREST EXPENSE, NET (Details) (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Interest on long-term debt	10.8
Other	0.8
Interest Expense	11.6
Interest income	0
Interest expense, net	(11.6)
Predecessor [Member]
Interest on long-term debt		59.6	72.0	71.5
Other		0.8	1.5	0.8
Interest Expense		60.4	73.5	72.3
Interest income		(0.1)	(0.3)	(0.4)
Interest expense, net		(60.3)	(73.2)	(71.9)	(69.1)	(74.8)

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CONDENSED CONSOLIDATING FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2012

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Condensed Financial Statements [Text Block]

35. CONDENSED CONSOLIDATING FINANCIAL INFORMATION

The following information is presented as required under Rule 3-10 of Regulation S-X, in connection with the company’s 2017 Notes and Floating Rate Notes. The company has not presented separate financial statements and other disclosures concerning the guarantor subsidiaries because management has determined that such information will not be material to the holders of the Notes; however, the following condensed consolidating financial information is being provided for each of the periods ended December 31, 2012, September 30, 2012, December 31, 2011 and December 31, 2010. Investments in subsidiaries are accounted for on an equity basis. The principal elimination entries eliminate investments in subsidiaries and intercompany balances.

Supplemental Consolidating Balance Sheet

As at December 31, 2012 (successor)

	Catalyst Paper Corporation			Subsidiary guarantors		Subsidiary non-guarantors			Eliminating entries			Consolidated Catalyst Paper Corporation
Assets
Current assets
Cash and cash equivalents	$	0.8		$	8.9	$	6.9		$	–		$	16.6
Restricted Cash		0.7			–		–			–			0.7
Accounts receivable		2.3			111.0		0.7			–			114.0
Inventories		–			125.0		–			–			125.0
Prepaids and other		0.7			7.5		0.7			–			8.9
Assets held for sale		–			34.3		–			–			34.3
		4.5			286.7		8.3			–			299.5
Property, plant and equipment		387.1			76.0		148.5			–			611.6
Goodwill		56.7			–		–			–			56.7
Advances to related companies		234.2			348.2		(0.8	)		(581.6	)		–
Investments, net of equity loss in related companies		93.7			–		–			(93.7	)		–
Other assets		24.3			9.7		0.6			(23.6	)		11.0
	$	800.5		$	720.6	$	156.6		$	(698.9	)	$	978.8
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	27.9		$	76.0	$	9.9		$	–		$	113.8
Current portion of long-term debt		6.5			0.1		–			–			6.6
Liabilities associated with assets held for sale		–			15.2		–			–			15.2
		34.4			91.3		9.9			–			135.6
Long-term debt		308.2			–		113.8			–			422.0
Advances from related companies		320.4			236.6		24.6			(581.6	)		–
Employee future benefits		9.7			280.0		–			–			289.7
Other long-term obligations		5.2			3.7		–			–			8.9
Deferred income taxes		–			–		23.6			(23.6	)		–
		677.9			611.6		171.9			(605.2	)		856.2
Equity (Deficiency)
Shareholders’ equity (Deficiency)
Common stock		144.9			–		–			–			144.9
Additional paid-in capital		–			–		–			–			–
Retained earnings (deficit)		(35.2	)		3.5		(4.8	)		1.3			(35.2	)
Accumulated other comprehensive income (loss)		6.6			5.8		–			(5.8	)		6.6
Predecessor equity		–			99.7		(10.5	)		(89.2	)		–
		116.3			109.0		(15.3	)		(93.7	)		116.3
Non-controlling interest (deficit)		6.3			–		–			–			6.3
		122.6			109.0		(15.3	)		(93.7	)		122.6
	$	800.5		$	720.6	$	156.6		$	(698.9	)	$	978.8

Supplemental Consolidating Statement of Earnings (Loss)

For the three months ended December 31, 2012 (successor) 

	Catalyst Paper Corporation			Subsidiary guarantors			Subsidiary non-guarantors			Eliminating entries			Consolidated Catalyst Paper Corporation
Sales	$	–		$	260.6		$	4.6		$	(4.7	)	$	260.5
Operating expenses
Cost of sales, excluding depreciation and amortization		4.4			243.9			2.0			(4.7	)		245.6
Depreciation and amortization		8.8			2.2			1.9			–			12.9
Selling, general and administrative		4.6			3.1			–			–			7.7
		17.8			249.2			3.9			(4.7	)		266.2
Operating earnings (loss)		(17.8	)		11.4			0.7			–			(5.7	)
Interest expense, net		(4.6	)		(3.7	)		(3.3	)		–			(11.6	)
Foreign exchange loss on  long-term debt		(3.2	)		–			–			–			(3.2	)
Equity earnings in Partnership		8.8			–			–			(8.8	)		–
Other income (expense), net		1.4			(1.1	)		(0.2	)		–			0.1
Earnings (loss) before reorganization items and income taxes		(15.4	)		6.6			(2.8	)		(8.8	)		(20.4	)
Reorganization items, net		(10.6	)		8.7			(1.3	)		–			(3.2	)
Income (loss) before income taxes		(26.0	)		15.3			(4.1	)		(8.8	)		(23.6	)
Income tax expense (recovery)		0.7			0.6			(1.1	)		–			0.2
Earnings (loss) from continuing operations		(26.7	)		14.7			(3.0	)		(8.8	)		(23.8	)
Earnings (loss) from discontinued operations net of tax		(12.9	)		(11.5	)		(1.4	)		12.9			(12.9	)
Net earnings (loss)		(39.6	)		3.2			(4.4	)		4.1			(36.7	)
Net (earnings) loss attributable to non-controlling interest		1.5			–			–			–			1.5
Net earnings (loss) before equity in earnings (loss) of subsidiaries		(38.1	)		3.2			(4.4	)		4.1			(35.2	)
Equity in earnings (loss) of subsidiaries		2.9			–			–			(2.9	)		–
Net earnings (loss) attributable  to the company	$	(35.2	)	$	3.2		$	(4.4	)	$	1.2		$	(35.2	)

Supplemental Consolidating Statement of Cash Flows

For the three months ended December 31, 2012 (successor) 

	Catalyst Paper Corporation			Subsidiary guarantors			Subsidiary non-guarantors			Eliminating entries			Consolidated Catalyst Paper Corporation
Cash flows provided (used) by:
Operations
Cash flows provided (used) by operations	$	(90.5	)	$	160.9		$	(22.2	)	$	3.9		$	52.1
Investing
Additions to property, plant and equipment		(4.2	)		(3.2	)		(3.0	)		–			(10.4	)
Proceeds from sale of property, plant and equipment		–			0.8			–			–			0.8
Decrease in restricted cash		2.9			0.5			–			–			3.4
Cash flows provided (used) by operations		(1.3	)		(1.9	)		(3.0	)		–			(6.2	)
Financing
Increase (decrease) in advances to related companies		132.3			(153.8	)		25.4			(3.9	)		–
Decrease in revolving loan		(40.0	)		–			–			–			(40.0	)
Distribution received (paid)		–			0.4			(0.4	)		–			–
		92.3			(153.4	)		25.0			(3.9	)		(40.0	)
Cash and cash equivalents, increase (decrease) in the period		0.5			5.6			(0.2	)		–			5.9
Cash and cash equivalents, beginning of period		0.3			5.2			7.1			–			12.6
Cash and cash equivalents, end of period	$	0.8		$	10.8		$	6.9		$	–		$	18.5

Supplemental Consolidating Balance Sheet

As at September 30, 2012 (successor) 

	Catalyst Paper Corporation		Subsidiary guarantors		Subsidiary non-guarantors			Eliminating entries			Consolidated Catalyst Paper Corporation
Assets
Current assets
Cash and cash equivalents	$	0.3	$	4.8	$	7.1		$	–		$	12.2
Restricted cash		3.6		0.1		–			–			3.7
Accounts receivable		1.9		138.8		0.1			–			140.8
Inventories		–		131.5		–			–			131.5
Prepaids and other		0.3		12.3		0.4			–			13.0
Assets held for sale		–		56.2		–			–			56.2
		6.1		343.7		7.6			–			357.4
Property, plant and equipment		390.5		76.2		147.4			–			614.1
Goodwill		56.7		–		–			–			56.7
Advances to related companies		239.7		295.9		1.0			(536.6	)		–
Investments, net of equity loss in related companies		89.2		–		–			(89.2	)		–
Other assets		25.1		10.8		0.6			(24.6	)		11.9
	$	807.3	$	726.6	$	156.6		$	(650.4	)	$	1,040.1
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	15.7	$	75.6	$	6.2		$	–		$	97.5
Current portion of long-term debt		6.6		0.1		–			–			6.7
Liabilities associated with assets held for sale		–		14.9		(0.1	)		–			14.8
		22.3		90.6		6.1			–			119.0
Long-term debt		345.1		–		113.8			–			458.9
Advances from related companies		271.3		242.7		22.6			(536.6	)		–
Employee future benefits		10.4		290.0		–			–			300.4
Other long-term obligations		5.4		3.6		–			–			9.0
Deferred income taxes		–		–		24.6			(24.6	)		–
		654.5		626.9		167.1			(561.2	)		887.3
Equity (Deficiency)
Shareholders’ equity (Deficiency)
Common stock		144.9		–		–			–			144.9
Additional paid-in capital		–		–		–			–			–
Retained earnings (deficit)		–		–		–			–			–
Accumulated other comprehensive income (loss)		–		–		–			–			–
Predecessor equity		–		99.7		(10.5	)		(89.2	)		–
		144.9		99.7		(10.5	)		(89.2	)		144.9
Non-controlling interest (deficit)		7.9		–		–			–			7.9
		152.8		99.7		(10.5	)		(89.2	)		152.8
	$	807.3	$	726.6	$	156.6		$	(650.4	)	$	1,040.1

Supplemental Consolidating Statement of Earnings (Loss)

For the nine months ended September 30, 2012 (predecessor) 

	Catalyst Paper Corporation			Subsidiary guarantors			Subsidiary non-guarantors			Eliminating entries			Consolidated Catalyst Paper Corporation
Sales	$	–		$	797.7		$	15.6		$	(15.6	)	$	797.7
Operating expenses
Cost of sales, excluding depreciation and amortization		13.2			715.3			5.1			(15.6	)		718.0
Depreciation and amortization		15.4			4.1			3.9			–			23.4
Selling, general and administrative		13.8			12.4			–			–			26.2
Restructuring		5.3			–			–			–			5.3
		47.7			731.8			9.0			(15.6	)		772.9
Operating earnings (loss)		(47.7	)		65.9			6.6			–			24.8
Interest expense, net		(30.5	)		(20.0	)		(9.8	)		–			(60.3	)
Foreign exchange gain on long-term debt		24.0			–			–			–			24.0
Equity earnings in Partnership		79.8			–			–			(79.8	)		–
Other income (expense), net		(53.1	)		54.6			51.6			(55.7	)		(2.6	)
Earnings (loss) before reorganization items and income taxes		(27.5	)		100.5			48.4			(135.5	)		(14.1	)
Reorganization items, net		512.9			98.4			55.6			–			666.9
Income (loss) before income taxes		485.4			198.9			104.0			(135.5	)		652.8
Income tax expense (recovery)		8.4			(21.4	)		11.9			–			(1.1	)
Earnings (loss) from continuing operations		477.0			220.3			92.1			(135.5	)		653.9
Earnings (loss) from discontinued operations, net of tax		(3.6	)		(4.1	)		0.5			3.6			(3.6	)
Net earnings (loss)		473.4			216.2			92.6			(131.9	)		650.3
Net (earnings) loss attributable to non-controlling interest		(31.9	)		–			–			–			(31.9	)
Net earnings (loss) before equity in earnings (loss) of subsidiaries		441.5			216.2			92.6			(131.9	)		618.4
Equity in earnings (loss) of subsidiaries		176.9			–			–			(176.9	)		–
Net earnings (loss) attributable  to the company	$	618.4		$	216.2		$	92.6		$	(308.8	)	$	618.4

Supplemental Consolidating Statement of Cash Flows

For the nine months ended September 30, 2012 (successor) 

	Catalyst Paper Corporation			Subsidiary guarantors			Subsidiary non-guarantors			Eliminating entries			Consolidated  Catalyst Paper Corporation
Cash flows provided (used) by:
Operations
Cash flows provided (used) by operations	$	119.1		$	27.5		$	38.2		$	(228.8	)	$	(44.0	)
Investing
Additions to property, plant and equipment		(4.9	)		(4.6	)		(2.7	)		–			(12.2	)
Proceeds from sale of property, plant and equipment		5.5			6.0			–			–			11.5
Increase in restricted cash		(3.6	)		(2.8	)		–			–			(6.4	)
Decrease in other assets		2.6			1.0			0.1			–			3.7
Cash flows used by investing activities		(0.4	)		(0.4	)		(2.6	)		–			(3.4	)
Financing
Increase (decrease) in advances to related companies		(155.0	)		(95.4	)		21.6			228.8			–
Increase in revolving loan		16.0			–			–			–			16.0
Proceeds on issuance of senior secured notes		33.1			–			–			–			33.1
Deferred financing costs		(9.3	)		–			–			–			(9.3	)
DIP financing costs		(3.8	)		–			–			–			(3.8	)
Decrease in other long-term debt		(0.7	)		(0.2	)		–			–			(0.9	)
Share issuance costs		(0.2	)		–			–			–			(0.2	)
Distribution received (paid)		–			56.3			(56.3	)		–			–
Cash flows provided (used) by financing activities		(119.9	)		(39.3	)		(34.7	)		228.8			34.9
Cash and cash equivalents, increase (decrease) in the period		(1.2	)		(12.2	)		0.9			–			(12.5	)
Cash and cash equivalents, beginning of the period		1.5			17.4			6.2			–			25.1
Cash and cash equivalents, end of period	$	0.3		$	5.2		$	7.1		$	–		$	12.6

Supplemental Consolidating Balance Sheet

As at December 31, 2011 (predecessor) 

	Catalyst Paper Corporation			Subsidiary guarantors			Subsidiary non-guarantors			Eliminating entries			Consolidated Catalyst Paper Corporation
Assets
Current assets
Cash and cash equivalents	$	1.5		$	17.4		$	6.2		$	–		$	25.1
Accounts receivable		7.9			126.7			0.3			–			134.9
Inventories		–			146.9			–			–			146.9
Prepaids and other		13.4			6.1			0.5			–			20.0
		22.8			297.1			7.0			–			326.9
Property, plant and equipment		226.2			63.1			97.0			–			386.3
Advances to related companies		255.1			237.3			2.1			(494.5	)		–
Investments in related companies		(139.6	)		–			–			139.6			–
Other assets		33.9			–			0.7			(10.2	)		24.4
	$	398.4		$	597.5		$	106.8		$	(365.1	)	$	737.6
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	40.8		$	129.1		$	4.6		$	–		$	174.5
Current portion of long-term debt		466.6			0.2			–			–			466.8
		507.4			129.3			4.6			–			641.3
Long-term debt		261.7			–			113.8			–			375.5
Advances from related companies		217.2			253.9			23.4			(494.5	)		–
Employee future benefits		14.3			291.4			–			–			305.7
Other long-term obligations		5.5			13.7			–			–			19.2
Deferred income taxes		–			1.0			12.8			(10.2	)		3.6
Deferred credits		9.6			–			–			–			9.6
		1,015.7			689.3			154.6			(504.7	)		1,354.9
Equity
Shareholders’ equity
Common stock		1,035.2			623.7			(33.3	)		(590.4	)		1,035.2
Additional paid-in capital		16.6			222.1			4.7			(226.8	)		16.6
Retained earnings (deficit)		(1,556.0	)		(894.2	)		(18.4	)		912.6			(1,556.0	)
Accumulated other comprehensive income (loss)		(89.4	)		(43.4	)		(0.8	)		44.2			(89.4	)
		(593.6	)		(91.8	)		(47.8	)		139.6			(593.6	)
Non-controlling interest (deficit)		(23.7	)		–			–			–			(23.7	)
		(617.3	)		(91.8	)		(47.8	)		139.6			(617.3	)
	$	398.4		$	597.5		$	106.8		$	(365.1	)	$	737.6

Supplemental Consolidating Statement of Earnings (Loss)

For the year ended December 31, 2011 (predecessor) 

	Catalyst Paper Corporation			Subsidiary guarantors			Subsidiary non-guarantors			Eliminating entries			Consolidated Catalyst Paper Corporation
Sales	$	–		$	1,079.7		$	23.4		$	(23.4	)	$	1,079.7
Operating expenses
Cost of sales, excluding depreciation and amortization		20.4			966.7			7.0			(23.4	)		970.7
Depreciation and amortization		66.8			25.3			13.4			–			105.5
Selling, general and administrative		20.1			20.1			0.1			–			40.3
Restructuring		5.9			–			–			–			5.9
Impairment and other closure costs		496.2			165.6			–			–			661.8
		609.4			1,177.7			20.5			(23.4	)		1,784.2
Operating earnings (loss)		(609.4	)		(98.0	)		2.9			–			(704.5	)
Interest expense, net		(33.3	)		(28.6	)		(11.3	)		–			(73.2	)
Foreign exchange loss on long-term debt		(9.7	)		–			–			–			(9.7	)
Equity earnings in Partnership		61.8			–			–			(61.8	)		–
Other income (expense), net		5.7			(8.1	)		0.3			–			(2.1	)
Income (loss) before income taxes		(584.9	)		(134.7	)		(8.1	)		(61.8	)		(789.5	)
Income tax expense (recovery)		(57.8	)		52.3			(2.9	)		–			(8.4	)
Earnings (loss) from continuing operations		(527.1	)		(187.0	)		(5.2	)		(61.8	)		(781.1	)
Earnings (loss) from discontinued operations, net of tax		(195.5	)		(195.5	)		–			195.5			(195.5	)
Net earnings (loss)		(722.6	)		(382.5	)		(5.2	)		133.7			(976.6	)
Net (earnings) loss attributable to non-controlling interest		2.6			–			–			–			2.6
Net earnings (loss) before equity in earnings (loss) of subsidiaries	$	(720.0	)	$	(382.5	)	$	(5.2	)	$	133.7		$	(974.0	)
Equity in earnings (loss) of subsidiaries		(254.0	)		–			–			254.0			–
Net earnings (loss) attributable to the company	$	(974.0	)	$	(382.5	)	$	(5.2	)	$	387.7		$	(974.0	)

Supplemental Condensed Consolidating Statement of Cash Flows

For the year ended December 31, 2011 (predecessor) 

	Catalyst Paper Corporation			Subsidiary guarantors			Subsidiary non-guarantors			Eliminating entries			Consolidated  Catalyst Paper Corporation
Cash flows provided (used) by:
Operations
Cash flows provided (used) by operations	$	(427.3	)	$	(37.2	)	$	5.3		$	387.7		$	(71.5	)
Investing
Additions to property, plant and equipment		(7.8	)		(11.0	)		(0.9	)		–			(19.7	)
Proceeds from sale of property, plant and equipment		–			1.2			–			–			1.2
Decrease (increase) in other assets		(1.2	)		2.0			–			–			0.8
Cash flows used by investing activities		(9.0	)		(7.8	)		(0.9	)		–			(17.7	)
Financing
Increase in advances to related companies		352.3			131.3			–			(483.6	)		–
Increase (decrease) in long-term obligations		–			0.2			(0.2	)		–			–
Increase in revolving loan		48.0			–			–			–			48.0
Redemption of senior notes		(25.8	)		–			–			–			(25.8	)
Deferred financing costs		(2.4	)		–			–			–			(2.4	)
Decrease in other long-term debt		(0.9	)		–			–			–			(0.9	)
Distribution paid		–			(94.1	)		(1.8	)		95.9			–
Cash flows provided (used) by financing activities		207.2			37.4			(2.0	)		(387.7	)		18.9
Cash and cash equivalents, increase (decrease) during year		(65.1	)		(7.6	)		2.4			–			(70.3	)
Cash and cash equivalents, beginning of year		66.6			25.0			3.8			–			95.4
Cash and cash equivalents, end of year	$	1.5		$	17.4		$	6.2		$	–		$	25.1

Supplemental Consolidating Statement of Earnings (Loss)

For the year ended December 31, 2010 (predecessor) 

	Catalyst Paper Corporation			Subsidiary guarantors			Subsidiary non-guarantors			Eliminating entries			Consolidated Catalyst Paper Corporation
Sales	$	–		$	1,051.5		$	20.4		$	(20.5	)	$	1,051.4
Operating expenses
Cost of sales, excluding depreciation and amortization		29.1			915.0			6.5			(20.5	)		930.1
Depreciation and amortization		69.5			32.8			7.4			–			109.7
Selling, general and administrative		22.6			20.8			–			–			43.4
Restructuring		–			25.3			–			–			25.3
Impairment and other closure costs		232.8			61.7			–			–			294.5
		354.0			1,055.6			13.9			(20.5	)		1,403.0
Operating earnings (loss)		(354.0	)		(4.1	)		6.5			–			(351.6	)
Interest expense, net		(32.7	)		(28.4	)		(10.8	)		–			(71.9	)
Foreign exchange gain on long-term debt		27.6			–			–			–			27.6
Equity earnings in Partnership		37.0			–			–			(37.0	)		–
Other income (expense), net		(11.4	)		8.9			(0.1	)		–			(2.6	)
Earnings (loss) before income taxes		(333.5	)		(23.6	)		(4.4	)		(37.0	)		(398.5	)
Income tax recovery		(13.3	)		(4.9	)		(1.6	)		–			(19.8	)
Earnings (loss) from continuing operations		(320.2	)		(18.7	)		(2.8	)		(37.0	)		(378.7	)
Loss from discontinued operations, net of tax		(19.5	)		(19.5	)		–			19.5			(19.5	)
Net earnings (loss)		(339.7	)		(38.2	)		(2.8	)		(17.5	)		(398.2	)
Net (earnings) loss attributable to non-controlling interest		1.3			–			–			–			1.3
Net earnings (loss) before equity in earnings (loss) of subsidiaries		(338.4	)		(38.2	)		(2.8	)		(17.5	)		(396.9	)
Equity in earnings (loss) of subsidiaries		(58.5	)		–			–			58.5			–
Net earnings (loss) attributable to the company	$	(396.9	)	$	(38.2	)	$	(2.8	)	$	41.0		$	(396.9	)

Supplemental Condensed Consolidating Statement of Cash Flows

For the year ended December 31, 2010 (predecessor) 

	Catalyst Paper Corporation			Subsidiary guarantors			Subsidiary non-guarantors			Eliminating entries			Consolidated  Catalyst Paper Corporation
Cash flows provided (used) by:
Operations
Cash flows provided (used) by operations	$	(153.9	)	$	66.1		$	2.7		$	41.0		$	(44.1	)
Investing
Additions to property, plant and equipment		(2.9	)		(6.3	)		(2.0	)		–			(11.2	)
Proceeds from sale of property, plant and equipment		0.4			7.5			–			–			7.9
Decrease (increase) in other assets		(1.7	)		0.5			–			–			(1.2	)
Cash flows provided (used) by investing activities		(4.2	)		1.7			(2.0	)		–			(4.5	)
Financing
Increase (decrease) in advances to related companies		99.5			41.5			0.5			(141.5	)		–
Increase (decrease) in long-term obligations		–			1.5			(1.5	)		–			–
Increase (decrease) in revolving loan		–			(14.9	)		–			0.4			(14.5	)
Proceeds on issuance of senior secured notes		98.4			–			–			–			98.4
Proceeds on termination of debt hedges		(8.3	)		–			–			–			(8.3	)
Deferred financing costs		(4.5	)		–			–			–			(4.5	)
Settlement on purchase of senior notes		(9.2	)		–			–			–			(9.2	)
Decrease in other long-term debt		–			(1.0	)		–			–			(1.0	)
Dividends paid		–			(12.6	)		–			12.6			–
Distribution paid		–			(85.7	)		(1.8	)		87.5			–
Repayment of revolving operating loan		(14.5	)		14.5			–			–			–
Cash flows provided (used) by financing activities		161.4			(56.7	)		(2.8	)		(41.0	)		60.9
Cash and cash equivalents, increase (decrease) during year		3.3			11.1			(2.1	)		–			12.3
Cash and cash equivalents, beginning of year		63.3			13.9			5.9			–			83.1
Cash and cash equivalents, end of year	$	66.6		$	25.0		$	3.8		$	–		$	95.4

CONSOLIDATED BALANCE SHEETS

(In millions of Canadian dollars)

	Successor					Predecessor
	As at  December 31			As at  September 30		As at  December 31			As at December 31
	2012			2012		2011			2010			2009			2008
Assets
Current assets
Cash and cash equivalents	$	16.6		$	12.2	$	25.1		$	95.4		$	83.1		$	5.0
Restricted cash		0.7			3.7		–			–			–			–
Accounts receivable		114.0			140.8		134.9			120.6			101.5			221.7
Inventories		125.0			131.5		146.9			139.9			178.3			211.4
Prepaids and other		8.9			13.0		20.0			27.7			25.2			32.8
Assets held for sale		34.3			56.2		–			–			–			–
		299.5			357.4		326.9			383.6			388.1			470.9
Property, plant and equipment		611.6			614.1		386.3			1,285.6			1,664.7			1,854.4
Goodwill		56.7			56.7		–			–			–			–
Other assets		11.0			11.9		24.4			27.0			38.0			65.0
	$	978.8		$	1,040.1	$	737.6		$	1,696.2		$	2,090.8		$	2,390.3
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	113.8		$	97.5	$	174.5		$	171.6		$	173.3		$	269.4
Current portion of long-term debt		6.6			6.7		466.8			27.0			1.0			75.8
Liabilities associated with assets held for sale		15.2			14.8		–			–			–			–
		135.6			119.0		641.3			198.6			174.3			345.2
Long-term debt		422.0			458.9		375.5			783.9			774.6			894.1
Employee future benefits		289.7			300.4		305.7			269.1			294.6			263.2
Other long-term obligations		8.9			9.0		19.2			20.2			13.4			13.3
Deferred income taxes/deferred credits		–			–		13.2			21.0			38.3			67.9
		856.2			887.3		1,354.9			1,292.8			1,295.2			1,583.7
Equity
Shareholders’ equity (deficit)
Common stock		144.9			144.9		1,035.2			1,035.0			1,035.0			1,035.0
Additional paid-in-capital		–			–		16.6			16.6			16.4			14.6
Retained earnings (deficit)		(35.2	)		–		(1,556.0	)		(582.0	)		(185.1	)		(180.7	)
Accumulated other comprehensive  income (loss)		6.6			–		(89.4	)		(46.1	)		(52.7	)		(46.4	)
		116.3			144.9		(593.6	)		423.5			813.6			822.5
Non-controlling interest (deficit)		6.3			7.9		(23.7	)		(20.1	)		(18.0	)		(15.9	)
		122.6			152.8		(617.3	)		403.4			795.6			806.6
	$	978.8		$	1,040.1	$	737.6		$	1,696.2		$	2,090.8		$	2,390.3

CONSOLIDATED STATEMENTS OF EARNINGS

(In millions of Canadian dollars)

	Successor			Predecessor
	Three months ended December 31			Nine months ended September 30			Years ended December 31
	2012			2012			2011			2010			2009			2008
Sales	$	260.5		$	797.7		$	1,079.7		$	1,051.4		$	1,077.7		$	1,696.9
Operating expenses
Cost of sales, excluding depreciation and amortization		245.6			718.0			970.7			930.1			890.0			1,456.5
Depreciation and amortization		12.9			23.4			105.5			109.7			137.3			159.8
Selling, general and administrative		7.7			26.2			40.3			43.4			44.8			46.9
Restructuring and change-of-control		–			5.3			5.9			25.3			17.9			30.1
Impairment		–			–			661.8			294.5			17.4			151.0
		266.2			772.9			1,784.2			1,403.0			1,107.4			1,844.3
Operating earnings (loss)		(5.7	)		24.8			(704.5	)		(351.6	)		(29.7	)		(147.4	)
Interest expense, net		(11.6	)		(60.3	)		(73.2	)		(71.9	)		(69.1	)		(74.8	)
Gain on cancellation of long-term debt		–			–			–			–			30.7			–
Foreign exchange gain (loss) on long-term debt		(3.2	)		24.0			(9.7	)		27.6			75.3			(82.2	)
Other income (expense), net		0.1			(2.6	)		(2.1	)		(2.6	)		(28.6	)		(15.7	)
Loss before reorganization items and income taxes		(20.4	)		(14.1	)		(789.5	)		(398.5	)		(21.4	)		(320.1	)
Reorganization items, net		(3.2	)		666.9			–			–			–			–
Income (loss) before income taxes		(23.6	)		652.8			(789.5	)		(398.5	)		(21.4	)		(320.1	)
Income tax expense (recovery)		0.2			(1.1	)		(8.4	)		(19.8	)		(23.1	)		(90.7	)
Earnings (loss) from continuing operations		(23.8	)		653.9			(781.1	)		(378.7	)		1.7			(229.4	)
Gain (loss) from discontinued operations net of tax		(12.9	)		(3.6	)		(195.5	)		(19.5	)		(7.3	)		10.4
Net earnings (loss)		(36.7	)		650.3			(976.6	)		(398.2	)		(5.6	)		(219.0	)
Net (earnings) loss attributable to non-controlling interest		1.5			(31.9	)		2.6			1.3			1.2			(0.8	)
Net earnings (loss) attributable to the Company	$	(35.2	)	$	618.4		$	(974.0	)	$	(396.9	)	$	(4.4	)	$	(219.8	)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions of Canadian dollars)

	Successor			Predecessor
	Three months ended December 31			Nine months ended September 30			Years ended December 31
	2012			2012			2011			2010			2009			2008
Cash flows provided (used) by:
Operations
Net earnings (loss)	$	(36.7	)	$	650.3		$	(976.6	)	$	(398.2	)	$	(5.6	)	$	(219.0	)
Items not requiring (providing) cash
Depreciation and amortization		12.9			23.4			112.4			119.3			146.6			165.8
Impairment and other closure costs		8.2			3.3			823.6			294.5			17.4			151.0
Deferred income taxes		0.1			(0.7	)		(7.6	)		(16.1	)		(26.6	)		(92.4	)
Foreign exchange loss (gain) on long-term debt		3.2			(24.0	)		9.7			(27.6	)		(75.3	)		82.2
Non-cash reorganization items		2.4			(707.4	)		–			–			–			–
Non-cash interest on compromised notes		–			48.4			–			–			–			–
Gain on cancellation of long-term debt		–			–			–			(0.6	)		(30.7	)		–
Employee future benefits, expense over (under) cash contributions		(3.4	)		(8.4	)		(8.0	)		(2.4	)		4.3			2.9
Increase (decrease) in other long-term obligations		(0.1	)		–			(3.1	)		(4.2	)		(0.5	)		(5.1	)
Loss (gain) on disposal of property, plant and equipment		0.4			(6.7	)		(0.1	)		(7.2	)		3.9			(0.4	)
Other		0.2			2.6			(1.8	)		10.9			4.6			(13.5	)
Changes in non-cash working capital		64.9			(24.8	)		(20.0	)		(12.5	)		65.5			6.6
Cash flows provided (used) by operations		52.1			(44.0	)		(71.5	)		(44.1	)		103.6			78.1
Investing
Acquisition of Snowflake newsprint mill		–			–			–			–			–			(172.2	)
Additions to property, plant and equipment		(10.4	)		(12.2	)		(19.7	)		(11.2	)		(11.5	)		(41.9	)
Proceeds from sale of property, plant and equipment		0.8			11.5			1.2			7.9			4.5			2.2
Proceeds from termination of interest rate swaps		–			–			–			–			–			7.6
Decrease (increase) in restricted cash		3.4			(6.4	)		–			–			–			–
Decrease (increase) in other assets		–			3.7			0.8			(1.2	)		4.1			(1.0	)
Cash flows provided (used) by investing activities		(6.2	)		(3.4	)		(17.7	)		(4.5	)		(2.9	)		(205.3	)
Financing
Issue of shares, net of share issue costs		–			–			–			–			–			121.1
Share issue costs		–			(0.2	)		–			–			–			–
Increase (decrease) in revolving loan and loan payable		(40.0	)		16.0			48.0			(14.5	)		(45.6	)		60.1
Repayment of revolving operating loan		–			–			–			–			–			(47.1	)
Repayment of long-term debt		–			–			(25.8	)		–			(75.7	)		–
Proceeds from long-term debt		–			–			–			–			95.0			–
Proceeds on issuance of senior secured notes		–			33.1			–			98.4			–			–
Note exchange costs		–			–			–			(8.3	)		(2.2	)		–
Proceeds on termination of debt foreign currency contracts		–			–			–			–			34.7			–
Settlement on purchase of debt securities		–			–			–			(9.2	)		(26.9	)		–
Deferred financing costs		–			(9.3	)		(2.4	)		(4.5	)		(0.9	)		(5.5	)
DIP financing costs		–			(3.8	)		–			–			–			–
Increase (decrease) in other long-term debt		–			(0.9	)		(0.9	)		(1.0	)		(1.0	)		3.6
Cash flows provided (used) by financing activities		(40.0	)		34.9			18.9			60.9			(22.6	)		132.2
Cash and cash equivalents, increase (decrease) in the year		5.9			(12.5	)		(70.3	)		12.3			78.1			5.0
Cash and cash equivalents, beginning of year		12.6			25.1			95.4			83.1			5.0			–
Cash and cash equivalents, end of year	$	18.5		$	12.6		$	25.1		$	95.4		$	83.1		$	5.0

XML

INCOME TAXES

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

21. INCOME TAXES

The components of earnings (loss) before income taxes consist of the following:

	Successor			Predecessor
	Three months ended			Nine months ended			Years ended
	December 31			September 30			December 31
	2012			2012			2011			2010
Canada	$	(31.6	)	$	651.2		$	(773.0	)	$	(400.0	)
United States		8.0			1.6			(16.7	)		(14.0	)
Other		–			–			0.2			15.5
Earnings (loss) from continuing operations	$	(23.6	)	$	652.8		$	(789.5	)	$	(398.5	)
Earnings (loss) from discontinued operations	$	(12.9	)	$	(3.6	)	$	(194.5	)	$	(16.0	)
Earnings (loss) before income taxes	$	(36.5	)	$	649.2		$	(984.0	)	$	(414.5	)

The income tax (recovery) expense consists of:

	Successor			Predecessor
	Three months ended			Nine months ended			Years ended
	December 31			September 30			December 31
	2012			2012			2011			2010
Canada:
Current	$	–		$	–		$	(0.1	)	$	0.2
Deferred		(1.0	)		(1.1	)		(6.6	)		(31.6	)
		(1.0	)		(1.1	)		(6.7	)		(31.4	)
United States:
Current		0.1			(0.4	)		0.2			(0.5	)
Deferred		1.1			0.4			(2.0	)		12.0
		1.2			–			(1.8	)		11.5
Other:
Current		–			–			0.1			0.1
Deferred		–			–			–			–
		–			–			0.1			0.1
Total from continuing operations
Current		0.1			(0.4	)		0.2			(0.2	)
Deferred		0.1			(0.7	)		(8.6	)		(19.6	)
	$	0.2		$	(1.1	)	$	(8.4	)	$	(19.8	)
Total from discontinued operations
Current		–			–			–			–
Deferred		–			–			1.0			3.5
	$	–		$	–		$	1.0		$	3.5

The reconciliation of income taxes calculated at the statutory rate to the actual income tax provision is as follows:

	Successor					Predecessor
	Three months ended					Nine months ended					Years ended
	December 31					September 30					December 31
	2012					2012					2011					2010
Income tax recovery at Canadian statutory income tax rates	$	(9.1	)	25.0	%	$	162.3		25.0	%	$	(260.8	)	26.5	%	$	(118.2	)	28.5	%
Increase (decrease) in income taxes for:
Non-taxable income and expenses		(1.8	)	5.0			7.4		1.1			2.0		(0.2	)		(3.2	)	0.8
Difference in foreign tax rate		(0.5	)	1.3			(1.0	)	(0.1	)		(25.4	)	2.5			(4.3	)	1.0
Release of deferred income taxes related to reduction in corporate income tax rates		–		–			–		–			11.3		(1.1	)		13.8		(3.3	)
Change in the deferred income tax estimate		–		–			–		–			(0.6	)	0.1			0.3		(0.1	)
Change in valuation allowance		11.9		(32.7	)		(164.9	)	(25.4	)		265.7		(27.0	)		98.3		(23.7	)
Adjustment to deferred credits		–		–			(9.6	)	(1.5	)		–		–			(5.9	)	1.4
Other		(0.3	)	0.9			4.7		0.7			0.4		(0.0	)		2.9		(0.7	)
Income tax expense (recovery)	$	0.2		(0.5	)%	$	(1.1	)	(0.2	)%	$	(7.4	)1	0.8	%	$	(16.3	)2	3.9	%

¹ Included $8.4 million income tax recovery related to continuing operations and $1.0 million income tax expense related to discontinued operations

² Included $19.8 million income tax recovery related to continuing operations and $3.5 million income tax expense related to discontinued operations

Deferred tax assets and liabilities

The tax effects of temporary differences that give rise to significant current deferred tax assets are as follows:

	Successor						Predecessor
	As at December 31			As at September 30			As at December 31
Current	2012			2012			2011
Deferred income tax assets
Non-capital losses and temporary differences related to working capital	$	1.8		$	3.1		$	15.6
Employee future benefits		3.3			3.4			3.3
Other		5.6			4.3			(1.9	)
		10.7			10.8			17.0
Valuation allowance		(10.7	)		(10.8	)		(3.9	)
	$	–		$	–		$	13.1
Classification:
Prepaids and other (note 13)	$	–		$	–		$	13.1
	$	–		$	–		$	13.1

The tax effects of temporary differences that give rise to significant non-current deferred tax assets (liabilities) are as follows:

	Successor						Predecessor
	As at December 31			As at September 30			As at December 31
Non-current	2012			2012			2011
Deferred income tax assets (liabilities)
Property, plant and equipment	$	126.3		$	119.7		$	215.5
Non-capital loss carry-forwards		14.9			12.9			69.1
Employee future benefits		77.3			76.9			77.0
Other		4.5			3.0			11.2
		223.0			212.5			372.8
Valuation allowance		(223.0	)		(212.5	)		(376.4	)
	$	–		$	–		$	(3.6	)

At December 31, 2012, the company has provided for a valuation allowance on its deferred tax assets of $233.7 million.

At December 31, 2012, the company had Canadian federal non-capital loss carry-forwards of $35.0 million, which expire during the period 2028 to 2032, and U.S. federal net operating loss carry-forwards of $16.4 million, which expire in 2032. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. As management believes that it is more likely than not that the resulting future operations will not generate sufficient taxable income to realize all of the net deferred tax assets in Canada and the U.S., during the year, and also due to the negative evidence from the company’s three year cumulative historical performance, management recorded a valuation allowance of $6.1 million in respect of its U.S. federal net operating losses and a valuation allowance of $8.8 million in respect of its Canadian operating losses.

Accounting for uncertainty in income taxes

At December 31, 2012 and September 30, 2012, the company had gross unrecognized tax benefits of $5.3 million (2011 – $5.3 million). If recognized, these tax benefits would favourably impact the company’s effective tax rate.

Below is a reconciliation of the total amounts of unrecognized tax benefits:

	Successor		Predecessor
	Three months ended		Nine months ended		Year ended
	December 31		September 30		December 31
	2012		2012		2011
Unrecognized tax benefits, beginning of period	$	5.3	$	5.3	$	5.9
Current period tax positions		–		–		0.4
Settlements and lapse of statute of limitations		–		–		(1.0	)
Unrecognized tax benefits, end of period	$	5.3	$	5.3	$	5.3

The company recognizes interest expense and penalties related to unrecognized tax benefits within the provision for income tax expense on the consolidated statement of earnings (loss). No interest expense or penalties related to unrecognized tax benefits were recorded during 2012. At December 31, 2012, there were no interest and penalties accrued in relation to uncertain tax positions in the consolidated balance sheet.

In the normal course of business, the company and its subsidiaries are subject to audits by the Canadian federal and provincial taxing authorities, by the U.S. federal and various state taxing authorities and by the taxing authorities in various foreign jurisdictions. All tax years up to and including December 31, 2005 have been audited by the Canadian federal taxing authorities. The company’s income taxes are not currently under audit by the Canadian federal taxing authorities, by the U.S. Internal Revenue Service, by any U.S. state taxing authority or by any foreign taxing authority. The U.S. federal statute of limitations for pre-2009 tax years expired on September 15, 2012. 

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OTHER LONG-TERM OBLIGATIONS

12 Months Ended

Dec. 31, 2012

Other Liabilities Noncurrent Disclosure [Abstract]

Other Liabilities Noncurrent Disclosure [Text Block]

20. OTHER LONG-TERM OBLIGATIONS

The components of other long-term obligations are as follows:

	Successor				Predecessor
	As at December 31		As at September 30		As at December 31
	2012		2012		2011
Restructuring (note 24)	$	–	$	–	$	0.1
Environmental and remedial		5.8		5.9		8.0
Lease obligation – paper recycling – long term		–		–		7.8
Other		3.1		3.1		3.3
	$	8.9	$	9.0	$	19.2

Asset retirement obligations

The following table provides a reconciliation of the company’s asset retirement obligations.

	Successor			Predecessor
	Three months ended			Nine months ended			Year ended
	December 31			September 30			December 31
	2012			2012			2011
Balance, beginning of period	$	6.2		$	8.5		$	7.9
Liabilities settled		(0.1	)		–			(0.7	)
Liabilities derecognized		–			(2.3	)		–
Accretion expense		–			–			0.1
Revised estimates of future cash flows		–			–			1.2
Balance, end of period	$	6.1		$	6.2		$	8.5

The balance sheet classification for asset retirement obligations is as follows:

	Successor				Predecessor
	As at December 31		As at September 30		As at December 31
	2012		2012		2011
Other long-term obligations	$	5.8	$	5.9	$	8.0
Accounts payable and accrued liabilities		0.3		0.3		0.5
	$	6.1	$	6.2	$	8.5

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PROPERTY,PLANT AND EQUIPMENT (Details) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2012 Land and Building [Member] Specialty Printing Papers and Newsprint [Member]	Sep. 30, 2012 Land and Building [Member] Specialty Printing Papers and Newsprint [Member]	Dec. 31, 2012 Land and Building [Member] Pulp [Member]	Sep. 30, 2012 Land and Building [Member] Pulp [Member]	Dec. 31, 2012 Machinery and Equipment [Member] Specialty Printing Papers and Newsprint [Member]	Sep. 30, 2012 Machinery and Equipment [Member] Specialty Printing Papers and Newsprint [Member]	Dec. 31, 2012 Machinery and Equipment [Member] Pulp [Member]	Sep. 30, 2012 Machinery and Equipment [Member] Pulp [Member]	Dec. 31, 2011 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]	Dec. 31, 2008 Predecessor [Member]	Dec. 31, 2011 Predecessor [Member] Land and Building [Member] Specialty Printing Papers and Newsprint [Member]	Dec. 31, 2011 Predecessor [Member] Land and Building [Member] Pulp [Member]	Dec. 31, 2011 Predecessor [Member] Machinery and Equipment [Member] Specialty Printing Papers and Newsprint [Member]	Dec. 31, 2011 Predecessor [Member] Machinery and Equipment [Member] Pulp [Member]
Cost	624.5	614.1	224.5	221.7	9.8	9.6	384.9	379.5	5.3	3.3	4,214.8				574.6	98.8	2,756.2	785.2
Accumulated depreciation, amortization and impairment	12.9	0	2.7	0	0.1	0	9.9	0	0.2	0	3,828.5				396.0	96.3	2,568.7	767.5
Net book value	611.60	614.10	221.80	221.70	9.70	9.60	375.00	379.50	5.10	3.30	386.30	1,285.60	1,664.70	1,854.40	178.60	2.50	187.50	17.70

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LONG-TERM DEBT (Tables)

12 Months Ended

Dec. 31, 2012

Debt Disclosure [Abstract]

Schedule of Debt [Table Text Block]

The company’s long-term debt at December 31 is listed below.

	Successor						Predecessor
	As at December 31			As at September 30			As at December 31
Recourse	2012			2012			2011
Floating rate senior secured notes, due September 2016 (US$35.0 million)	$	33.9		$	33.4		$	–
Senior secured notes, 11.0% due October 2017 (US$250.0 million)		248.7			245.9			–
Senior notes, 7.375% due March 2014 (US$250.0 million)		–			–			256.4
Senior secured notes, 11.0% due December 2016 (US$280.4 million)		–			–			285.2
Modification – difference in carrying value of 8.625% and 11.0% senior secured notes (US$38.3 million) on exchange		–			–			31.2
Class B senior secured notes, 11.0% due December 2016 (US$110.0 million)		–			–			98.5
		282.6			279.3			671.3
Revolving asset-based loan facility of up to $175.0 million due July 2017		24.0			64.0			–
Revolving asset-based loan facility of up to $175.0 million due May 2016		–			–			48.0
Capital lease obligations		8.2			8.5			9.2
		314.8			351.8			728.5
Non-recourse (note 8)
First mortgage bonds, 6.447% due July 2016		95.0			95.0			95.0
Subordinated promissory notes		18.8			18.8			18.8
		113.8			113.8			113.8
Total debt		428.6			465.6			842.3
Less:  current portion		(6.6	)		(6.7	)		(466.8	)
Total long-term debt	$	422.0		$	458.9		$	375.5

Schedule of Maturities of Long-term Debt [Table Text Block]

Scheduled total debt repayments

	Recourse debt		Non-recourse debt (PREI)
2013	$	6.6	$	–
2014		1.6		–
2015		–		–
2016		34.8		95.0
2017		272.7		–
Thereafter		–		18.8
	$	315.7	$	113.8

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block]

The company’s long-term debt is recorded at amortized cost. The following table provides information about management’s best estimate of the fair value of the company’s debt:

	Successor								Predecessor
	December 31, 2012				September 30, 2012				December 31, 2011
	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Recourse	$	314.8	$	262.5	$	351.8	$	351.8	$	728.5	$	279.5
Non-recourse		113.8		113.8		113.8		113.8		113.8		124.7

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2012

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Consolidation, Policy [Policy Text Block]

(a) Basis of consolidation

The consolidated financial statements include the accounts of the company and, from their respective dates of acquisition of control or formation, its wholly-owned subsidiaries and partnerships. In addition, the consolidated financial statements include the accounts of the company’s joint venture, Powell River Energy Inc. (PREI), a variable interest entity. All inter-company transactions and amounts have been eliminated on consolidation.

Consolidation, Variable Interest Entity, Policy [Policy Text Block]

(b) Variable interest entities

Variable interest entities (VIE) are entities in which equity investors do not have a controlling financial interest or the equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by other parties. The company consolidates the accounts of VIEs where it has been determined that the company is the primary beneficiary, defined as the party that has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and has an obligation to absorb losses and receive benefits of that VIE.

Use of Estimates, Policy [Policy Text Block]

(c) Use of estimates

The consolidated financial statements have been prepared in conformity with U.S. GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. On an ongoing basis, management reviews its estimates, including those related to inventory obsolescence, estimated useful lives of assets, environmental and legal liabilities, impairment of long-lived assets, derivative financial instruments, pension and post-retirement benefits, bad debt and doubtful accounts, income taxes, restructuring costs, and commitment and contingencies, based on currently available information.

The enterprise value that was established as of the valuation date of September 30, 2012 incorporated numerous major assumptions including, but not limited to, the following:

§ management’s best estimate of future operating performance as of the valuation date,

§ internal forecasts and external forecasts based on published reports of future exchange rates and product prices,

§ a discount rate of 15% based on the estimated blended rate of return required by debt and equity investors of the company,

§ the corporate income tax rate of approximately 25% represents an appropriate rate to apply to future earnings of the company, based on current and projected federal and provincial tax rates,

§ a capital cost allowance (CCA) rate of 20% represents an appropriate depreciation rate to apply to capital assets in future periods,

Actual amounts could differ from estimates.

Revenue Recognition, Policy [Policy Text Block]

(d) Revenue recognition

The company recognizes revenues upon shipment when persuasive evidence of an arrangement exists, prices are fixed or determinable, title of ownership has transferred to the customer and collection is reasonably assured. Sales are reported net of discounts, allowances and rebates.

Shipping and Handling Cost, Policy [Policy Text Block]

(e) Shipping and handling costs

The company classifies shipping and handling costs to Cost of sales, excluding depreciation and amortization as incurred.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

(f) Translation of foreign currencies

The majority of the company’s sales are denominated in foreign currencies, principally U.S. dollars (US$). Revenue and expense items denominated in foreign currencies are translated at exchange rates prevailing during the period. Monetary assets and liabilities denominated in foreign currencies are translated at the period-end exchange rates. Non-monetary assets and liabilities are translated at exchange rates in effect when the assets are acquired or the obligations are incurred. Foreign exchange gains and losses are reflected in net earnings (loss) for the period.

Up to September 30, 2012, the company had a foreign subsidiary that was considered to be self-contained and integrated within its foreign jurisdiction, and accordingly, used the U.S. dollar as its functional currency. Foreign exchange gains and losses arising from the translation of the foreign subsidiary’s accounts into Canadian dollars (CDN$) were reported as a component of other comprehensive income (loss), as discussed in note 23, Accumulated other comprehensive income (loss). Subsequent to the permanent closure of the Snowflake recycle mill operations on September 30, 2012, the company ceased to have a self-contained foreign operation and therefore no longer reports foreign exchange gains and losses as a component of other comprehensive income (loss).

Derivatives, Policy [Policy Text Block]

(g) Derivative financial instruments

The company uses derivative financial instruments in the management of foreign currency and price risk associated with its revenues, energy costs and long-term debt. It also uses interest rate swaps to manage its net exposure to interest rate changes.  The company’s policy is to use derivatives for managing existing financial exposures and not for trading or speculative purposes. The company accounts for its derivatives at fair value at each balance sheet date.

In a cash flow hedge, the changes in fair value of derivative financial instruments are recorded in Other comprehensive loss. These amounts are reclassified in the consolidated statement of earnings (loss) in the periods in which results are affected by the cash flows of the hedged item. Any hedge ineffectiveness is recorded in the consolidated statement of earnings (loss) when incurred. In a fair value hedge, hedging instruments are carried at fair value, with changes in fair value recognized in the consolidated statement of earnings (loss).  The changes in fair value of the hedged item attributable to the hedged risk is also recorded in the consolidated statement of earnings (loss) by way of a corresponding adjustment of the carrying amount of the hedged items recognized on the balance sheet. In hedges of the foreign currency exposure of net investments in foreign subsidiaries that are self-contained and integrated within a particular country, gains and losses on translation are deferred in a separate component of shareholders’ equity to be recognized in net earnings (loss) upon sale or upon complete or substantially complete liquidation of the net investment in the foreign subsidiary. Cash flows from derivative financial instruments are classified, in general, to “Operations” on the consolidated statement of cash flows consistent with the hedged transaction.  Cash flows resulting from termination of interest rate swaps are classified as “Investing activities.”

Effective April 1, 2010, the company no longer designates its U.S. dollar revenue risk management instruments as cash flow hedges for accounting purposes. The effective portion of gains or losses accumulated as at March 31, 2010 on its previously designated U.S. dollar revenue risk management instruments were recorded in the same income statement line items as the hedged item in Sales. Prior to April 1, 2010, the company designated the hedge relationship and formally documented, at its inception, the particular risk management objective and strategy, the specific asset, liability or cash flow being hedged, as well as how effectiveness was assessed.  Risk management strategies and relationships were assessed on an ongoing basis to ensure each derivative instrument was effective in accomplishing the objective of offsetting either changes in the fair value or cash flow attributable to the exposure being hedged both at inception and over the term of the hedging relationship.

Effective October 1, 2011, the company no longer designates the foreign currency revaluation of a portion of its long-term debt as a hedge against the foreign currency exposure arising on the net investment in its foreign subsidiary. As described in note 7, Measurement uncertainty – impairment of long-lived assets, certain assets of the foreign subsidiary were impaired on September 30, 2011. Subsequent to the recognition of this impairment, the revaluation of the company’s foreign currency denominated debt was no longer an effective hedge against the foreign exchange gains and losses that arose on the net investment in the company’s foreign subsidiary. Subsequent to the permanent closure of the Snowflake recycle mill operations on September 30, 2012 the company ceased to have a self-contained foreign operation.

Cash and Cash Equivalents, Policy [Policy Text Block]

(h) Cash and cash equivalents

Cash and cash equivalents include cash and short-term investments with original maturities of less than three months when acquired and are presented at fair value.

Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]

(i) Restricted cash

Restricted cash is segregated and presented separately in the balance sheet, classified as current or non-current based on the facts pertaining to the restricted cash, and is excluded from cash and cash equivalents in the statement of cash flows.

Inventory, Policy [Policy Text Block]

(j) Inventories

Specialty printing papers, newsprint and pulp inventories are valued at the lower of three-month moving average cost or market. Wood chips, pulp logs and other raw materials are valued at the lower of cost or market. For raw materials to be used in the production of finished goods, market is determined on an as-converted-to-finished-goods basis. Work-in-progress and operating and maintenance supplies and spare parts inventories are valued at cost. Cost is defined as all costs that relate to bringing the inventory to its present condition and location under normal operating conditions and includes manufacturing costs, such as raw materials, labour and production overhead, and depreciation and amortization costs. In addition, cost includes freight costs to move inventory offsite.

Repairs and Maintenance Costs [Policy Text Block]

(k) Repairs and maintenance costs

Repairs and maintenance, including costs associated with planned major maintenance, are charged to Cost of sales, excluding depreciation and amortization as incurred.

Property, Plant and Equipment, Policy [Policy Text Block]

(l) Property, plant and equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and amortization, including asset impairment charges. Interest costs for capital projects are capitalized. Buildings, machinery and equipment are generally amortized on a straight-line basis at rates that reflect estimates of the economic lives of the assets. The rates for major classes of assets based on the estimated remaining economic lives are:

Buildings	2.5% − 5.0%
Paper machinery and equipment	5.0% – 10.0%
Pulp machinery and equipment	5.0% – 10.0%

Effective December 31, 2011, the remaining useful lives of the company’s pulp machinery were revised from approximately 7 years to 11 years. The company concluded that, based on the physical condition of these assets, 11 years more fairly reflected the remaining useful lives of these assets and adopted these change in estimate prospectively.

No depreciation is charged on capital projects during the period of construction. Start-up costs incurred in achieving normal operating capacity on major capital projects are expensed as incurred.

Leasehold improvements are normally amortized over the lesser of their expected average service life and the term of the lease.

When property, plant and equipment are sold by the company, the historical cost less accumulated depreciation and amortization is netted against the sale proceeds and the difference is included in Other income (expense), net.

Assets Held For Sale and Discontinued Operations [Policy Text Block]

(m) Assets Held For Sale and Discontinued Operations

Assets and liabilities that meet the held-for-sale criteria are reported separately from continuing operations in the consolidated balance sheet. Assets held for sale and liabilities associated with assets held for sale are reported separately under current assets and current liabilities, and are not offset and reported as a single amount in the consolidated balance sheet. Assets and liabilities are classified prospectively in the consolidated balance sheet as held for sale. 

The results of discontinued operations, net of tax, are presented separately from the results of continuing operations in the consolidated statements of earnings (loss). Per share information and changes to other comprehensive income (loss) related to discontinued operations are presented separately from continuing operations. Cash flows from discontinued operations are not presented separately from cash flows from continuing operations in the consolidated statements of cash flows. All comparative periods are restated in the period that a component is classified as a discontinued operation.

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

(n) Goodwill

Goodwill is measured at the amount that the company’s enterprise value exceeded the fair value of its identified assets and liabilities on the convenience date of September 30, 2012, that fresh start accounting was applied.

Government Grants, Policy [Policy Text Block]

(o) Government grants

Government grants are recognized at fair value when there is reasonable assurance that the company will comply with the conditions attached to them and that the grants will be received. Government grants related to additions or betterments to property, plant and equipment are recognized as credits against the carrying values of the related assets, and subsequently recognized in net earnings (loss) over the useful lives of the related assets as reductions to the resulting depreciation expense.

Government grants were awarded to the company by the Canadian Forest Service (CFS) to invest in specified capital upgrades to property, plant and equipment. These government grants, called Green Transformation Credits, were awarded in accordance with CFS’s Pulp and Paper Green Transformation Program.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

(p) Impairment of long-lived assets

Long-lived assets are tested for recoverability when events or changes in circumstances indicate their carrying value may not be recoverable. A long-lived asset is potentially not recoverable when its carrying value is greater than the sum of the undiscounted cash flows expected to result from its use and eventual disposition. The impairment loss, if any, is measured as the amount by which the long-lived asset’s carrying amount exceeds its fair value.

Goodwill will not be amortized in subsequent periods, but will be tested for impairment using a two-step impairment test at the reporting unit level. The first step of the goodwill impairment test, used to identify potential impairment, compares the fair value of a reporting unit with its carrying amount, including goodwill. The second step of the goodwill impairment test, used to measure the amount of impairment loss, compares the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. A company may first assess certain prescribed qualitative factors to determine whether it is necessary to perform the two-step goodwill impairment test.

Environmental Costs, Policy [Policy Text Block]

(q) Environmental costs

Environmental expenditures are expensed or capitalized depending upon their future economic benefit. Expenditures that prevent future environmental contamination are capitalized as part of Property, plant and equipment, and depreciation and amortization is subsequently charged to earnings over the estimated future benefit period of the assets. Expenditures that relate to an existing condition caused by past operations are expensed. Liabilities are recorded on a discounted basis when rehabilitation efforts are likely to occur and the costs can be reasonably estimated.

Asset Retirement Obligations, Policy [Policy Text Block]

(r) Asset retirement obligations

Asset retirement obligations are recognized at fair value in the period in which the company incurs a legal obligation associated with the retirement of an asset. The associated costs are capitalized as part of the carrying value of the related asset and amortized over its remaining useful life. The liability is accreted using a credit-adjusted risk-free interest rate.

The company’s obligations for the proper removal and disposal of asbestos products in its mills meet the definition of a conditional asset retirement obligation. That is, the company is subject to regulations that are in place to ensure that asbestos fibres do not become friable, or loose. The regulations require that friable asbestos be repaired or removed in accordance with the regulations.

The company’s asbestos can generally be found on steam and condensate piping systems throughout its facilities, as well as in transite cladding on buildings and in building insulation. As a result of the longevity of the company’s mills, due in part to the company’s maintenance procedures, and the fact that the company does not have plans for major changes that would require the removal of asbestos, the timing of the removal of asbestos in the company’s mills is indeterminate. As a result, the company is currently unable to estimate the fair value of its asbestos removal and disposal obligation.

The company’s obligations to cover (cap) the surface areas of the landfills that are in operation at its mill sites meet the definition of an asset retirement obligation. Capping will prevent future environmental contamination when the landfills are no longer in active use. The company presently has active landfills at its Crofton, Powell River and Elk Falls mill sites.

Deferred Charges, Policy [Policy Text Block]

(s) Deferred financing costs

Deferred costs related to the company’s long-term debt are included in Other assets and amortized over the legal life of the related liability. Financing costs associated with modifications of long-term debt are expensed as incurred. Financing costs associated with modifications to line-of-credit or revolving debt arrangements are deferred and amortized if the borrowing capacity of the new arrangement is greater than or equal to the borrowing capacity of the old arrangement and if the parties to the new arrangement are the same as the parties to the old arrangement. Borrowing capacity is defined as the product of the remaining term of the arrangement and the maximum available credit.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

(t) Stock-based compensation and other stock-based payments

Stock options and restricted share units granted to the company’s key officers, directors and employees are accounted for using the fair value-based method. Under this method, compensation cost is measured at fair value at the date of grant, and is expensed over the award’s vesting period. Any consideration paid by plan participants on the exercise of share options or the purchase of shares is credited to Common stock together with any related stock-based compensation expense. Performance and time based share-based payments are amortized over their vesting periods when it is probable that the performance conditions will be satisfied.

Deferred share units are accounted for using the quoted market value at each reporting period until settlement, and are amortized over their vesting periods.

Income Tax, Policy [Policy Text Block]

(u) Income taxes

Income taxes are accounted for using the asset and liability method. Deferred income tax assets and liabilities are based on temporary differences (differences between the accounting basis and the tax basis of the assets and liabilities) and non-capital loss carry-forwards and are measured using the enacted tax rates and laws expected to apply when these differences reverse. Future tax benefits, including non-capital loss carry-forwards, are recognized to the extent that realization of such benefits is considered more likely than not. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that enactment occurs.

Deferred Credits [Policy Text Block]

(v) Deferred credits

Deferred credits represent the excess of amounts assigned to deferred income tax assets for tax losses acquired in other than business combinations over the consideration paid. Deferred credits are amortized to Income tax recovery in the consolidated statement of earnings (loss) during the period that the acquired tax asset is utilized.

Employee Future Benefits [Policy Text Block]

(w) Employee future benefits

The company maintains pension benefit plans for all salaried employees, which include defined benefit and defined contribution segments. The company also sponsors other post-retirement benefit plans, covering health and dental benefits. The company recognizes assets or liabilities for the respective overfunded or underfunded statuses of its defined benefit pension plans and other post-retirement benefit plans on its consolidated balance sheet. Changes in the funding statuses that have not been recognized in the company’s net periodic benefit costs are reflected in Accumulated other comprehensive income (loss) in the company’s consolidated balance sheet. Net periodic benefit costs are recognized as employees render the services necessary to earn the pension and other post-retirement benefits.

The estimated cost for pensions and other employee future benefits provided to employees by the company is accrued using actuarial techniques and assumptions during the employees’ active years of service. The net periodic benefit cost includes:

- the cost of benefits provided in exchange for employees’ services rendered during the year;

- the interest cost of benefit obligations;

- the expected long-term return on plan assets based on the fair value for all asset classes;

- gains or losses on settlements or curtailments;

- the straight-line amortization of prior service costs and plan amendments included in accumulated other comprehensive income (AOCI) over the expected average remaining service lifetime (EARSL) of employees who are active as of the date such costs are first recognized, unless all, or almost all, of the employees are no longer active, in which case such costs are amortized over the average remaining life expectancy of the former employees; and

- the straight-line amortization of cumulative unrecognized net actuarial gains and losses in excess of 10% of the greater of the accrued benefit obligation and the fair value of plan assets at the beginning of the year over the EARSL of the active employees who are active as of the date such amounts are recognized, unless all, or almost all, of the employees are no longer active, in which case such costs are amortized over the average life expectancy of the former employees.

The defined benefit plan obligations are determined in accordance with the projected benefit method, prorated on services.

Amounts paid to the company’s defined contribution plans for salaried employees and to multi-employer industry-wide pension plans are expensed as incurred.

Earnings Per Share, Policy [Policy Text Block]

(x) Earnings (loss) per share

Basic earnings (loss) per share is computed by dividing net earnings (loss) attributable to the company for the period by the weighted average number of company common shares outstanding during the reporting period. Diluted earnings (loss) per share is computed using the treasury stock method. When the effect of options and other securities convertible into common shares is anti-dilutive, including when the company has incurred a loss for the period, basic and diluted loss per share are the same.

Comparative Figures [Policy Text Block]

(y) Comparative figures

Comparative figures disclosed in the consolidated financial statements have been reclassified to conform to the presentation adopted for the current year.

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DEFERRED CREDITS

12 Months Ended

Dec. 31, 2012

Deferred Revenue and Credits [Abstract]

Deferred Revenue and Credits Disclosure [Text Block]

22. DEFERRED CREDITS

Reconciliation of deferred credits was as follows:

	Successor		Predecessor
	Three months ended		Nine months ended			Year ended
	December 31		September 30			December 31
	2012		2012			2011
Balance, beginning of period	$	–	$	9.6		$	9.6
Adjustment related to fresh start accounting		–		(9.6	)		–
Balance, end of period	$	–	$	–		$	9.6

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ACCUMULATED OTHER COMPREHENSIVE LOSS

12 Months Ended

Dec. 31, 2012

Accumulated Other Comprehensive Income (Loss), Net Of Tax [Abstract]

Accumulated Other Comprehensive Income Loss Note [Text Block]

23. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table contains information about the company’s AOCI, net of taxes:

	Successor				Predecessor
	As at December 31		As at September 30		As at December 31
	2012		2012		2011
Unrecognized pension and other post-retirement benefit costs	$	6.6	$	–	$	(89.6	)
Foreign currency translation adjustments, net of related hedging activities 1		–		–		0.7
Unrecognized loss on interest rate hedges		–		–		(0.5	)
	$	6.6	$	–	$	(89.4	)

1 The accumulated net adjustment is comprised of non-taxable translation gain of $nil million (2011 – $2.3 million gain) and a net revaluation of long-term debt designated as a net investment hedge of $nil million loss (2011 – $1.6 million loss), net of tax of $nil million (2011 – $nil million). Effective October 1, 2011, the company no longer designates the net revaluation of long-term debt as a net investment hedge.

XML

CONSOLIDATED BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2012

Consolidated Business Segments [Member]

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

CATALYST PAPER CORPORATION

CONSOLIDATED BUSINESS SEGMENTS

(In millions of Canadian dollars)

	Three months ended December 31, 2012 (successor)
	Specialty printing papers		Newsprint		Pulp			Corporate adjustments			Consolidated
Sales to external customers	$	171.8	$	44.0	$	44.7		$	–		$	260.5
Inter-segment sales		–		–		7.1			(7.1	)		–
Depreciation and amortization		11.2		1.4		0.3						12.9
Operating earnings (loss)		1.2		2.4		(9.3	)		–			(5.7	)
Total assets		710.5		182.6		85.5			0.2			978.8
Additions to property, plant and equipment		6.5		1.8		2.1			–			10.4

	Nine months ended September 30, 2012 (predecessor)
	Specialty printing papers		Newsprint		Pulp			Corporate adjustments			Consolidated
Sales to external customers	$	503.8	$	134.1	$	159.8		$	–		$	797.7
Inter-segment sales		–		–		22.5			(22.5	)		–
Depreciation and amortization		18.9		2.7		1.8			–			23.4
Restructuring (note 24)		2.9		0.8		1.6			–			5.3
Operating earnings (loss)		19.3		11.7		(6.2	)		–			24.8
Total assets		761.1		193.4		85.4			0.2			1,040.1
Additions to property, plant and equipment		9.2		1.2		1.8			–			12.2

	Year ended December 31, 2011 (predecessor)
	Specialty printing papers			Newsprint			Pulp			Corporate adjustments			Consolidated
Sales to external customers	$	690.4		$	141.3		$	248.0		$	–		$	1,079.7
Inter-segment sales		–			–			39.3			(39.3	)		–
Depreciation and amortization		81.3			9.1			15.1			–			105.5
Restructuring (note 24)		4.0			0.8			1.1			–			5.9
Impairment and other closure costs (note 7)		507.2			71.1			83.5			–			661.8
Operating loss		(565.1	)		(69.2	)		(70.2	)		–			(704.5	)
Total assets		432.0			216.5			75.8			13.3			737.6
Additions to property, plant and equipment		9.2			6.1			4.4			–			19.7

	Year ended December 31, 2010 (predecessor)
	Specialty printing papers			Newsprint			Pulp		Corporate adjustments			Consolidated
Sales to external customers	$	674.0		$	152.4		$	225.0	$	–		$	1,051.4
Inter-segment sales		–			–			23.4		(23.4	)		–
Depreciation and amortization		78.8			16.6			14.3		–			109.7
Restructuring (note 24)		8.2			16.1			1.0		–			25.3
Impairment and other closure costs (note 7)		104.4			190.1			–		–			294.5
Operating earnings (loss)		(149.7	)		(224.3	)		22.4		–			(351.6	)
Total assets		1,046.0			450.6			185.1		14.5			1,696.2
Additions to property, plant and equipment		9.1			1.8			0.3		–			11.2

The accompanying notes are an integral part of the consolidated financial statements.

Consolidated Geographic Business Segments [Member]

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

CATALYST PAPER CORPORATION

CONSOLIDATED GEOGRAPHIC BUSINESS SEGMENTS

(In millions of Canadian dollars)

	Three months ended December 31, 2012 (successor)
Sales by shipment destination:		Specialty printing papers		Newsprint		Pulp		Total
Canada		$	25.4	$	12.9	$	–	$	38.3
United States			122.6		9.1		–		131.7
Asia and Australasia			14.3		11.4		43.7		69.4
Latin America			9.5		10.6				20.1
Europe and other			–		–		1.0		1.0
		$	171.8	$	44.0	$	44.7	$	260.5

	Nine months ended September 30, 2012 (predecessor)
Sales by shipment destination:		Specialty printing papers		Newsprint		Pulp		Total
Canada		$	78.4	$	31.1	$	–	$	109.5
United States			356.6		27.5		–		384.1
Asia and Australasia			38.2		38.1		158.2		234.5
Latin America			30.2		37.4		–		67.6
Europe and other			0.4		–		1.6		2.0
		$	503.8	$	134.1	$	159.8	$	797.7

	Year ended December 31, 2011 (predecessor)
Sales by shipment destination:		Specialty printing papers		Newsprint		Pulp		Total
Canada		$	120.2	$	36.4	$	4.6	$	161.2
United States			484.7		26.9		–		511.6
Asia and Australasia			38.7		34.8		243.3		316.8
Latin America			45.1		43.2		–		88.3
Europe and other			1.7		–		0.1		1.8
		$	690.4	$	141.3	$	248.0	$	1,079.7

	Year ended December 31, 2010 (predecessor)
Sales by shipment destination:		Specialty printing papers		Newsprint		Pulp		Total
Canada		$	103.0	$	35.1	$	0.2	$	138.3
United States			489.4		31.3		0.9		521.6
Asia and Australasia			30.6		34.9		222.1		287.6
Latin America			48.2		51.1		–		99.3
Europe and other			2.8		–		1.8		4.6
		$	674.0	$	152.4	$	225.0	$	1,051.4

	Successor				Predecessor
	As at December 31		As at September 30		As at December 31
	2012		2012		2011
Property, plant and equipment by geographic location:
Canada	$	611.6	$	614.1	$	377.7
United States		–		–		8.6
	$	611.6	$	614.1	$	386.3

The accompanying notes are an integral part of the consolidated financial statements.

XML

RESTRUCTURING

12 Months Ended

Dec. 31, 2012

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

24. RESTRUCTURING

The following table provides the activity in the restructuring liability:

	Successor			Predecessor
	Three months ended			Nine months ended			Year ended
	December 31			September 30			December 31
	2012			2012			2011
Balance, beginning of period	$	0.4		$	1.3		$	3.3
Expensed in period		1.1			5.3			5.9
Disbursements		(0.6	)		(6.2	)		(7.9	)
Balance, end of period	$	0.9		$	0.4		$	1.3
Classification:
Accounts payable and accrued liabilities (note 17)	$	0.3		$	0.4		$	1.2
Liabilities associated with assets held for sale		0.6
Other long-term obligations (note 20)		–			–			0.1
	$	0.9		$	0.4		$	1.3

The following table provides restructuring liability by year of initiatives:

	Successor				Predecessor
	As at December 31		As at September 30		As at December 31
	2012		2012		2011
2009 and prior initiatives	$	0.2	$	0.2	$	0.2
2010 initiatives		–		–		0.1
2011 initiatives		–		–		1.0
2012 initiatives		0.7		0.2		–
	$	0.9	$	0.4	$	1.3

2012

During the three months ended December 31, 2012, the company recorded restructuring costs of $1.1 million related to legal and consulting fees incurred in respect of the sale of the Snowflake facility subsequent to its permanent closure on September 30, 2012. This amount was included in Loss from discontinued operations net of tax in the consolidated statement of earnings (loss) for the three months ended December 31, 2012. The company incurred $5.3 million in restructuring costs for the nine months ended September 30, 2012 consisting of legal and consulting fees related to the restructuring negotiations prior to entering into the CCAA proceedings.

2011

During the year ended December 31, 2011 the company recorded restructuring costs of $5.9 million related to debt restructuring negotiations with its bondholders. The costs consisted of legal and consulting fees incurred in respect of these negotiations. The debt restructuring initiative did not result in a restructuring transaction, and on January 31, 2012 the company entered into creditor protection.

2010

During the year ended December 31, 2010 the company recorded restructuring costs of $25.3 million primarily related to severances payable to eligible employees at Elk Falls resulting from extended curtailment and permanent closure.

XML

CREDITOR PROTECTION PROCEEDINGS RELATED DISCLOSURES (Details 6) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012
Adjusted for:
Non-controlling deficit	6.3	7.9
Reorganization value to be allocated to assets	978.8	1,040.1
Less amounts allocated to the value of:
Total current assets	299.5	357.4
Property, plant and equipment	611.60	614.10
Other assets	11.00	11.90
Reorganization value not allocated (goodwill)	56.70	56.70
Fresh Start Accounting Adjustments [Member]
Enterprise value of the Successor company, including net redundant assets and other adjustments	392.9	496.7
Adjusted for:
Non-controlling deficit		41.2
Non-interest bearing liabilities		535.5
Reorganization value to be allocated to assets		316.5
Less amounts allocated to the value of:
Total current assets		4.9
Property, plant and equipment		257.47
Other assets		0
Reorganization value not allocated (goodwill)		56.77

XML

EMPLOYEE FUTURE BENEFITS (Details 6)	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2012 Equity Securities [Member]	Sep. 30, 2012 Equity Securities [Member]	Dec. 31, 2012 Fixed Income Securities [Member]	Sep. 30, 2012 Fixed Income Securities [Member]	Dec. 31, 2012 Real Estate [Member]	Sep. 30, 2012 Real Estate [Member]	Dec. 31, 2011 Predecessor [Member]	Dec. 31, 2011 Predecessor [Member] Equity Securities [Member]	Dec. 31, 2011 Predecessor [Member] Fixed Income Securities [Member]	Dec. 31, 2011 Predecessor [Member] Real Estate [Member]
Defined Benefit Plan, Actual Plan Asset Allocations	100.00%	100.00%	56.20%	57.30%	38.60%	37.60%	5.20%	5.10%	100.00%	58.50%	41.50%	0.00%

XML

COMMITMENTS

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments Disclosure [Text Block]

32. COMMITMENTS

The company has entered into operating leases for property, plant and equipment. The minimum future payments under various operating leases in each of the years ended December 31 are listed below.

2013	$	6.0
2014		4.3
2015		1.7
2016		1.7
2017		1.6
Subsequent years		0.7
	$	16.0

Total lease expense amounted to $1.8 million for the three months ended December 31, 2012 and $6.6 million for the nine months ended September 30, 2012 (2011 – $10.1 million; 2010 – $10.4 million).

XML

PROPERTY, PLANT AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

The components of property, plant and equipment are as follows:

	As at December 31, 2012 (successor)
	Cost		Accumulated depreciation, amortization and impairment		Net book value
Buildings and land
Specialty printing papers and newsprint	$	224.5	$	2.7	$	221.8
Pulp		9.8		0.1		9.7
Machinery and equipment
Specialty printing papers and newsprint		384.9		9.9		375.0
Pulp		5.3		0.2		5.1
	$	624.5	$	12.9	$	611.6

	As at September 30, 2012 (successor)
	Cost		Accumulated depreciation, amortization and impairment		Net book value
Buildings and land
Specialty printing papers and newsprint	$	221.7	$	–	$	221.7
Pulp		9.6		–		9.6
Machinery and equipment
Specialty printing papers and newsprint		379.5		–		379.5
Pulp		3.3		–		3.3
	$	614.1	$	–	$	614.1

	As at December 31, 2011 (predecessor)
	Cost		Accumulated depreciation, amortization and impairment		Net book value
Buildings and land
Specialty printing papers and newsprint	$	574.6	$	396.0	$	178.6
Pulp		98.8		96.3		2.5
Machinery and equipment
Specialty printing papers and newsprint		2,756.2		2,568.7		187.5
Pulp		785.2		767.5		17.7
	$	4,214.8	$	3,828.5	$	386.3

XML

CONSOLIDATED GEOGRAPHIC BUSINESS SEGMENTS (Details) (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Sales by shipment destination:
Sales	260.50
Property, plant and equipment by geographic location:
Property, plant and equipment	611.60	614.10
Canada [Member]
Sales by shipment destination:
Sales	38.30
Property, plant and equipment by geographic location:
Property, plant and equipment	611.60	614.10
United States [Member]
Sales by shipment destination:
Sales	131.70
Property, plant and equipment by geographic location:
Property, plant and equipment	0	0	8.60
Asia and Australasia [Member]
Sales by shipment destination:
Sales	69.40
Latin America [Member]
Sales by shipment destination:
Sales	20.10
Europe and Other [Member]
Sales by shipment destination:
Sales	1.00
Specialty Printing Papers [Member]
Sales by shipment destination:
Sales	171.80
Specialty Printing Papers [Member] | Canada [Member]
Sales by shipment destination:
Sales	25.40
Specialty Printing Papers [Member] | United States [Member]
Sales by shipment destination:
Sales	122.60
Specialty Printing Papers [Member] | Asia and Australasia [Member]
Sales by shipment destination:
Sales	14.30
Specialty Printing Papers [Member] | Latin America [Member]
Sales by shipment destination:
Sales	9.50
Specialty Printing Papers [Member] | Europe and Other [Member]
Sales by shipment destination:
Sales	0
Newsprint [Member]
Sales by shipment destination:
Sales	44.00
Newsprint [Member] | Canada [Member]
Sales by shipment destination:
Sales	12.90
Newsprint [Member] | United States [Member]
Sales by shipment destination:
Sales	9.10
Newsprint [Member] | Asia and Australasia [Member]
Sales by shipment destination:
Sales	11.40
Newsprint [Member] | Latin America [Member]
Sales by shipment destination:
Sales	10.60
Newsprint [Member] | Europe and Other [Member]
Sales by shipment destination:
Sales	0
Pulp [Member]
Sales by shipment destination:
Sales	44.70
Pulp [Member] | Canada [Member]
Sales by shipment destination:
Sales	0
Pulp [Member] | United States [Member]
Sales by shipment destination:
Sales	0
Pulp [Member] | Asia and Australasia [Member]
Sales by shipment destination:
Sales	43.70
Pulp [Member] | Europe and Other [Member]
Sales by shipment destination:
Sales	1.00
Predecessor [Member]
Sales by shipment destination:
Sales		797.70	1,079.70	1,051.40	1,077.70	1,696.90
Property, plant and equipment by geographic location:
Property, plant and equipment			386.30	1,285.60	1,664.70	1,854.40
Predecessor [Member] | Canada [Member]
Sales by shipment destination:
Sales		109.50	161.20	138.30
Property, plant and equipment by geographic location:
Property, plant and equipment			377.70
Predecessor [Member] | United States [Member]
Sales by shipment destination:
Sales		384.10	511.60	521.60
Property, plant and equipment by geographic location:
Property, plant and equipment			8.60
Predecessor [Member] | Asia and Australasia [Member]
Sales by shipment destination:
Sales		234.50	316.80	287.60
Predecessor [Member] | Latin America [Member]
Sales by shipment destination:
Sales		67.60	88.30	99.30
Predecessor [Member] | Europe and Other [Member]
Sales by shipment destination:
Sales		2.00	1.80	4.60
Predecessor [Member] | Specialty Printing Papers [Member]
Sales by shipment destination:
Sales		503.80	690.40	674.00
Predecessor [Member] | Specialty Printing Papers [Member] | Canada [Member]
Sales by shipment destination:
Sales		78.40	120.20	103.00
Predecessor [Member] | Specialty Printing Papers [Member] | United States [Member]
Sales by shipment destination:
Sales		356.60	484.70	489.40
Predecessor [Member] | Specialty Printing Papers [Member] | Asia and Australasia [Member]
Sales by shipment destination:
Sales		38.20	38.70	30.60
Predecessor [Member] | Specialty Printing Papers [Member] | Latin America [Member]
Sales by shipment destination:
Sales		30.20	45.10	48.20
Predecessor [Member] | Specialty Printing Papers [Member] | Europe and Other [Member]
Sales by shipment destination:
Sales		0.40	1.70	2.80
Predecessor [Member] | Newsprint [Member]
Sales by shipment destination:
Sales		134.10	141.30	152.40
Predecessor [Member] | Newsprint [Member] | Canada [Member]
Sales by shipment destination:
Sales		31.10	36.40	35.10
Predecessor [Member] | Newsprint [Member] | United States [Member]
Sales by shipment destination:
Sales		27.50	26.90	31.30
Predecessor [Member] | Newsprint [Member] | Asia and Australasia [Member]
Sales by shipment destination:
Sales		38.10	34.80	34.90
Predecessor [Member] | Newsprint [Member] | Latin America [Member]
Sales by shipment destination:
Sales		37.40	43.20	51.10
Predecessor [Member] | Newsprint [Member] | Europe and Other [Member]
Sales by shipment destination:
Sales		0	0	0
Predecessor [Member] | Pulp [Member]
Sales by shipment destination:
Sales		159.80	248.00	225.00
Predecessor [Member] | Pulp [Member] | Canada [Member]
Sales by shipment destination:
Sales		0	4.60	0.20
Predecessor [Member] | Pulp [Member] | United States [Member]
Sales by shipment destination:
Sales		0	0	0.90
Predecessor [Member] | Pulp [Member] | Asia and Australasia [Member]
Sales by shipment destination:
Sales		158.20	243.30	222.10
Predecessor [Member] | Pulp [Member] | Latin America [Member]
Sales by shipment destination:
Sales		0	0	0
Predecessor [Member] | Pulp [Member] | Europe and Other [Member]
Sales by shipment destination:
Sales		1.60	0.10	1.80

XML

CONSOLIDATED BALANCE SHEETS (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011 Predecessor [Member]
Assets
Cash and cash equivalents	16.6	12.2	25.1
Restricted cash (note 10)	0.7	3.7	0
Accounts receivable (note 11)	114.0	140.8	134.9
Inventories (note 12)	125.0	131.5	146.9
Prepaids and other (note 13)	8.9	13.0	20.0
Assets held for sale (note 9)	34.30	56.20	0
Total Current Assets	299.5	357.4	326.9
Property, plant and equipment (note 14)	611.60	614.10	386.30
Goodwill (note 15)	56.70	56.70	0
Other assets (note 16)	11.00	11.90	24.40
Total Assets	978.8	1,040.1	737.6
Liabilities
Accounts payable and accrued liabilities (note 17)	113.80	97.50	174.50
Current portion of long-term debt (note 18)	6.6	6.7	466.8
Liabilities associated with assets held for sale (note 9)	15.20	14.80	0
Total Current Liabilities	135.6	119.0	641.3
Long-term debt (note 18)	422.00	458.90	375.50
Employee future benefits (note 19)	289.7	300.4	305.7
Other long-term obligations (note 20)	8.9	9.0	19.2
Deferred income taxes (note 21)	0	0	3.6
Deferred credits (note 22)	0	0	9.6
Total Liabilities	856.2	887.3	1,354.9
Equity (Deficiency)
Common stock: no par value; unlimited shares authorized; issued and outstanding: 14,527,571 shares (September 30, 2012 - 14,400,000 shares and December 31, 2011 - 381,900,450 shares)	144.9	144.9	1,035.2
Preferred stock: par value determined at time of issue; authorized 100,000,000 shares; issued and outstanding: nil shares	0	0	0
Additional paid-in capital	0	0	16.6
Deficit	(35.20)	0	(1,556.00)
Accumulated other comprehensive income (loss) (note 23)	6.60	0	(89.40)
Stockholders' Equity Attributable to Parent	116.3	144.9	(593.6)
Non-controlling interest (deficit) (note 8)	6.3	7.9	(23.7)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	122.60	152.80	(617.30)
Total Liabilities and Equity	978.8	1,040.1	737.6

XML

CONSOLIDATED BUSINESS SEGMENTS (Tables)

12 Months Ended

Dec. 31, 2012

Consolidated Business Segments [Member]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three months ended December 31, 2012 (successor)
	Specialty printing papers		Newsprint		Pulp			Corporate adjustments			Consolidated
Sales to external customers	$	171.8	$	44.0	$	44.7		$	–		$	260.5
Inter-segment sales		–		–		7.1			(7.1	)		–
Depreciation and amortization		11.2		1.4		0.3						12.9
Operating earnings (loss)		1.2		2.4		(9.3	)		–			(5.7	)
Total assets		710.5		182.6		85.5			0.2			978.8
Additions to property, plant and equipment		6.5		1.8		2.1			–			10.4

	Nine months ended September 30, 2012 (predecessor)
	Specialty printing papers		Newsprint		Pulp			Corporate adjustments			Consolidated
Sales to external customers	$	503.8	$	134.1	$	159.8		$	–		$	797.7
Inter-segment sales		–		–		22.5			(22.5	)		–
Depreciation and amortization		18.9		2.7		1.8			–			23.4
Restructuring (note 24)		2.9		0.8		1.6			–			5.3
Operating earnings (loss)		19.3		11.7		(6.2	)		–			24.8
Total assets		761.1		193.4		85.4			0.2			1,040.1
Additions to property, plant and equipment		9.2		1.2		1.8			–			12.2

	Year ended December 31, 2011 (predecessor)
	Specialty printing papers			Newsprint			Pulp			Corporate adjustments			Consolidated
Sales to external customers	$	690.4		$	141.3		$	248.0		$	–		$	1,079.7
Inter-segment sales		–			–			39.3			(39.3	)		–
Depreciation and amortization		81.3			9.1			15.1			–			105.5
Restructuring (note 24)		4.0			0.8			1.1			–			5.9
Impairment and other closure costs (note 7)		507.2			71.1			83.5			–			661.8
Operating loss		(565.1	)		(69.2	)		(70.2	)		–			(704.5	)
Total assets		432.0			216.5			75.8			13.3			737.6
Additions to property, plant and equipment		9.2			6.1			4.4			–			19.7

	Year ended December 31, 2010 (predecessor)
	Specialty printing papers			Newsprint			Pulp		Corporate adjustments			Consolidated
Sales to external customers	$	674.0		$	152.4		$	225.0	$	–		$	1,051.4
Inter-segment sales		–			–			23.4		(23.4	)		–
Depreciation and amortization		78.8			16.6			14.3		–			109.7
Restructuring (note 24)		8.2			16.1			1.0		–			25.3
Impairment and other closure costs (note 7)		104.4			190.1			–		–			294.5
Operating earnings (loss)		(149.7	)		(224.3	)		22.4		–			(351.6	)
Total assets		1,046.0			450.6			185.1		14.5			1,696.2
Additions to property, plant and equipment		9.1			1.8			0.3		–			11.2

Consolidated Geographic Business Segments [Member]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three months ended December 31, 2012 (successor)
Sales by shipment destination:		Specialty printing papers		Newsprint		Pulp		Total
Canada		$	25.4	$	12.9	$	–	$	38.3
United States			122.6		9.1		–		131.7
Asia and Australasia			14.3		11.4		43.7		69.4
Latin America			9.5		10.6				20.1
Europe and other			–		–		1.0		1.0
		$	171.8	$	44.0	$	44.7	$	260.5

	Nine months ended September 30, 2012 (predecessor)
Sales by shipment destination:		Specialty printing papers		Newsprint		Pulp		Total
Canada		$	78.4	$	31.1	$	–	$	109.5
United States			356.6		27.5		–		384.1
Asia and Australasia			38.2		38.1		158.2		234.5
Latin America			30.2		37.4		–		67.6
Europe and other			0.4		–		1.6		2.0
		$	503.8	$	134.1	$	159.8	$	797.7

	Year ended December 31, 2011 (predecessor)
Sales by shipment destination:		Specialty printing papers		Newsprint		Pulp		Total
Canada		$	120.2	$	36.4	$	4.6	$	161.2
United States			484.7		26.9		–		511.6
Asia and Australasia			38.7		34.8		243.3		316.8
Latin America			45.1		43.2		–		88.3
Europe and other			1.7		–		0.1		1.8
		$	690.4	$	141.3	$	248.0	$	1,079.7

	Year ended December 31, 2010 (predecessor)
Sales by shipment destination:		Specialty printing papers		Newsprint		Pulp		Total
Canada		$	103.0	$	35.1	$	0.2	$	138.3
United States			489.4		31.3		0.9		521.6
Asia and Australasia			30.6		34.9		222.1		287.6
Latin America			48.2		51.1		–		99.3
Europe and other			2.8		–		1.8		4.6
		$	674.0	$	152.4	$	225.0	$	1,051.4

	Successor				Predecessor
	As at December 31		As at September 30		As at December 31
	2012		2012		2011
Property, plant and equipment by geographic location:
Canada	$	611.6	$	614.1	$	377.7
United States		–		–		8.6
	$	611.6	$	614.1	$	386.3

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ACCOUNTS RECEIVABLE (Details) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]	Dec. 31, 2008 Predecessor [Member]
Trade receivables	94.7	121.9	115.1
Less: allowance for doubtful accounts	(2.2)	0	(2.0)
Trade Receivables Net Current	92.5	121.9	113.1
Sales taxes receivable	12.6	12.7	7.5
Pulp and Paper Green Transformation Program receivable	0	0	6.9
Other receivables	8.9	6.2	7.4
Accounts Receivable, Net, Current	114.0	140.8	134.9	120.6	101.5	221.7

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RESTRUCTURING (Details Textual) (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Restructuring charges	0
Predecessor [Member]
Restructuring charges		5.3	5.9	25.3	17.9	30.1

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EMPLOYEE FUTURE BENEFITS (Details 5) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012
Pension Plans, Defined Benefit [Member]
2013	30.6
2014	30.5
2015	30.1
2016	29.6
2017	29.0
2018 - 2022	133.5
Other Benefit Plans [Member]
2013	6.0
2014	6.3
2015	6.7
2016	7.0
2017	7.4
2018 - 2022	42.4

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CONSOLIDATED STATEMENTS OF EQUITY (DEFICIENCY) (CAD) In Millions, except Share data	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Noncontrolling Interest [Member]	Total	Predecessor [Member] Common Stock [Member]	Predecessor [Member] Additional Paid-In Capital [Member]	Predecessor [Member] Retained Earnings [Member]	Predecessor [Member] Accumulated Other Comprehensive Income (Loss) [Member]	Predecessor [Member] Noncontrolling Interest [Member]	Predecessor [Member]
Balance at Dec. 31, 2007
Net earnings (loss)												(219.0)
Balance at Dec. 31, 2008												806.60
Net earnings (loss)												(5.6)
Balance at Dec. 31, 2009							1,035.00	16.40	(185.10)	(52.70)	(18.00)	795.60
Balance (in shares) at Dec. 31, 2009							381,753,490
Stock option compensation expense							0	0.2	0	0	0	0.2
Net earnings (loss)							0	0	(396.9)	0	(1.3)	(398.2)
Distributions to non-controlling interest							0	0	0	0	(0.9)	(0.9)
Other comprehensive income (loss), net of tax							0	0	0	6.6	0.1	6.7
Balance at Dec. 31, 2010							1,035.00	16.60	(582.00)	(46.10)	(20.10)	403.40
Balance (in shares) at Dec. 31, 2010							381,753,490
Stock option compensation expense							0	0.2	0	0	0	0.2
Net earnings (loss)							0	0	(974.0)	0	(2.6)	(976.6)
Distributions to non-controlling interest							0	0	0	0	(1.0)	(1.0)
Other comprehensive income (loss), net of tax							0	0	0	(43.3)	0	(43.3)
Common shares issued							0.2	(0.2)	0	0	0	0
Common shares issued (in shares)							146,960
Balance at Dec. 31, 2011							1,035.20	16.60	(1,556.00)	(89.40)	(23.70)	(617.30)
Balance (in shares) at Dec. 31, 2011							381,900,450
Stock option compensation expense							0	0.1	0	0	0	0.1
Net earnings (loss)							0	0	618.4	0	31.9	650.3
Distributions to non-controlling interest							0	0	0	0	(0.3)	(0.3)
Other comprehensive income (loss), net of tax							0	0	0	(24.7)	0	(24.7)
Common shares issued							144.9	0	0	0	0	144.9
Common shares issued (in shares)							14,400,000
Cancellation of Predecessor equity (deficiency)							(1,035.2)	(16.7)	937.6	114.1	0	(0.2)
Cancellation of Predecessor equity (deficiency) (in shares)							(381,900,450)
Balance at Sep. 30, 2012	144.90	0	0	0	7.90	152.80
Balance (in shares) at Sep. 30, 2012	14,400,000
Net earnings (loss)	0	0	(35.2)	0	(1.5)	(36.7)
Distributions to non-controlling interest	0	0	0	0	(0.1)	(0.1)
Other comprehensive income (loss), net of tax	0	0	0	6.6	0	6.6
Common shares issued	0	0	0	0	0	0
Common shares issued (in shares)	127,571
Balance at Dec. 31, 2012	144.90	0	(35.20)	6.60	6.30	122.60
Balance (in shares) at Dec. 31, 2012	14,527,571

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ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (Details Textual) In Millions, unless otherwise specified	12 Months Ended			3 Months Ended
	Dec. 31, 2012 CAD	Dec. 31, 2010 CAD	Dec. 31, 2012 USD ($)	Dec. 31, 2012 Prsc Land Developments Ltd [Member] CAD	Dec. 31, 2012 Snowflake Mill [Member] USD ($)	Dec. 31, 2008 Snowflake Mill [Member] USD ($)
Proceeds from Sale of Land Held-for-use	5.8	8.6
Payments for (Proceeds from) Investments				3.0
Assets Held-for-sale, Long Lived			13.5
Impairment Severances and Other Closure Costs Discontinued Operations Gross	19.7
Multiemployer Plans, Withdrawal Obligation					$ 11.7	$ 3.5

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EARNINGS PER SHARE (Details) (CAD) In Millions, except Per Share data, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Net earnings (loss) attributable to the company	(35.2)
Weighted average shares used in computation of basic earnings per share (in millions)	14.4
Weighted average shares from assumed conversion of dilutive options (in millions)	0
Weighted average shares used in computation of diluted earnings per share (in millions)	14.4
Basic and diluted net earnings (loss) per share from continuing operations attributable to the company's common shareholders (note 27) (in dollars per share)	(1.55)	1.63	(2.04)	(0.99)
Basic and diluted net loss per share from discontinued operations attributable to the company's common shareholders (in dollars per share)	(0.89)	(0.01)	(0.51)	(0.05)
Basic and diluted earnings (loss) per share attributable to the companys common shareholders (in dollars)	(2.44)
Predecessor [Member]
Net earnings (loss) attributable to the company		618.4	(974.0)	(396.9)	(4.4)	(219.8)
Weighted average shares used in computation of basic earnings per share (in millions)		381.9	381.9	381.8
Weighted average shares from assumed conversion of dilutive options (in millions)		0	0	0
Weighted average shares used in computation of diluted earnings per share (in millions)		381.9	381.9	381.8
Basic and diluted net earnings (loss) per share from continuing operations attributable to the company's common shareholders (note 27) (in dollars per share)		1.63	(2.04)	(0.99)
Basic and diluted net loss per share from discontinued operations attributable to the company's common shareholders (in dollars per share)		(0.01)	(0.51)	(0.05)
Basic and diluted earnings (loss) per share attributable to the companys common shareholders (in dollars)		1.62	(2.55)	(1.04)

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STOCK-BASED COMPENSATION PLANS (Details 1) (CAD)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Risk-free interest rate		3.00%	2.50%
Annual dividends per share
Expected stock price volatility		74.00%	70.00%
Expected option life (in years)		10 years	10 years
Average fair value of options granted (in dollars per share)		0.25	0.06

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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Income Loss From Continuing Operations Before Income Taxes [Table Text Block]

The components of earnings (loss) before income taxes consist of the following:

	Successor			Predecessor
	Three months ended			Nine months ended			Years ended
	December 31			September 30			December 31
	2012			2012			2011			2010
Canada	$	(31.6	)	$	651.2		$	(773.0	)	$	(400.0	)
United States		8.0			1.6			(16.7	)		(14.0	)
Other		–			–			0.2			15.5
Earnings (loss) from continuing operations	$	(23.6	)	$	652.8		$	(789.5	)	$	(398.5	)
Earnings (loss) from discontinued operations	$	(12.9	)	$	(3.6	)	$	(194.5	)	$	(16.0	)
Earnings (loss) before income taxes	$	(36.5	)	$	649.2		$	(984.0	)	$	(414.5	)

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The income tax (recovery) expense consists of:

	Successor			Predecessor
	Three months ended			Nine months ended			Years ended
	December 31			September 30			December 31
	2012			2012			2011			2010
Canada:
Current	$	–		$	–		$	(0.1	)	$	0.2
Deferred		(1.0	)		(1.1	)		(6.6	)		(31.6	)
		(1.0	)		(1.1	)		(6.7	)		(31.4	)
United States:
Current		0.1			(0.4	)		0.2			(0.5	)
Deferred		1.1			0.4			(2.0	)		12.0
		1.2			–			(1.8	)		11.5
Other:
Current		–			–			0.1			0.1
Deferred		–			–			–			–
		–			–			0.1			0.1
Total from continuing operations
Current		0.1			(0.4	)		0.2			(0.2	)
Deferred		0.1			(0.7	)		(8.6	)		(19.6	)
	$	0.2		$	(1.1	)	$	(8.4	)	$	(19.8	)
Total from discontinued operations
Current		–			–			–			–
Deferred		–			–			1.0			3.5
	$	–		$	–		$	1.0		$	3.5

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The reconciliation of income taxes calculated at the statutory rate to the actual income tax provision is as follows:

	Successor					Predecessor
	Three months ended					Nine months ended					Years ended
	December 31					September 30					December 31
	2012					2012					2011					2010
Income tax recovery at Canadian statutory income tax rates	$	(9.1	)	25.0	%	$	162.3		25.0	%	$	(260.8	)	26.5	%	$	(118.2	)	28.5	%
Increase (decrease) in income taxes for:
Non-taxable income and expenses		(1.8	)	5.0			7.4		1.1			2.0		(0.2	)		(3.2	)	0.8
Difference in foreign tax rate		(0.5	)	1.3			(1.0	)	(0.1	)		(25.4	)	2.5			(4.3	)	1.0
Release of deferred income taxes related to reduction in corporate income tax rates		–		–			–		–			11.3		(1.1	)		13.8		(3.3	)
Change in the deferred income tax estimate		–		–			–		–			(0.6	)	0.1			0.3		(0.1	)
Change in valuation allowance		11.9		(32.7	)		(164.9	)	(25.4	)		265.7		(27.0	)		98.3		(23.7	)
Adjustment to deferred credits		–		–			(9.6	)	(1.5	)		–		–			(5.9	)	1.4
Other		(0.3	)	0.9			4.7		0.7			0.4		(0.0	)		2.9		(0.7	)
Income tax expense (recovery)	$	0.2		(0.5	)%	$	(1.1	)	(0.2	)%	$	(7.4	)1	0.8	%	$	(16.3	)2	3.9	%

¹ Included $8.4 million income tax recovery related to continuing operations and $1.0 million income tax expense related to discontinued operations

² Included $19.8 million income tax recovery related to continuing operations and $3.5 million income tax expense related to discontinued operations

Schedule Of Deferred Tax Assets [Table Text Block]

The tax effects of temporary differences that give rise to significant current deferred tax assets are as follows:

	Successor						Predecessor
	As at December 31			As at September 30			As at December 31
Current	2012			2012			2011
Deferred income tax assets
Non-capital losses and temporary differences related to working capital	$	1.8		$	3.1		$	15.6
Employee future benefits		3.3			3.4			3.3
Other		5.6			4.3			(1.9	)
		10.7			10.8			17.0
Valuation allowance		(10.7	)		(10.8	)		(3.9	)
	$	–		$	–		$	13.1
Classification:
Prepaids and other (note 13)	$	–		$	–		$	13.1
	$	–		$	–		$	13.1

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The tax effects of temporary differences that give rise to significant non-current deferred tax assets (liabilities) are as follows:

	Successor						Predecessor
	As at December 31			As at September 30			As at December 31
Non-current	2012			2012			2011
Deferred income tax assets (liabilities)
Property, plant and equipment	$	126.3		$	119.7		$	215.5
Non-capital loss carry-forwards		14.9			12.9			69.1
Employee future benefits		77.3			76.9			77.0
Other		4.5			3.0			11.2
		223.0			212.5			372.8
Valuation allowance		(223.0	)		(212.5	)		(376.4	)
	$	–		$	–		$	(3.6	)

Summary of Income Tax Contingencies [Table Text Block]

Below is a reconciliation of the total amounts of unrecognized tax benefits:

	Successor		Predecessor
	Three months ended		Nine months ended		Year ended
	December 31		September 30		December 31
	2012		2012		2011
Unrecognized tax benefits, beginning of period	$	5.3	$	5.3	$	5.9
Current period tax positions		–		–		0.4
Settlements and lapse of statute of limitations		–		–		(1.0	)
Unrecognized tax benefits, end of period	$	5.3	$	5.3	$	5.3

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PREPAIDS AND OTHER (Details) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]	Dec. 31, 2008 Predecessor [Member]
Property taxes, insurance and licences	3.2	6.7	2.0
Derivative financial instruments	0	0	2.5
Deferred income tax assets (note 21)	0	0	13.1
Other	5.7	6.3	2.4
Prepaid Expense and Other Assets, Current	8.9	13.0	20.0	27.7	25.2	32.8

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EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

27. EARNINGS PER SHARE

The following table provides the reconciliation between basic and diluted earnings (loss) per share:

	Successor			Predecessor
	Three months ended			Nine months ended			Years ended
	December 31			September 30			December 31
	2012			2012			2011			2010
Net earnings (loss) attributable to the company	$	(35.2	)	$	618.4		$	(974.0	)	$	(396.9	)
Weighted average shares used in computation of basic earnings per share (in millions)		14.4			381.9			381.9			381.8
Weighted average shares from assumed conversion of dilutive options (in millions)		–			–			–			–
Weighted average shares used in computation of diluted earnings per share (in millions)		14.4			381.9			381.9			381.8
Basic and diluted earnings (loss) per share from continuing operations	$	(1.55	)	$	1.63		$	(2.04	)	$	(0.99	)
Basic and diluted earnings (loss) per share from discontinued operations	$	(0.89	)	$	(0.01	)	$	(0.51	)	$	(0.05	)
Basic and diluted earnings (loss) per share attributable to the company’s common shareholders (in dollars)	$	(2.44	)	$	1.62		$	(2.55	)	$	(1.04	)

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FAIR VALUE MEASUREMENT (Details 3) (Not Designated As Hedging Instrument [Member], CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended	3 Months Ended	9 Months Ended	12 Months Ended	3 Months Ended	9 Months Ended	12 Months Ended	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012 Predecessor [Member]	Dec. 31, 2011 Predecessor [Member]	Dec. 31, 2012 Currency Swap [Member] Other Expense [Member]	Sep. 30, 2012 Currency Swap [Member] Other Expense [Member] Predecessor [Member]	Dec. 31, 2011 Currency Swap [Member] Other Expense [Member] Predecessor [Member]	Dec. 31, 2012 Commodity Swap Contracts Related To Pulp and Newsprint Hedges [Member] Other Expense [Member]	Sep. 30, 2012 Commodity Swap Contracts Related To Pulp and Newsprint Hedges [Member] Other Expense [Member] Predecessor [Member]	Dec. 31, 2011 Commodity Swap Contracts Related To Pulp and Newsprint Hedges [Member] Other Expense [Member] Predecessor [Member]	Dec. 31, 2012 Commodity Swap Contracts Related To Natural Gas and Old Newspaper Hedges [Member] Other Expense [Member]	Sep. 30, 2012 Commodity Swap Contracts Related To Natural Gas and Old Newspaper Hedges [Member] Other Expense [Member] Predecessor [Member]	Dec. 31, 2011 Commodity Swap Contracts Related To Natural Gas and Old Newspaper Hedges [Member] Other Expense [Member] Predecessor [Member]
Derivative Instruments, Gain (Loss) Recognized In Income, Net	0	(1.2)	(3.4)	0	(1.1)	(2.1)	0	0.1	(0.6)	0	(0.2)	(0.7)

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012		Sep. 30, 2012		Dec. 31, 2011 Predecessor [Member]		Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]	Dec. 31, 2008 Predecessor [Member]
Unrecognized pension and other post-retirement benefit costs	6.6		0		(89.6)
Foreign currency translation adjustments, net of related hedging activities	0	[1]	0	[1]	0.7	[1]
Unrecognized loss on interest rate hedges	0		0		(0.5)
Accumulated Other Comprehensive Income (Loss), Net Of Tax	6.60		0		(89.40)		(46.10)	(52.70)	(46.40)

[1] The accumulated net adjustment is comprised of non-taxable translation gain of $nil million (2011 $2.3 million gain) and a net revaluation of long-term debt designated as a net investment hedge of $nil million loss (2011 $1.6 million loss), net of tax of $nil million (2011 $nil million). Effective October 1, 2011, the company no longer designates the net revaluation of long-term debt as a net investment hedge.

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EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The following table provides the reconciliation between basic and diluted earnings (loss) per share:

	Successor			Predecessor
	Three months ended			Nine months ended			Years ended
	December 31			September 30			December 31
	2012			2012			2011			2010
Net earnings (loss) attributable to the company	$	(35.2	)	$	618.4		$	(974.0	)	$	(396.9	)
Weighted average shares used in computation of basic earnings per share (in millions)		14.4			381.9			381.9			381.8
Weighted average shares from assumed conversion of dilutive options (in millions)		–			–			–			–
Weighted average shares used in computation of diluted earnings per share (in millions)		14.4			381.9			381.9			381.8
Basic and diluted earnings (loss) per share from continuing operations	$	(1.55	)	$	1.63		$	(2.04	)	$	(0.99	)
Basic and diluted earnings (loss) per share from discontinued operations	$	(0.89	)	$	(0.01	)	$	(0.51	)	$	(0.05	)
Basic and diluted earnings (loss) per share attributable to the company’s common shareholders (in dollars)	$	(2.44	)	$	1.62		$	(2.55	)	$	(1.04	)

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PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

14. PROPERTY, PLANT AND EQUIPMENT

The components of property, plant and equipment are as follows:

	As at December 31, 2012 (successor)
	Cost		Accumulated depreciation, amortization and impairment		Net book value
Buildings and land
Specialty printing papers and newsprint	$	224.5	$	2.7	$	221.8
Pulp		9.8		0.1		9.7
Machinery and equipment
Specialty printing papers and newsprint		384.9		9.9		375.0
Pulp		5.3		0.2		5.1
	$	624.5	$	12.9	$	611.6

	As at September 30, 2012 (successor)
	Cost		Accumulated depreciation, amortization and impairment		Net book value
Buildings and land
Specialty printing papers and newsprint	$	221.7	$	–	$	221.7
Pulp		9.6		–		9.6
Machinery and equipment
Specialty printing papers and newsprint		379.5		–		379.5
Pulp		3.3		–		3.3
	$	614.1	$	–	$	614.1

	As at December 31, 2011 (predecessor)
	Cost		Accumulated depreciation, amortization and impairment		Net book value
Buildings and land
Specialty printing papers and newsprint	$	574.6	$	396.0	$	178.6
Pulp		98.8		96.3		2.5
Machinery and equipment
Specialty printing papers and newsprint		2,756.2		2,568.7		187.5
Pulp		785.2		767.5		17.7
	$	4,214.8	$	3,828.5	$	386.3

Machinery and equipment with a net carrying amount of $7.3 million on December 31, 2012 and $7.5 million on September 30, 2012 (2011 – $9.6 million) were held under capital leases. These assets had a cost of $7.5 million on December 31, 2012 and September 30, 2012 (2011 – $15.1 million) and accumulated depreciation and amortization of $0.2 million on December 31, 2012 and $nil million on September 30, 2012 (2011 – $5.5 million).

Interest capitalized in connection with capital projects was $nil for both 2012 and 2011.

Property, plant and equipment are pledged as collateral against the long-term debt of the company. See note 18, Long-term debt, for detailed disclosure of the collateral arrangements of the company.

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STOCK-BASED COMPENSATION PLANS

12 Months Ended

Dec. 31, 2012

Share-Based Compensation [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

28. STOCK-BASED COMPENSATION PLANS

(a) Details of stock-based compensation expense:

	Successor		Predecessor
	Three months ended		Nine months ended		Years ended
	December 31		September 30		December 31
	2012		2012		2011		2010
Stock option awards	$	–	$	–	$	0.2	$	0.2
Restricted share units		–		–		0.1		0.3
Deferred share units		–		–		–		–
	$	–	$	–	$	0.3	$	0.5

(b) Stock option plans

The company had an employee share option plan in place for its key officers, former directors and employees that provided for the issuance of up to a maximum of 12.0 million common shares. All stock options were cancelled on September 13, 2012 when the company exited from CCAA proceedings.

Prior to their cancellation, the long-term component of the mid- to long-term incentive plan (MLTIP) for the company’s executives included stock options.  Vesting of the stock options granted under the MLTIP was subject to the weighted average price per share of the common shares for all sales of such shares on the Toronto Stock Exchange (TSX) over 20 consecutive trading days reaching or exceeding a price per share equal to twice the exercise price.  These options had a 10-year life, and an exercise price that was established as 25% over the weighted average price per share of the common shares for all sales of common shares on the TSX during the five consecutive trading days preceding the date of the grant of the options. These options were exercisable on or after the earlier of August 1, 2012 or on the occurrence of a change-of-control event involving the company.

Options granted, other than those granted pursuant to the company’s MLTIP, had a maximum term of 10 years. These options were formerly exercisable as to one-third on and after the first anniversary date, as to two-thirds on and after the second anniversary date and as to all on and after the third anniversary date, unless, in the case of options granted on March 28, 2007, the market price of the common shares exceeded a specified acceleration price, in which case all of the options were exercisable at that time.  In general, market price for options was determined by the weighted average price per share for all sales of common shares on the TSX on the date on which a determination of market price was required. However, market price for options granted annually to the company’s directors under the director compensation program was set 25% above the market price as calculated above.

The company applied the fair value-based method for recording share options granted to directors, officers and employees. Under the fair value method, compensation cost is measured at fair value at the date of grant, and is expensed over the award’s vesting period. Compensation expense related to performance-based options is recognized when it is probable that the performance conditions will be achieved.

As at December 31, 2012 and September 30, 2012, the total remaining unrecognized compensation cost associated with the stock options totalled $nil (2011 – $0.1 million) due to their cancellation on September 13, 2012.

The fair value of share options was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:

	2012		2011			2010
Risk-free interest rate		N/A		3.0	%		2.5	%
Annual dividends per share		N/A		Nil			Nil
Expected stock price volatility		N/A		74	%		70	%
Expected option life (in years)		N/A		10.0			10.0
Average fair value of options granted (in dollars)		N/A	$	0.25		$	0.06

The risk-free interest rate was based on a zero-coupon Government of Canada bond with a remaining term approximately equivalent to the expected life of the stock option. The company estimated the annual dividends per share, expected stock price volatility and expected option life based on historical experience.

Changes in the number of options outstanding during the years ended December 31 were as follows:

	2012					2011					2010
	Number of options			Weighted average exercise price (in dollars)		Number of options			Weighted average exercise price (in dollars)		Number of options			Weighted average exercise price (in dollars)
Beginning of year		7,522,337		$	0.91		7,581,693		$	1.00		2,973,551		$	2.72
Granted		–			–		234,000			0.38		5,080,647			0.13
Exercised		–			–		–			–		–			–
Forfeited		(54,000	)		0.38		–			–		–			–
Expired or cancelled		(7,468,337	)		0.91		(293,356	)		2.98		(472,505	)		2.37
End of year		–		$	–		7,522,337		$	0.91		7,581,693		$	1.00

(c) Restricted share units

The company had established a restricted share unit (RSU) plan for its former directors and key executives.  The RSU plan was cancelled on September 13, 2012 when the company exited from CCAA proceedings. Under the terms of this plan, senior executives were eligible for incentive remuneration paid to them in the form of RSUs.  Each RSU, once vested, entitled the holder to receive one common share of the company.  The fair value of RSUs was based on the market value of the company’s shares on the day of the grant.

RSUs vested in accordance with terms determined by the company, which reflected, among other things, one or more of the following factors: (i) the return to shareholders with or without reference to other comparable businesses; (ii) the financial performance or results of the corporation; (iii) other performance criteria relating to the corporation; and (iv) the length of time of service by the participant. The performance terms that the company applied to RSUs were intended to strengthen the link between the corporation’s performance and the value of the RSUs at the time that they were paid out.

Prior to their cancellation, the long-term component of the MLTIP included performance-based RSUs. Vesting of these RSUs occurred when the weighted average price per share of the company’s common shares for all sales of such shares on the TSX over 20 consecutive trading days reached or exceeded twice the price per share equal to 25% over the weighted average price per share of the common shares for all sales of common shares on the TSX during the five consecutive trading days preceding the date the RSUs were issued. These RSUs were to be paid out on the earlier of August 1, 2012 or on the occurrence of a change of control event involving the company. Compensation expense related to performance-based RSUs was recognized when it was probable that the performance conditions would be achieved.

As at December 31, 2012 the total remaining unrecognized compensation cost associated with the RSUs totalled $nil (2011 – $0.1 million) due to their cancellation on September 13, 2012.

Changes in the number of outstanding RSUs during the year ended December 31, 2012 were as follows:

	Number of shares			Weighted average fair value at grant date (in dollars)
Beginning of year		3,214,686		$	0.11
Granted		–			–
Vested/exercised		–			–
Expired or cancelled		(3,214,686	)		0.11
End of year		–			–

(d) Deferred share unit plan

The company had established a deferred share unit (DSU) plan for its former directors. The DSU plan was cancelled on September 13, 2012 when the company exited from CCAA proceedings. Under the terms of this plan, directors could elect to receive their annual cash remuneration in DSUs, cash or a combination thereof. Each DSU initially had a value equivalent to the company’s weighted average share price on the TSX during the 10 consecutive trading days prior to the issuance date of the DSU. A director’s DSU account was credited with dividend equivalents in the form of additional DSUs when dividends were paid on common shares. A director could elect the date of redemption by filing an irrevocable written election with the company no later than December 15 of the calendar year commencing immediately after the director’s termination date. As at December 31, 2012, all DSUs had been cancelled (2011 – 474,416).

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INVENTORIES (Details Textual) (CAD) In Millions, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011
Finished Goods [Member]
Inventory Write-down	0.3	0.1	2.1
Raw Material [Member]
Inventory Write-down	2.0	0.8	4.5

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INCOME TAXES (Details) (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended		3 Months Ended	9 Months Ended	12 Months Ended		3 Months Ended	9 Months Ended	12 Months Ended		3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012 Predecessor [Member]	Dec. 31, 2011 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2012 Canada [Member]	Sep. 30, 2012 Canada [Member] Predecessor [Member]	Dec. 31, 2011 Canada [Member] Predecessor [Member]	Dec. 31, 2010 Canada [Member] Predecessor [Member]	Dec. 31, 2012 United States [Member]	Sep. 30, 2012 United States [Member] Predecessor [Member]	Dec. 31, 2011 United States [Member] Predecessor [Member]	Dec. 31, 2010 United States [Member] Predecessor [Member]	Dec. 31, 2012 Other Country [Member]	Sep. 30, 2012 Other Country [Member] Predecessor [Member]	Dec. 31, 2011 Other Country [Member] Predecessor [Member]	Dec. 31, 2010 Other Country [Member] Predecessor [Member]
Earnings (loss) from continuing operations	(35.2)	618.4	(974.0)	(396.9)	(31.6)	651.2	(773.0)	(400.0)	8.0	1.6	(16.7)	(14.0)	0	0	0.2	15.5
Earnings (loss) from discontinued operations	(12.9)	(3.6)	(194.5)	(16.0)
Earnings (loss) before income taxes	(36.5)	649.2	(984.0)	(414.5)

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OTHER ASSETS

12 Months Ended

Dec. 31, 2012

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Assets Disclosure [Text Block]

16. OTHER ASSETS

The components of other assets are as follows:

	Successor				Predecessor
	As at December 31		As at September 30		As at December 31
	2012		2012		2011
Deferred financing costs	$	9.0	$	9.8	$	11.8
Deferred charges and other		1.8		1.9		9.9
Derivative financial instruments		–		–		2.5
Accrued benefit asset – pension plan (note 19)		0.2		0.2		0.2
	$	11.0	$	11.9	$	24.4

Other assets are pledged as collateral against the long-term debt of the company. See note 18, Long-term debt, for detailed disclosure of the collateral arrangements of the company.

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FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule Of Aging Of Receivables [Table Text Block]

Aging of receivables were as follows:

	Successor					Predecessor
	As at  December 31			As at  September 30		As at  December 31
	2012			2012		2011
Trade receivables, gross
Current	$	86.3		$	110.7	$	100.9
Past due 1-30 days		7.3			6.7		13.6
Past due 31-90 days		0.2			3.6		0.3
Past due over 90 days		0.9			0.9		0.3
		94.7			121.9		115.1
Allowance for doubtful accounts		(2.2	)		–		(2.0	)
Trade receivables, net		92.5			121.9		113.1
Other receivables, including sales tax recoverables		21.5			18.9		21.8
Accounts receivable (note 11)	$	114.0		$	140.8	$	134.9

Allowance for Credit Losses on Financing Receivables [Table Text Block]

The movement in the allowance for doubtful accounts in respect of trade receivables were as follows:

	Successor					Predecessor
	As at  December 31		As at  September 30			As at  December 31
	2012		2012			2011
Balance, beginning of period	$	–	$	2.0		$	3.0
Increase (decrease) in provision		2.2		(2.0	)		(1.0	)
Balance, end of period (note 11)	$	2.2	$	–		$	2.0

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EMPLOYEE FUTURE BENEFITS (Details) (CAD) In Millions, unless otherwise specified	3 Months Ended			9 Months Ended	12 Months Ended		9 Months Ended	12 Months Ended		9 Months Ended	12 Months Ended
	Dec. 31, 2012 Pension Plans, Defined Benefit [Member]	Dec. 31, 2012 Defined Contribution Plan [Member]	Dec. 31, 2012 Other Benefit Plans [Member]	Sep. 30, 2012 Predecessor [Member] Pension Plans, Defined Benefit [Member]	Dec. 31, 2011 Predecessor [Member] Pension Plans, Defined Benefit [Member]	Dec. 31, 2010 Predecessor [Member] Pension Plans, Defined Benefit [Member]	Sep. 30, 2012 Predecessor [Member] Defined Contribution Plan [Member]	Dec. 31, 2011 Predecessor [Member] Defined Contribution Plan [Member]	Dec. 31, 2010 Predecessor [Member] Defined Contribution Plan [Member]	Sep. 30, 2012 Predecessor [Member] Other Benefit Plans [Member]	Dec. 31, 2011 Predecessor [Member] Other Benefit Plans [Member]	Dec. 31, 2010 Predecessor [Member] Other Benefit Plans [Member]
Service cost for the period	0.2		0.4	1.0	1.4	2.1				1.0	1.3	2.0
Interest cost	3.7		1.5	12.3	17.7	20.5				5.3	7.6	10.0
Expected return on assets	(3.6)			(11.2)	(16.5)	(16.2)
Recognition (reversal) of downsizing program	0		0	(0.2)	1.7	0				(1.4)	0
Actuarial (gains) losses	0		0	6.4	7.9	6.3				0.1	0.4	0.2
Prior service costs	0		0	0.3	0.4	0.4				(2.8)	(3.7)	(3.6)
Pension benefit plans, Defined benefit plan, net periodic benefit cost	0.3			8.6	12.6	13.1
Service cost for the period		0.7					2.4	3.4	3.5
Multi-employer industry-wide pension plan service cost for the period		2.0					7.5	10.1	9.8
Net periodic benefit cost for pension benefit plans		3.0					18.5	26.1	26.4
Net periodic benefit cost for other benefit plans			1.9							3.6	5.6	8.6

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COMMITMENTS (Details) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012
2013	6
2014	4.3
2015	1.7
2016	1.7
2017	1.6
Subsequent years	0.7
Operating Leases, Future Minimum Payments Due	16

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CONSOLIDATED STATEMENTS OF CASH FLOWS (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash flows provided (used) by: Operations
Net earnings (loss)	(36.7)
Items not requiring (providing) cash
Depreciation and amortization	12.9
Impairment and other closure costs (notes 7 and 9)	8.2
Deferred income taxes (note 21)	0.1
Foreign exchange loss (gain) on long-term debt	3.2
Non-cash reorganization items	2.4
Non-cash interest on compromised notes	0
Employee future benefits, expense over (under) cash contributions	(3.4)
Decrease in other long-term obligations	(0.1)
Loss (gain) on disposal of property, plant and equipment	0.4
Other	0.2
Changes in non-cash working capital
Accounts receivable	41.1
Inventories	11.6
Prepaids and other	4.5
Accounts payable and accrued liabilities	7.7
Cash flows provided (used) by operations	52.1	(44.0)
Investing
Additions to property, plant and equipment	(10.4)	12.2
Proceeds from sale of property, plant and equipment	0.8	11.5
Decrease (increase) in restricted cash	3.4	6.4
Decrease (increase) in other assets	0	(3.7)
Cash flows used by investing activities	(6.2)	(3.4)
Financing
Increase (decrease) in revolving loan	(40.0)	16.0
Redemption of senior notes (note 18)	0
Proceeds on issuance of senior secured notes (note 18)	0	33.1
Note exchange costs (note 18)	0
Deferred financing costs (note 18)	0	(9.3)
DIP financing costs	0	3.8
Settlement on purchase of senior notes (note 18)	0
Decrease in other long-term debt	0	(0.9)
Share issuance costs	0	0.2
Cash flows provided (used) by financing activities	(40.0)	34.9
Cash and cash equivalents, increase (decrease) in the period	5.9	(12.5)
Cash and cash equivalents, beginning of period	12.2	25.1
Cash and cash equivalents, end of period 1	16.6	12.2
Supplemental disclosures:
Income taxes paid (recovered)	0
Net interest paid	11.0
Common stock issued under stock option compensation plan	0
Non-cash exchange of 8.625% senior notes	0
Non-cash issuance of 11.0% senior notes	0
Non-cash difference in carrying value of senior notes on modification	0
1 Cash and cash equivalents included in assets held for sale	1.9
Predecessor [Member]
Cash flows provided (used) by: Operations
Net earnings (loss)		650.3	(976.6)	(398.2)
Items not requiring (providing) cash
Depreciation and amortization		23.4	112.4	119.3
Impairment and other closure costs (notes 7 and 9)		3.3	823.6	294.5
Deferred income taxes (note 21)		(0.7)	(7.6)	(16.1)
Foreign exchange loss (gain) on long-term debt		(24.0)	9.7	(27.6)
Non-cash reorganization items		(707.4)	0	0
Non-cash interest on compromised notes		48.4	0	0
Employee future benefits, expense over (under) cash contributions		(8.4)	(8.0)	(2.4)
Decrease in other long-term obligations		0	(3.1)	(4.2)
Loss (gain) on disposal of property, plant and equipment		(6.7)	(0.1)	(7.2)
Other		2.6	(1.8)	10.3
Changes in non-cash working capital
Accounts receivable		(22.9)	(14.3)	(19.1)
Inventories		8.7	(17.1)	19.3
Prepaids and other		(0.5)	7.6	(2.4)
Accounts payable and accrued liabilities		(10.1)	3.8	(10.3)
Cash flows provided (used) by operations		(44.0)	(71.5)	(44.1)
Investing
Additions to property, plant and equipment		(12.2)	(19.7)	(11.2)
Proceeds from sale of property, plant and equipment		11.5	1.2	7.9
Decrease (increase) in restricted cash		(6.4)	0	0
Decrease (increase) in other assets		3.7	0.8	(1.2)
Cash flows used by investing activities		(3.4)	(17.7)	(4.5)
Financing
Increase (decrease) in revolving loan		16.0	48.0	(14.5)
Redemption of senior notes (note 18)		0	(25.8)	0
Proceeds on issuance of senior secured notes (note 18)		33.1	0	98.4
Note exchange costs (note 18)		0	0	(8.3)
Deferred financing costs (note 18)		(9.3)	(2.4)	(4.5)
DIP financing costs		(3.8)	0	0
Settlement on purchase of senior notes (note 18)		0	0	(9.2)
Decrease in other long-term debt		(0.9)	(0.9)	(1.0)
Share issuance costs		(0.2)	0	0
Cash flows provided (used) by financing activities		34.9	18.9	60.9
Cash and cash equivalents, increase (decrease) in the period		(12.5)	(70.3)	12.3
Cash and cash equivalents, beginning of period	12.6	25.1	95.4	83.1
Cash and cash equivalents, end of period 1		12.6	25.1	95.4
Supplemental disclosures:
Income taxes paid (recovered)		(0.2)	0.1	0.4
Net interest paid		11.7	72.6	72.7
Common stock issued under stock option compensation plan		0	0.2	0
Non-cash exchange of 8.625% senior notes		0	0	(327.1)
Non-cash issuance of 11.0% senior notes		0	0	287.2
Non-cash difference in carrying value of senior notes on modification		0	0	39.9
1 Cash and cash equivalents included in assets held for sale		0.4	0	0

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CONSOLIDATED BALANCE SHEETS [Parenthetical]	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011 Predecessor [Member]
Common stock, issued	14,527,571	14,400,000	381,900,450
Common stock, outstanding	14,527,571	14,400,000	381,900,450
Preferred stock, authorized	100,000,000	100,000,000	100,000,000
Preferred stock, issued	0	0	0
Preferred stock, outstanding	0	0	0

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ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2012

Disclosure Of Assets Held For Sale [Abstract]

Assets Held-For-Sale and Discontinued Operations, Disclosure [Text Block]

9. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

Closure and Sale of Snowflake Mill

On January 30, 2013 the company completed the U.S. Court approved sale of the assets of the Snowflake facility and the shares of Apache Railway to an acquisition vehicle organized by Hackman Capital and its affiliates for US$13.5 million and other non-monetary consideration. The assets of the Snowflake facility that were sold included approximately 19,000 acres of land, equipment and other assets associated with the paper mill. The mill, which is located in northeastern Arizona, was permanently shut on September 30, 2012. The decision to close the mill was driven by continued financial losses resulting from intense supply input and market pressures. The closure resulted in impairment and other closure costs of $19.7 million in 2012 for, among other things, severance, environmental obligations, and inventory write-offs. Closure costs also included an estimated withdrawal liability of US$11.7 million due to the PACE Industry Union-Management Pension Fund, a multi-employer pension plan the company contributed to on behalf of hourly employees at the Snowflake mill. The company had accrued US$3.5 million in the third quarter for this withdrawal liability, which reflected the most recent estimate of this liability based on the plan’s funding deficit as of December 31, 2008. The company received a new liability estimate of US$11.7 million in the fourth quarter from the United Steelworkers (USW). The company is in the process of verifying the actuarial information used to calculate this estimated withdrawal liability. The Snowflake mill was a component of the company that was held for sale on September 30, 2012 and, therefore, it was reported as a discontinued operation.

Other assets held for sale

The agreement that had been reached with Pacifica Deep Sea Terminals Inc. to sell the Elk Falls site was terminated in December 2012. A non-refundable prepayment of a portion of the purchase price was received and the transaction timeline was extended multiple times up to the ultimate deadline of December 18, 2012. The company continues to actively market the Elk Falls property.

The company has reached an agreement-in-principle to sell its 13.4 hectare wastewater treatment facility located at its Port Alberni mill along with 3.9 hectares of land combined with a road dedication for proceeds of $5.8 million. The company will settle the mortgage receivable from PRSC Limited Partnership and sell its interest in PRSC Land Developments Ltd. for proceeds of approximately $3.0 million. The company continues to actively market its remaining poplar plantation land. All of these assets and associated liabilities were reported as held for sale in the consolidated balance sheets as of December 31, 2012 and September 30, 2012 and the company expects to complete sales transactions in respect of these assets within 12 months of the balance sheet date of December 31, 2012.

A summary of major classes of assets and liabilities classified as held for sale is as follows:

	Successor
	December 31, 2012		September 30, 2012
Cash and cash equivalents	$	1.9	$	0.4
Restricted cash		2.3		2.7
Accounts receivable		0.5		17.1
Inventories		0.6		5.4
Prepaids and other		–		0.5
Property, plant and equipment		24.7		25.8
Other assets		4.3		4.3
Assets held for sale		34.3		56.2
Accounts payable and accrued liabilities		15.2		14.8
Liabilities associated with assets held for sale	$	15.2	$	14.8

As disclosed previously, the operations of the Snowflake mill were classified as a discontinued operation. A breakdown of loss from discontinued operations, net of tax is as follows:

	Successor			Predecessor
	Three months ended			Nine months ended			Years ended
	December 31			September 30			December 31
	2012			2012			2011			2010
Sales	$	4.5		$	142.8		$	181.8		$	177.2
Cost of sales, excluding depreciation and amortization		(5.0	)		(142.4	)		(202.9	)		(183.5	)
Depreciation and amortization		–			–			(7.0	)		(9.6	)
Impairment, severances and other closure costs		(11.0	)		(8.7	)		(161.8	)		–
Restructuring costs		(1.1	)		–			–			–
Interest expense, net		–			(0.1	)		(0.2	)		(0.1	)
Other income (expense), net		0.7			–			(4.4	)		–
Reorganization items, net (note 6)		(1.0	)		4.8			–			–
Income tax expense		–			–			(1.0	)		(3.5	)
Loss from discontinued operations, net of tax	$	(12.9	)	$	(3.6	)	$	(195.5	)	$	(19.5	)

The following tables provide the components of impairment, severances and other closure costs for the three months ended December 31, 2012 and the nine months ended September 30, 2012:

	Three months ended December 31 2012 (successor)
	Amount
Severances and other closure costs
Severances	$	1.6
Withdrawal liability from multi-employer plan		8.2
Other closure costs		1.2
	$	11.0

	Nine months ended September 30 2012 (predecessor)
	Amount
Impairment
Operating and maintenance supplies and spare parts	$	0.5
Raw materials		0.6
		1.1
Severances and other closure costs
Severances		3.2
Withdrawal liability from multi-employer plan		3.4
Other closure costs		1.0
	$	8.7

Subsequent to the closure of the Snowflake mill, the company recognized an impairment charge to reduce the book value of remaining inventory to the estimated salvage value. In addition to severance, the company recognized obligations related to environmental remediation, dismantlement and other closure costs.

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ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]	Dec. 31, 2008 Predecessor [Member]
Trade payables	54.4	50.9	81.7
Accrued payroll and related liabilities	23.6	21.8	32.7
Accrued interest	11.7	5.6	33.2
Accrued benefit obligation - pension plan (note 19)	7.4	7.3	6.9
Accrued benefit obligation - other employee future benefit plans (note 19)	5.8	5.3	6.8
Property taxes, including taxes in arrears, interest and related parties	0	0	0.7
Restructuring (note 24)	0.3	0.4	1.2
Lease obligation - paper recycling - current portion	0	0	2.3
Payables related to capital projects	3.9	0.9	3.7
Other	6.7	5.3	5.3
Accounts Payable and Accrued Liabilities, Current	113.80	97.50	174.50	171.60	173.30	269.40

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ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (Details 2) (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Severances and other closure costs
Loss from discontinued operations net of tax	11.00	8.70	161.80
Snowflake Mill [Member]
Severances and other closure costs
Severances	1.6
Withdrawal Liability From Multi Employer Plan	8.2
Other closure costs	1.2
Loss from discontinued operations net of tax	11.00
Snowflake Mill [Member] | Predecessor [Member]
Impairment, Net
Operating and maintenance supplies and spare parts		0.5
Raw materials		0.6
Impairment Charges Discontinued Operations		1.1
Severances and other closure costs
Severances		3.2
Withdrawal Liability From Multi Employer Plan		3.4
Other closure costs		1.0
Loss from discontinued operations net of tax	(8.70)	(8.70)	(161.80)	0

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ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (Details) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012
Cash and cash equivalents	1.9	0.4
Restricted cash	2.3	2.7
Accounts receivable	0.5	17.1
Inventories	0.6	5.4
Prepaids and other	0	0.5
Property, plant and equipment	24.7	25.8
Other assets	4.3	4.3
Assets held for sale	34.3	56.2
Accounts payable and accrued liabilities	15.2	14.8
Liabilities associated with assets held for sale	15.2	14.8

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OTHER LONG-TERM OBLIGATIONS (Details 2) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2012 Other Long Term Obligation [Member]	Sep. 30, 2012 Other Long Term Obligation [Member]	Dec. 31, 2012 Accounts Payable and Accrued Liabilities [Member]	Sep. 30, 2012 Accounts Payable and Accrued Liabilities [Member]	Sep. 30, 2012 Predecessor [Member]	Dec. 31, 2011 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2011 Predecessor [Member] Other Long Term Obligation [Member]	Dec. 31, 2011 Predecessor [Member] Accounts Payable and Accrued Liabilities [Member]
Asset Retirement Obligation	6.1	6.2	5.8	5.9	0.3	0.3	6.2	8.5	7.9	8.0	0.5

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Details Textual) (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011 Predecessor [Member]
Non Taxable Translation Gain Included In Accumulated Net Adjustment	0	0	2.3
Gain (Loss) On Revaluation Of Long Term Debt Net Of Tax	0	0	1.6
Gain (Loss) On Revaluation Of Long Term Debt Tax	0	0	0

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FAIR VALUE MEASUREMENT (Details 2) (Interest Rate Swap [Member], Interest Expense [Member], CAD) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2012		Sep. 30, 2012 Predecessor [Member]		Dec. 31, 2011 Predecessor [Member]
Interest rate swaps	0	[1]	0.4	[1]	0.8	[1]

[1] The portion of the gain (loss) that relates to the foreign exchange portion of the contract is included in Foreign exchange gain (loss) on long-term debt and is equal to $nil for December 31, 2012 (2011 $nil).

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EMPLOYEE FUTURE BENEFITS (Details Textual) In Millions, unless otherwise specified	1 Months Ended	3 Months Ended	12 Months Ended				12 Months Ended												9 Months Ended	12 Months Ended
	Jul. 31, 2011 USD ($)	Dec. 31, 2012 CAD	Dec. 31, 2012 CAD	Dec. 31, 2010 CAD	Sep. 30, 2012 CAD	Dec. 31, 2011 CAD	Dec. 31, 2012 Green Status [Member]	Dec. 31, 2012 Yellow Status [Member]	Dec. 31, 2012 Red Status [Member]	Dec. 31, 2010 Pulp and Paper Industry Pension Plan [Member] CAD	Dec. 31, 2012 Pension Plans, Defined Benefit [Member] CAD	Sep. 30, 2012 Pension Plans, Defined Benefit [Member] CAD	Dec. 31, 2012 Funded Defined Benefit Pension Plans [Member] CAD	Sep. 30, 2012 Funded Defined Benefit Pension Plans [Member] CAD	Dec. 31, 2012 Unfunded Defined Benefit Pension Plans [Member] CAD	Sep. 30, 2012 Unfunded Defined Benefit Pension Plans [Member] CAD	Dec. 31, 2012 Other Benefit Plans [Member] CAD	Sep. 30, 2012 Other Benefit Plans [Member] CAD	Sep. 30, 2012 Predecessor [Member]	Dec. 31, 2011 Predecessor [Member]	Dec. 31, 2011 Predecessor [Member] Pension Plans, Defined Benefit [Member] CAD	Dec. 31, 2011 Predecessor [Member] Funded Defined Benefit Pension Plans [Member] CAD	Dec. 31, 2011 Predecessor [Member] Unfunded Defined Benefit Pension Plans [Member] CAD	Dec. 31, 2011 Predecessor [Member] Other Benefit Plans [Member] CAD	Dec. 31, 2012 Snowflake Mill [Member] USD ($)	Dec. 31, 2008 Snowflake Mill [Member] USD ($)
Reduction In Benefit Obligation Resulting From Plan Changes				21.3
Defined Benefit Plan, Curtailments				9.70
Funded status		149.20	149.20		(162.00)	(156.90)					(153.50)	(162.00)	83.30	90.30	70.20	71.70	(149.20)	(150.80)			156.90	86.90	70.00	162.30
Cash Contribution To Multi Employer Plan																	38.80							42.30
Defined Benefit Pension Plan Contribution For Closure Of Sales	5.1
Defined Benefit Plan Fund Performance Description			Fund performance is benchmarked against a customized index consisting of: 35% S&P/TSX Capped Composite Total Return Index, 25% Morgan Stanley Capital International World (Developed Markets) Index excluding Canada, 35% DEX Universe Bond Index and 5% DEX 30-Day T-Bill Index.
Multiemployer Plans, Funded Status							At least 80 percent	Between 65 and less than 80 percent	Less than 65 percent
Minimum Percentage Of Total Employer Contributions To Pension Plan			5.00%
Minimum Percentage Of Total Employer Contributions To Union Management Pension Fund			5.00%
Closure Reduced In Pension Contributions Plan										4.50
Expected rate of return on plan assets		6.50%																	6.75%	7.00%
Rate Of Canadian Universe Bonds		20.00%
Rate Of Expected To Earn In Long Term From Canadian Universe Bonds		3.40%
Rate Of Canadian Long Bonds		20.00%
Rate Of Expected To Earn In Long Term From Canadian Long Bonds		3.30%
Rate Of Canadian Equity Securities		18.00%
Rate Of Expected To Earn In Long Term From Canadian Equity Securities		8.00%
Rate Of Canadian Global Securities		37.00%
Rate Of Expected To Earn In Long Term From Canadian Global Securities		8.40%
Rate Of Expected Rate Of Return On Plan Assets In Recognition Of Additional Net Returns		0.40%
Percentage Of Non Investment Expenses Expected To Be Paid From Plans		0.30%
Rate Of Canadian Real Estate			5.00%
Rate Of Expected To Earn In Long Term From Canadian Real Estate			7.50%
Accrued Employee Benefits, Current					24.8
Elections Percentage For Membership		42.00%	42.00%
Multiemployer Plans, Withdrawal Obligation																									11.7	3.5
Elections Percentage For Solvency Liability		48.00%	48.00%
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year											22.7						6.0

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DOCUMENT AND ENTITY INFORMATION	12 Months Ended
	Dec. 31, 2012
Entity Registrant Name	CATALYST PAPER CORP
Entity Central Index Key	0001144906
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Trading Symbol	ctlfq
Entity Common Stock, Shares Outstanding	14,527,571
Document Type	20-F
Amendment Flag	false
Document Period End Date	Dec. 31, 2012
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2012
Entity Well-Known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

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INCOME TAXES (Details 2) (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009	Dec. 31, 2008
Income tax recovery at Canadian statutory income tax rates	(9.1)
Increase (decrease) in income taxes for:
Non-taxable income and expenses	(1.8)
Difference in foreign tax rate	(0.5)
Release of deferred income taxes related to reduction in corporate income tax rates	0
Change in the deferred income tax estimate	0
Change in valuation allowance	11.9
Adjustment to deferred credits	0
Other	(0.3)
Income tax expense (recovery)	0.2
Income tax recovery at Canadian statutory income tax rates	25.00%
Increase (decrease) in income taxes for:
Non-taxable income and expenses	5.00%
Difference in foreign tax rate	1.30%
Release of deferred income taxes related to reduction in corporate income tax rates	0.00%
Change in the deferred income tax estimate	0.00%
Change in valuation allowance	(32.70%)
Adjustment to deferred credits	0.00%
Other	0.90%
Income tax expense (recovery)	(0.50%)
Predecessor [Member]
Income tax recovery at Canadian statutory income tax rates		162.3	(260.8)		(118.2)
Increase (decrease) in income taxes for:
Non-taxable income and expenses		7.4	2.0		(3.2)
Difference in foreign tax rate		(1.0)	(25.4)		(4.3)
Release of deferred income taxes related to reduction in corporate income tax rates		0	11.3		13.8
Change in the deferred income tax estimate		0	(0.6)		0.3
Change in valuation allowance		(164.9)	265.7		98.3
Adjustment to deferred credits		(9.6)	0		(5.9)
Other		4.7	0.4		2.9
Income tax expense (recovery)		(1.1)	(8.4)	[1]	(19.8)	[2]	(23.1)	(90.7)
Income tax recovery at Canadian statutory income tax rates		25.00%	26.50%		28.50%
Increase (decrease) in income taxes for:
Non-taxable income and expenses		1.10%	(0.20%)		0.80%
Difference in foreign tax rate		(0.10%)	2.50%		1.00%
Release of deferred income taxes related to reduction in corporate income tax rates		0.00%	(1.10%)		(3.30%)
Change in the deferred income tax estimate		0.00%	0.10%		(0.10%)
Change in valuation allowance		(25.40%)	(27.00%)		(23.70%)
Adjustment to deferred credits		(1.50%)	0.00%		1.40%
Other		0.70%	0.00%		(0.70%)
Income tax expense (recovery)		(0.20%)	0.80%		3.90%

[1] Included $8.4 million income tax recovery related to continuing operations and $1.0 million income tax expense related to discontinued operations

[2] Included $19.8 million income tax recovery related to continuing operations and $3.5 million income tax expense related to discontinued operations

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RESTRICTED CASH

12 Months Ended

Dec. 31, 2012

Cash and Cash Equivalents [Abstract]

Restricted Cash Disclosue [Text Block]

10. RESTRICTED CASH

Restricted cash includes $0.2 million collateral held against letters of credit. Cash collateral is held at a rate of 105% of letters of credit. These letters of credit were recognized under the former ABL Facility in effect prior to the CCAA proceedings, but are not presently recognized in the calculation of the available balance under the new ABL Facility. Restricted cash also includes $0.5 million cash held in trust pending the outcome of an arbitration case.

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CREDITOR PROTECTION PROCEEDINGS RELATED DISCLOSURES (Details 3) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012
Equity value of the Successor company	144.9	144.9
Plan Of Arrangement Adjustments [Member]
Enterprise value		392.9
Net redundant assets		117.3
Interest bearing debt		(351.8)
Other adjustments		(13.5)
Equity value of the Successor company		144.9

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VARIABLE INTEREST ENTITIES (Details Textual) (CAD) In Millions, unless otherwise specified				12 Months Ended	3 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2012 Powell River Energy Inc [Member]	Dec. 31, 2012 Prei [Member]	Dec. 31, 2012 Prei [Member]
Variable Interest Entity, Methodology for Determining Whether Entity is Primary Beneficiary				The company has a 50.001% interest in PREI and consolidates 100% of it as PREI is a VIE in which the company is the primary beneficiary. PREI consists of an integrated hydroelectric power generating, transmission and distribution system which includes two hydroelectric stations in B.C. with installed capacity of 83 megawatts. The company purchases 100% of the power generated by PREI.
Percentage Of Net Proceeds				50.00%
Percentage Of Comprehensive Income (Loss) In Minority Interest				50.00%
Mortgage Loans on Real Estate, Face Amount of Mortgages	3.00	3.40	4.80
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage				50.00%
Proceeds from Sale of Interest in Corporate Unit					33.0	33.0

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CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (CAD) In Millions, except Per Share data, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011		Dec. 31, 2010
Sales	260.50
Operating expenses
Cost of sales, excluding depreciation and amortization	245.6
Depreciation and amortization	12.9
Selling, general and administrative	7.7
Restructuring (note 24)	0
Impairment and other closure costs (note 7)	8.2		661.8		294.5
Costs and Expenses	266.2
Operating earnings (loss)	(5.7)
Interest expense, net (note 25)	(11.6)
Foreign exchange gain (loss) on long-term debt	(3.2)
Other income (expense), net (note 26)	0.1
Loss before reorganization items and income taxes	(20.4)
Reorganization items, net (note 6)	(3.2)
Income (loss) before income taxes	(23.6)
Income tax expense (recovery) (note 21)	0.2
Earnings (loss) from continuing operations	(23.8)
Loss from discontinued operations net of tax (note 9)	(12.9)
Net earnings (loss)	(36.7)
Net (earnings) loss attributable to non-controlling interest (note 8)	1.5
Net earnings (loss) attributable to the company	(35.2)
Basic and diluted net earnings (loss) per share from continuing operations attributable to the company's common shareholders (note 27) (in dollars per share)	(1.55)	1.63	(2.04)		(0.99)
Basic and diluted net loss per share from discontinued operations attributable to the company's common shareholders (in dollars per share)	(0.89)	(0.01)	(0.51)		(0.05)
Weighted average number of the company's common shares outstanding (in shares)	14.4	381.9	381.9		381.8
Predecessor [Member]
Sales		797.70	1,079.70		1,051.40
Operating expenses
Cost of sales, excluding depreciation and amortization		718.0	970.7		930.1
Depreciation and amortization		23.4	112.4		119.3
Selling, general and administrative		26.2	40.3		43.4
Restructuring (note 24)		5.3	5.9		25.3
Impairment and other closure costs (note 7)		3.3	823.6		294.5
Costs and Expenses		772.9	1,784.2		1,403.0
Operating earnings (loss)		24.8	(704.5)		(351.6)
Interest expense, net (note 25)		(60.3)	(73.2)		(71.9)
Foreign exchange gain (loss) on long-term debt		24.0	(9.7)		27.6
Other income (expense), net (note 26)		(2.6)	(2.1)		(2.6)
Loss before reorganization items and income taxes		(14.1)	(789.5)		(398.5)
Reorganization items, net (note 6)		666.9	0		0
Income (loss) before income taxes		652.8	(789.5)		(398.5)
Income tax expense (recovery) (note 21)		(1.1)	(8.4)	[1]	(19.8)	[2]
Earnings (loss) from continuing operations		653.9	(781.1)		(378.7)
Loss from discontinued operations net of tax (note 9)		(3.6)	(195.5)		(19.5)
Net earnings (loss)		650.3	(976.6)		(398.2)
Net (earnings) loss attributable to non-controlling interest (note 8)		(31.9)	2.6		1.3
Net earnings (loss) attributable to the company		618.4	(974.0)		(396.9)
Basic and diluted net earnings (loss) per share from continuing operations attributable to the company's common shareholders (note 27) (in dollars per share)		1.63	(2.04)		(0.99)
Basic and diluted net loss per share from discontinued operations attributable to the company's common shareholders (in dollars per share)		(0.01)	(0.51)		(0.05)
Weighted average number of the company's common shares outstanding (in shares)		381.9	381.9		381.8

[1] Included $8.4 million income tax recovery related to continuing operations and $1.0 million income tax expense related to discontinued operations

[2] Included $19.8 million income tax recovery related to continuing operations and $3.5 million income tax expense related to discontinued operations

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RECENTLY IMPLEMENTED ACCOUNTING STANDARDS

12 Months Ended

Dec. 31, 2012

Accounting Changes and Error Corrections [Abstract]

Accounting Changes and Error Corrections [Text Block]

4. RECENTLY IMPLEMENTED ACCOUNTING STANDARDS

FASB ASC 852, Reorganizations, was adopted for the duration of the CCAA proceedings. In accordance with this standard, transactions and events directly associated with the reorganization were distinguished and segregated from the ongoing operations of the business. Pre-petition obligations that were impaired under the reorganization process pursuant to the CCAA proceedings were classified as Liabilities subject to compromise in the balance sheet at the amounts expected to be allowed as claims by the Court. Professional fees, DIP-related financing costs, charges related to indefinite idlings and permanent closures and other provisions for losses directly associated with or resulting from the reorganization were recorded in Reorganization items, net in the consolidated statement of operations.

In accordance with FASB ASC 852, Reorganizations, fresh start accounting was applied as of the convenience date of September 30, 2012. See note 6, Creditor protection proceedings related disclosures, for a discussion of fresh start accounting.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The consolidated financial statements of the company are prepared in accordance with United States (U.S.) generally accepted accounting principles (U.S. GAAP).

(a) Basis of consolidation

The consolidated financial statements include the accounts of the company and, from their respective dates of acquisition of control or formation, its wholly-owned subsidiaries and partnerships. In addition, the consolidated financial statements include the accounts of the company’s joint venture, Powell River Energy Inc. (PREI), a variable interest entity. All inter-company transactions and amounts have been eliminated on consolidation.

(b) Variable interest entities

Variable interest entities (VIE) are entities in which equity investors do not have a controlling financial interest or the equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by other parties. The company consolidates the accounts of VIEs where it has been determined that the company is the primary beneficiary, defined as the party that has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and has an obligation to absorb losses and receive benefits of that VIE.

(c) Use of estimates

The consolidated financial statements have been prepared in conformity with U.S. GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. On an ongoing basis, management reviews its estimates, including those related to inventory obsolescence, estimated useful lives of assets, environmental and legal liabilities, impairment of long-lived assets, derivative financial instruments, pension and post-retirement benefits, bad debt and doubtful accounts, income taxes, restructuring costs, and commitment and contingencies, based on currently available information.

The enterprise value that was established as of the valuation date of September 30, 2012 incorporated numerous major assumptions including, but not limited to, the following:

§ management’s best estimate of future operating performance as of the valuation date,

§ internal forecasts and external forecasts based on published reports of future exchange rates and product prices,

§ a discount rate of 15% based on the estimated blended rate of return required by debt and equity investors of the company,

§ the corporate income tax rate of approximately 25% represents an appropriate rate to apply to future earnings of the company, based on current and projected federal and provincial tax rates,

§ a capital cost allowance (CCA) rate of 20% represents an appropriate depreciation rate to apply to capital assets in future periods,

Actual amounts could differ from estimates.

(d) Revenue recognition

The company recognizes revenues upon shipment when persuasive evidence of an arrangement exists, prices are fixed or determinable, title of ownership has transferred to the customer and collection is reasonably assured. Sales are reported net of discounts, allowances and rebates.

(e) Shipping and handling costs

The company classifies shipping and handling costs to Cost of sales, excluding depreciation and amortization as incurred.

(f) Translation of foreign currencies

The majority of the company’s sales are denominated in foreign currencies, principally U.S. dollars (US$). Revenue and expense items denominated in foreign currencies are translated at exchange rates prevailing during the period. Monetary assets and liabilities denominated in foreign currencies are translated at the period-end exchange rates. Non-monetary assets and liabilities are translated at exchange rates in effect when the assets are acquired or the obligations are incurred. Foreign exchange gains and losses are reflected in net earnings (loss) for the period.

Up to September 30, 2012, the company had a foreign subsidiary that was considered to be self-contained and integrated within its foreign jurisdiction, and accordingly, used the U.S. dollar as its functional currency. Foreign exchange gains and losses arising from the translation of the foreign subsidiary’s accounts into Canadian dollars (CDN$) were reported as a component of other comprehensive income (loss), as discussed in note 23, Accumulated other comprehensive income (loss). Subsequent to the permanent closure of the Snowflake recycle mill operations on September 30, 2012, the company ceased to have a self-contained foreign operation and therefore no longer reports foreign exchange gains and losses as a component of other comprehensive income (loss).

(g) Derivative financial instruments

The company uses derivative financial instruments in the management of foreign currency and price risk associated with its revenues, energy costs and long-term debt. It also uses interest rate swaps to manage its net exposure to interest rate changes.  The company’s policy is to use derivatives for managing existing financial exposures and not for trading or speculative purposes. The company accounts for its derivatives at fair value at each balance sheet date.

In a cash flow hedge, the changes in fair value of derivative financial instruments are recorded in Other comprehensive loss. These amounts are reclassified in the consolidated statement of earnings (loss) in the periods in which results are affected by the cash flows of the hedged item. Any hedge ineffectiveness is recorded in the consolidated statement of earnings (loss) when incurred. In a fair value hedge, hedging instruments are carried at fair value, with changes in fair value recognized in the consolidated statement of earnings (loss).  The changes in fair value of the hedged item attributable to the hedged risk is also recorded in the consolidated statement of earnings (loss) by way of a corresponding adjustment of the carrying amount of the hedged items recognized on the balance sheet. In hedges of the foreign currency exposure of net investments in foreign subsidiaries that are self-contained and integrated within a particular country, gains and losses on translation are deferred in a separate component of shareholders’ equity to be recognized in net earnings (loss) upon sale or upon complete or substantially complete liquidation of the net investment in the foreign subsidiary. Cash flows from derivative financial instruments are classified, in general, to “Operations” on the consolidated statement of cash flows consistent with the hedged transaction.  Cash flows resulting from termination of interest rate swaps are classified as “Investing activities.”

Effective April 1, 2010, the company no longer designates its U.S. dollar revenue risk management instruments as cash flow hedges for accounting purposes. The effective portion of gains or losses accumulated as at March 31, 2010 on its previously designated U.S. dollar revenue risk management instruments were recorded in the same income statement line items as the hedged item in Sales. Prior to April 1, 2010, the company designated the hedge relationship and formally documented, at its inception, the particular risk management objective and strategy, the specific asset, liability or cash flow being hedged, as well as how effectiveness was assessed.  Risk management strategies and relationships were assessed on an ongoing basis to ensure each derivative instrument was effective in accomplishing the objective of offsetting either changes in the fair value or cash flow attributable to the exposure being hedged both at inception and over the term of the hedging relationship.

Effective October 1, 2011, the company no longer designates the foreign currency revaluation of a portion of its long-term debt as a hedge against the foreign currency exposure arising on the net investment in its foreign subsidiary. As described in note 7, Measurement uncertainty – impairment of long-lived assets, certain assets of the foreign subsidiary were impaired on September 30, 2011. Subsequent to the recognition of this impairment, the revaluation of the company’s foreign currency denominated debt was no longer an effective hedge against the foreign exchange gains and losses that arose on the net investment in the company’s foreign subsidiary. Subsequent to the permanent closure of the Snowflake recycle mill operations on September 30, 2012 the company ceased to have a self-contained foreign operation.

(h) Cash and cash equivalents

Cash and cash equivalents include cash and short-term investments with original maturities of less than three months when acquired and are presented at fair value.

(i) Restricted cash

Restricted cash is segregated and presented separately in the balance sheet, classified as current or non-current based on the facts pertaining to the restricted cash, and is excluded from cash and cash equivalents in the statement of cash flows.

(j) Inventories

Specialty printing papers, newsprint and pulp inventories are valued at the lower of three-month moving average cost or market. Wood chips, pulp logs and other raw materials are valued at the lower of cost or market. For raw materials to be used in the production of finished goods, market is determined on an as-converted-to-finished-goods basis. Work-in-progress and operating and maintenance supplies and spare parts inventories are valued at cost. Cost is defined as all costs that relate to bringing the inventory to its present condition and location under normal operating conditions and includes manufacturing costs, such as raw materials, labour and production overhead, and depreciation and amortization costs. In addition, cost includes freight costs to move inventory offsite.

(k) Repairs and maintenance costs

Repairs and maintenance, including costs associated with planned major maintenance, are charged to Cost of sales, excluding depreciation and amortization as incurred.

(l) Property, plant and equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and amortization, including asset impairment charges. Interest costs for capital projects are capitalized. Buildings, machinery and equipment are generally amortized on a straight-line basis at rates that reflect estimates of the economic lives of the assets. The rates for major classes of assets based on the estimated remaining economic lives are:

Buildings	2.5% − 5.0%
Paper machinery and equipment	5.0% – 10.0%
Pulp machinery and equipment	5.0% – 10.0%

Effective December 31, 2011, the remaining useful lives of the company’s pulp machinery were revised from approximately 7 years to 11 years. The company concluded that, based on the physical condition of these assets, 11 years more fairly reflected the remaining useful lives of these assets and adopted these change in estimate prospectively.

No depreciation is charged on capital projects during the period of construction. Start-up costs incurred in achieving normal operating capacity on major capital projects are expensed as incurred.

Leasehold improvements are normally amortized over the lesser of their expected average service life and the term of the lease.

When property, plant and equipment are sold by the company, the historical cost less accumulated depreciation and amortization is netted against the sale proceeds and the difference is included in Other income (expense), net.

(m) Assets Held For Sale and Discontinued Operations

Assets and liabilities that meet the held-for-sale criteria are reported separately from continuing operations in the consolidated balance sheet. Assets held for sale and liabilities associated with assets held for sale are reported separately under current assets and current liabilities, and are not offset and reported as a single amount in the consolidated balance sheet. Assets and liabilities are classified prospectively in the consolidated balance sheet as held for sale. 

The results of discontinued operations, net of tax, are presented separately from the results of continuing operations in the consolidated statements of earnings (loss). Per share information and changes to other comprehensive income (loss) related to discontinued operations are presented separately from continuing operations. Cash flows from discontinued operations are not presented separately from cash flows from continuing operations in the consolidated statements of cash flows. All comparative periods are restated in the period that a component is classified as a discontinued operation.

(n) Goodwill

Goodwill is measured at the amount that the company’s enterprise value exceeded the fair value of its identified assets and liabilities on the convenience date of September 30, 2012, that fresh start accounting was applied.

(o) Government grants

Government grants are recognized at fair value when there is reasonable assurance that the company will comply with the conditions attached to them and that the grants will be received. Government grants related to additions or betterments to property, plant and equipment are recognized as credits against the carrying values of the related assets, and subsequently recognized in net earnings (loss) over the useful lives of the related assets as reductions to the resulting depreciation expense.

Government grants were awarded to the company by the Canadian Forest Service (CFS) to invest in specified capital upgrades to property, plant and equipment. These government grants, called Green Transformation Credits, were awarded in accordance with CFS’s Pulp and Paper Green Transformation Program.

(p) Impairment of long-lived assets

Long-lived assets are tested for recoverability when events or changes in circumstances indicate their carrying value may not be recoverable. A long-lived asset is potentially not recoverable when its carrying value is greater than the sum of the undiscounted cash flows expected to result from its use and eventual disposition. The impairment loss, if any, is measured as the amount by which the long-lived asset’s carrying amount exceeds its fair value.

Goodwill will not be amortized in subsequent periods, but will be tested for impairment using a two-step impairment test at the reporting unit level. The first step of the goodwill impairment test, used to identify potential impairment, compares the fair value of a reporting unit with its carrying amount, including goodwill. The second step of the goodwill impairment test, used to measure the amount of impairment loss, compares the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. A company may first assess certain prescribed qualitative factors to determine whether it is necessary to perform the two-step goodwill impairment test.

(q) Environmental costs

Environmental expenditures are expensed or capitalized depending upon their future economic benefit. Expenditures that prevent future environmental contamination are capitalized as part of Property, plant and equipment, and depreciation and amortization is subsequently charged to earnings over the estimated future benefit period of the assets. Expenditures that relate to an existing condition caused by past operations are expensed. Liabilities are recorded on a discounted basis when rehabilitation efforts are likely to occur and the costs can be reasonably estimated.

(r) Asset retirement obligations

Asset retirement obligations are recognized at fair value in the period in which the company incurs a legal obligation associated with the retirement of an asset. The associated costs are capitalized as part of the carrying value of the related asset and amortized over its remaining useful life. The liability is accreted using a credit-adjusted risk-free interest rate.

The company’s obligations for the proper removal and disposal of asbestos products in its mills meet the definition of a conditional asset retirement obligation. That is, the company is subject to regulations that are in place to ensure that asbestos fibres do not become friable, or loose. The regulations require that friable asbestos be repaired or removed in accordance with the regulations.

The company’s asbestos can generally be found on steam and condensate piping systems throughout its facilities, as well as in transite cladding on buildings and in building insulation. As a result of the longevity of the company’s mills, due in part to the company’s maintenance procedures, and the fact that the company does not have plans for major changes that would require the removal of asbestos, the timing of the removal of asbestos in the company’s mills is indeterminate. As a result, the company is currently unable to estimate the fair value of its asbestos removal and disposal obligation.

The company’s obligations to cover (cap) the surface areas of the landfills that are in operation at its mill sites meet the definition of an asset retirement obligation. Capping will prevent future environmental contamination when the landfills are no longer in active use. The company presently has active landfills at its Crofton, Powell River and Elk Falls mill sites.

(s) Deferred financing costs

Deferred costs related to the company’s long-term debt are included in Other assets and amortized over the legal life of the related liability. Financing costs associated with modifications of long-term debt are expensed as incurred. Financing costs associated with modifications to line-of-credit or revolving debt arrangements are deferred and amortized if the borrowing capacity of the new arrangement is greater than or equal to the borrowing capacity of the old arrangement and if the parties to the new arrangement are the same as the parties to the old arrangement. Borrowing capacity is defined as the product of the remaining term of the arrangement and the maximum available credit.

(t) Stock-based compensation and other stock-based payments

Stock options and restricted share units granted to the company’s key officers, directors and employees are accounted for using the fair value-based method. Under this method, compensation cost is measured at fair value at the date of grant, and is expensed over the award’s vesting period. Any consideration paid by plan participants on the exercise of share options or the purchase of shares is credited to Common stock together with any related stock-based compensation expense. Performance and time based share-based payments are amortized over their vesting periods when it is probable that the performance conditions will be satisfied.

Deferred share units are accounted for using the quoted market value at each reporting period until settlement, and are amortized over their vesting periods.

(u) Income taxes

Income taxes are accounted for using the asset and liability method. Deferred income tax assets and liabilities are based on temporary differences (differences between the accounting basis and the tax basis of the assets and liabilities) and non-capital loss carry-forwards and are measured using the enacted tax rates and laws expected to apply when these differences reverse. Future tax benefits, including non-capital loss carry-forwards, are recognized to the extent that realization of such benefits is considered more likely than not. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that enactment occurs.

(v) Deferred credits

Deferred credits represent the excess of amounts assigned to deferred income tax assets for tax losses acquired in other than business combinations over the consideration paid. Deferred credits are amortized to Income tax recovery in the consolidated statement of earnings (loss) during the period that the acquired tax asset is utilized.

(w) Employee future benefits

The company maintains pension benefit plans for all salaried employees, which include defined benefit and defined contribution segments. The company also sponsors other post-retirement benefit plans, covering health and dental benefits. The company recognizes assets or liabilities for the respective overfunded or underfunded statuses of its defined benefit pension plans and other post-retirement benefit plans on its consolidated balance sheet. Changes in the funding statuses that have not been recognized in the company’s net periodic benefit costs are reflected in Accumulated other comprehensive income (loss) in the company’s consolidated balance sheet. Net periodic benefit costs are recognized as employees render the services necessary to earn the pension and other post-retirement benefits.

The estimated cost for pensions and other employee future benefits provided to employees by the company is accrued using actuarial techniques and assumptions during the employees’ active years of service. The net periodic benefit cost includes:

- the cost of benefits provided in exchange for employees’ services rendered during the year;

- the interest cost of benefit obligations;

- the expected long-term return on plan assets based on the fair value for all asset classes;

- gains or losses on settlements or curtailments;

- the straight-line amortization of prior service costs and plan amendments included in accumulated other comprehensive income (AOCI) over the expected average remaining service lifetime (EARSL) of employees who are active as of the date such costs are first recognized, unless all, or almost all, of the employees are no longer active, in which case such costs are amortized over the average remaining life expectancy of the former employees; and

- the straight-line amortization of cumulative unrecognized net actuarial gains and losses in excess of 10% of the greater of the accrued benefit obligation and the fair value of plan assets at the beginning of the year over the EARSL of the active employees who are active as of the date such amounts are recognized, unless all, or almost all, of the employees are no longer active, in which case such costs are amortized over the average life expectancy of the former employees.

The defined benefit plan obligations are determined in accordance with the projected benefit method, prorated on services.

Amounts paid to the company’s defined contribution plans for salaried employees and to multi-employer industry-wide pension plans are expensed as incurred.

(x) Earnings (loss) per share

Basic earnings (loss) per share is computed by dividing net earnings (loss) attributable to the company for the period by the weighted average number of company common shares outstanding during the reporting period. Diluted earnings (loss) per share is computed using the treasury stock method. When the effect of options and other securities convertible into common shares is anti-dilutive, including when the company has incurred a loss for the period, basic and diluted loss per share are the same.

(y) Comparative figures

Comparative figures disclosed in the consolidated financial statements have been reclassified to conform to the presentation adopted for the current year.

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FAIR VALUE MEASUREMENT (Details) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011 Predecessor [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 2 [Member] Prepaids and Other [Member]		Sep. 30, 2012 Fair Value, Inputs, Level 2 [Member] Prepaids and Other [Member]		Dec. 31, 2011 Fair Value, Inputs, Level 2 [Member] Prepaids and Other [Member] Predecessor [Member]		Dec. 31, 2012 Fair Value, Inputs, Level 2 [Member] Other Assets [Member]		Sep. 30, 2012 Fair Value, Inputs, Level 2 [Member] Other Assets [Member]		Dec. 31, 2011 Fair Value, Inputs, Level 2 [Member] Other Assets [Member] Predecessor [Member]		Dec. 31, 2012 Fair Value, Inputs, Level 2 [Member] Accounts Payable and Accrued Liabilities [Member]		Sep. 30, 2012 Fair Value, Inputs, Level 2 [Member] Accounts Payable and Accrued Liabilities [Member]		Dec. 31, 2011 Fair Value, Inputs, Level 2 [Member] Accounts Payable and Accrued Liabilities [Member] Predecessor [Member]		Dec. 31, 2012 Fair Value, Inputs, Level 2 [Member] Other Long Term Obligations [Member]		Sep. 30, 2012 Fair Value, Inputs, Level 2 [Member] Other Long Term Obligations [Member]		Dec. 31, 2011 Fair Value, Inputs, Level 2 [Member] Other Long Term Obligations [Member] Predecessor [Member]
Assets
Currency contracts				0	[1]	0	[1]	2.0	[1]	0	[1]	0	[1]	2.5	[1]
Commodity contracts				0	[2]	0	[2]	0.5	[2]
Derivative Assets	0	0	5
Liabilities
Commodity contracts																0	[2]	0	[2]	0.4	[2]	0	[2]	0	[2]	0.2	[2]
Derivative Liabilities	0	0	0.6

[1] The fair value of forward currency contracts is measured using the discounted difference between contractual rates and market future rates. Interest rates, forward market rates, and volatility are used as inputs for such valuation techniques. The company incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the counterparty's non-performance risk in the fair value measurements.

[2] The fair value of commodity swap contracts is measured using the discounted difference between contractual rates and market rates. The fair value of natural gas commodity options is measured using techniques derived from the Black-Scholes pricing model. The company incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the counterparty's non-performance risk in the fair value measurements.

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GOODWILL

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

15. GOODWILL

Goodwill recorded by the company represents the excess of the enterprise value determined under fresh start accounting over the amount assigned to specific assets and liabilities of the company.  The amount represents the present value of the future economic benefits available to the company from tax attributes available in the company. The tax attributes consist primarily of the excess of tax basis over net book value of depreciable assets that have no expiration date.

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ACCOUNTS RECEIVABLE

12 Months Ended

Dec. 31, 2012

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

11. ACCOUNTS RECEIVABLE

The components of accounts receivable are as follows:

	Successor					Predecessor
	As at December 31			As at September 30		As at December 31
	2012			2012		2011
Trade receivables	$	94.7		$	121.9	$	115.1
Less:  allowance for doubtful accounts		(2.2	)		–		(2.0	)
		92.5			121.9		113.1
Sales taxes receivable		12.6			12.7		7.5
Pulp and Paper Green Transformation Program receivable		–			–		6.9
Other receivables		8.9			6.2		7.4
	$	114.0		$	140.8	$	134.9

Accounts receivable are pledged as collateral against the long-term debt of the company. See note 18, Long-term debt, for detailed disclosure of the collateral arrangements of the company.

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CREDITOR PROTECTION PROCEEDINGS RELATED DISCLOSURES (Details 7) (CAD) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Dec. 31, 2012		Sep. 30, 2012
DIP financing costs	0		(3.8)
Total	(3.2)
Fresh Start Accounting Adjustments [Member]
Professional fees	1.8	[1]	24.7	[1]
Gain due to plan of arrangement adjustments	1.4	[2]	(456.0)	[2]
Gain due to fresh start accounting adjustments	0	[3]	(328.3)	[3]
DIP financing costs	0	[4]	3.8	[4]
Acceleration of ABL financing costs	0	[5]	3.3	[5]
Provision for repudiated lease contract	0	[6]	7	[6]
Write-off of debt discount, modification and issuance costs	0	[7]	(11)	[7]
Adjustment to pre-petition accounts payable	0	[8]	(4.8)	[8]
Adjustment to other post-employment benefits	0		2.4
Provision for labour union claims	0	[9]	91.8	[9]
Other	0		0.2
Reorganization items, net from continuing operations	3.2		(666.9)
Gain due to plan of arrangement adjustments	1.0	[2]	(7.1)	[2]
Gain due to fresh start accounting adjustments	0	[3]	(0.1)	[3]
Adjustment to pre-petition accounts payable	0		(1.9)
Provision for repudiated coal contract	0	[6]	4.3	[6]
Reorganization items, net from discontinued operations	1.0		(4.8)
Total	4.2		(671.7)

[1] Professional fees directly related to the creditor protection proceedings, ongoing monitoring and establishment of a reorganization plan, including legal, consulting and other professional fees

[2] See discussion under Plan of arrangement adjustments above

[3] See discussion under Fresh start accounting adjustments above.

[4] DIP financing costs incurred in connection with entering into the DIP Credit Agreement, including commitment fees.

[5] Pursuant to the creditor protection proceedings the company's former ABL Facility was replaced by the DIP Credit Facility which resulted in the acceleration of the remaining deferred unamortized financing costs on the ABL Facility to the consolidated statements of earnings (loss).

[6] The company repudiated on a lease contract at its paper recycling operation which was closed in 2010, resulting in a $7.0 million adjustment to the allowed claims amount. The company repudiated on a coal contract at its Snowflake mill, discontinued on September 30, 2012, which resulted in adjustments for allowed claims of $4.3 million.

[7] The company's secured and unsecured pre-petition debt balances were adjusted to the allowed claims amounts, defined as the outstanding principal plus accrued and unpaid interest, which resulted in the write-off of the unamortized discount, modification and debt issue costs on the 2014 Notes and 2016 Notes.

[8] The company's pre-petition accounts payable were adjusted to the allowed claims amount.

[9] The labour unions at the company's Canadian mills submitted unsecured claims with respect to the June 25, 2012 creditor vote on the Plan. These claims were based on the estimated present value of the five-year wage and benefit reductions agreed to in the new labour agreements that went into effect on May 1, 2012. These claims, which were under dispute at the time of the approval of the Plan, were subsequently allowed by the Court, resulting in a provision for $91.8 million.

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MEASUREMENT UNCERTAINTY - IMPAIRMENT OF LONG-LIVED ASSETS

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

Asset Impairment Charges [Text Block]

7. MEASUREMENT UNCERTAINTY – IMPAIRMENT OF LONG-LIVED ASSETS

The company reviews its long-lived assets, primarily plant and equipment, for impairment when events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. The company tests for impairment using a two-step methodology as follows:

(i) determine whether the projected undiscounted future cash flows from operations exceed the net carrying amount of the assets as of the assessment date; and

(ii) if assets are determined to be impaired in step (i), then such impaired assets are written down to their fair value, determined principally by using discounted future cash flows expected from their use and eventual disposition.

Estimates of future cash flows and fair value require judgments, assumptions and estimates and may change over time. Due to the variables associated with judgments and assumptions used in these tests, the precision and accuracy of estimates of impairment charges are subject to significant uncertainties and may change significantly as additional information becomes known. The carrying value of long-lived assets represented approximately 68% of total assets as at December 31, 2012. If future developments were to differ adversely from management’s best estimate of key assumptions and associated cash flows, the company could potentially experience future material impairment charges.

2012

The company did not identify any impairment indicators related to its continuing operations subsequent to establishing an enterprise value and applying fresh start accounting as of September 30, 2012 and therefore did not conduct an impairment test as of December 31, 2012.

For its discontinued operations the company recognized impairment, severance and other closure costs of $11.0 million for the three months ended December 31, 2012 and $8.7 million for the nine months ended September 30, 2012, as disclosed in note 9, Assets held for sale and discontinued operations.

2011

The company recorded impairment and other closure costs of $823.6 million in 2011, consisting of an impairment charge of $660.2 million on the assets of its Canadian operations, $161.8 million on the assets of its Snowflake mill, net closure costs of $0.5 million related to the company’s discontinued paper recycling operation and $1.1 million related to a revised estimate for future landfill rehabilitation cost in respect of the landfill located at the company’s discontinued Elk Falls mill.

The following table provides the components of the impairment and other closure costs:

Buildings, plant and equipment	$	801.1
Land		10.8
Operating and maintenance supplies and spare parts inventory		10.1
		822.0
Other closure costs – operating lease at paper recycling operation		0.5
Other closure costs – Elk Falls landfill rehabilitation estimate		1.1
Total	$	823.6
Classification in consolidated statement of earnings (loss):
Impairment and other closure costs	$	661.8
Loss from discontinued operations net of tax		161.8
	$	823.6

Continuing operations

In respect of the company’s Canadian operations, impairment of $660.2 million was recorded on December 31, 2011 on buildings, plant and equipment. During the fourth quarter of 2011, continuing declines in current and forecast prices for newsprint, directory markets and pulp indicated a probable impairment of the Canadian operations. Two asset groups were identified for the purpose of the impairment analysis; pulp assets and paper assets. Paper assets in aggregate were treated as one asset group as the company’s paper machines are capable of running various grades and can be reconfigured to switch from one paper production such as newsprint to directory or specialty.

The company conducted step (i) of the impairment test to determine whether the carrying value of the assets of its Canadian operations were recoverable. Estimates of future cash flows used to test the recoverability of long-lived assets included key assumptions related to foreign exchange rates, forecast product prices, market supply and demand, estimated useful life of the long-lived assets, production levels, production costs, inflation, weighted average cost of capital, and capital spending. The assumptions were derived from information generated internally and external published reports and forecasts. The useful life of the company’s assets was estimated at 11 years for its pulp and paper assets. Product sales prices and foreign exchange assumptions for 2012 of CDN$1.00 = US$0.99 were based on management’s best estimates incorporating independent market information as well as analysis of historical data, trends and cycles. Product sales prices and foreign exchange assumptions for years 2013 to 2015 were based on independent, published market forecasts. The foreign exchange assumption was CDN$1.00 = US$0.97 in 2013 strengthening to CDN$1.00 = US$1.02 by 2015. Product sales prices and foreign exchange rate assumptions for 2016 and subsequent years were estimated by management based on long-term trend pricing for product sales prices and a long-term expected foreign exchange rate of CDN$1.00 = US$0.99. Step (i) of the impairment test demonstrated that impairment charges on the company’s pulp and paper assets were required as the carrying values of the pulp asset group and paper asset group exceeded the estimated undiscounted cash flows that will be generated by each respective group.

The company estimated the fair value of its pulp and paper assets on December 31, 2011 by discounting estimated future cash flows from the use and eventual disposal of its long-lived assets and net working capital to present value. A discount rate of 11% was used, reflecting current market assessments of the time value of money and the risks particular to the company’s assets. Impairment of $660.2 million was recognized on the assets of the company’s Canadian operations, based on the excess of the aggregate carrying values of the pulp and paper asset groups compared to their estimated fair values. The impairment reduced the carrying value of the company’s pulp assets by $83.5 million and the company’s paper assets by $576.7 million. The impairment charges were allocated to individual assets on a pro rata basis.

The company recorded a $0.3 million impairment recovery in the second quarter and a $0.4 million impairment recovery in the third quarter in respect of a lease obligation recognized in 2010 due to the discontinuation of the company’s paper recycling operation located in Coquitlam, British Columbia. These recoveries represented changes in estimated utility charges, insurance and property tax on the water lot lease from what was originally anticipated in 2010. On December 31, 2011, $1.2 million impairment expense was accrued in respect of this lease obligation. This additional accrual was based on unfavourable changes to certain key assumptions that support the measurement of the obligation. The lease obligation of $10.1 million of which $2.3 million is in Accounts payable and accrued liabilities and $7.8 million is in Other long-term obligations.

The company recorded a $1.1 million impairment charge related to the future rehabilitation of the landfill located at the discontinued Elk Falls mill. This charge was based on a revised site remediation estimate obtained in the fourth quarter from an independent third party, and represents the incremental environmental liability, on a discounted basis, that was accrued based on this estimate. It is the company’s accounting policy to capitalize the cost associated with environmental liabilities as property, plant and equipment. The company concluded that, based on the closure and impairment of Elk Falls’ assets in 2010, future economic benefits are unlikely, and therefore, this amount was charged as impairment and other closure costs.

Discontinued operations

In respect of the company’s Snowflake, Arizona mill, impairment of $151.0 million was recorded on September 30, 2011 on buildings, plant and equipment and operating maintenance supplies and spare parts inventory. Current and historical operating and cash flow losses plus forecasted continuing losses indicated probable impairment of these assets. A recoverability analysis was performed, and on the basis of this analysis, the carrying value of these assets was fully impaired. On December 31, 2011, $10.8 million impairment was recorded on Snowflake’s land on the basis of an appraisal, dated January 3, 2012, obtained from an independent third party real estate appraiser. On September 30, 2012, the Snowflake mill was permanently closed, and on January 30, 2013, the assets of the Snowflake mill and the shares of The Apache Railway Company (Apache Railway) were sold (see note 9, Assets held for sale and discontinued operations).

2010

As a result of the decision to permanently close the company’s Elk Falls paper mill and paper recycling operation in September 2010, the company recorded a $304.2 million charge for related impairment, severances and other closure costs. The Elk Falls mill had been indefinitely curtailed since February 2009 and the paper recycling facility was indefinitely idled in February 2010.

The following table provides the components of the impairment, severances and other closure costs:

Property, plant and equipment	$	272.5
Operating and maintenance supplies and spare parts inventory		20.3
		292.8
Less: impairment previously recorded on paper assets (prior to announcement of permanent closure)		(12.0	)
Severances		9.7
Other closure costs – operating lease at paper recycling operation		13.7
Total	$	304.2
Classification in consolidated statement of earnings (loss):
Impairment and other closure costs	$	294.5
Restructuring		9.7
	$	304.2

During the fourth quarter of 2010, the company assessed whether there were any impairment indicators present that would require the company to perform a detailed recovery test with respect to its pulp and paper assets. The company determined that there were no new impairment indicators at the end of 2010 compared to the impairment indicators that existed at the end of 2009. As a result, the company reviewed its detailed recovery test performed at the end of 2009 and determined that the cash flow analysis performed at that time on the company’s assets still in operation at the end of 2010 (excluding Elk Falls and the paper recycling operation shut down in 2010) indicated a significant excess of undiscounted cash flows over the net book value of the assets. In addition, the company reviewed the major assumptions used in the 2009 detailed recovery test and determined that, on an overall basis, the assumptions used were more conservative than the assumptions that would be used in a new impairment test. On that basis, the company determined that a new detailed recovery test was not required for 2010.

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FINANCIAL INSTRUMENTS (Details 1) (CAD) In Millions, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011 Predecessor [Member]
Balance, beginning of period	2.0	2.0	3.0
Increase (decrease) in provision	(2.0)	2.2	(1.0)
Balance, end of period (note 11)	0	2.2	2.0

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DEFERRED CREDITS (Tables)

12 Months Ended

Dec. 31, 2012

Deferred Revenue and Credits [Abstract]

Deferred Revenue and Credits Disclosure [Table Text Block]

Reconciliation of deferred credits was as follows:

	Successor		Predecessor
	Three months ended		Nine months ended			Year ended
	December 31		September 30			December 31
	2012		2012			2011
Balance, beginning of period	$	–	$	9.6		$	9.6
Adjustment related to fresh start accounting		–		(9.6	)		–
Balance, end of period	$	–	$	–		$	9.6

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COMMITMENTS (Details Textual) (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Operating Leases, Rent Expense, Net	1.8	6.6	10.1	10.4

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EMPLOYEE FUTURE BENEFITS (Details 2) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2012 Pension Plans, Defined Benefit [Member]	Sep. 30, 2012 Pension Plans, Defined Benefit [Member]	Dec. 31, 2012 Pension Plans, Defined Benefit [Member] Other Assets In Balance Sheets [Member]	Sep. 30, 2012 Pension Plans, Defined Benefit [Member] Other Assets In Balance Sheets [Member]	Dec. 31, 2012 Pension Plans, Defined Benefit [Member] Accounts Payable and Accrued Liabilities [Member]	Sep. 30, 2012 Pension Plans, Defined Benefit [Member] Accounts Payable and Accrued Liabilities [Member]	Dec. 31, 2012 Pension Plans, Defined Benefit [Member] Employee Future Benefits [Member]	Sep. 30, 2012 Pension Plans, Defined Benefit [Member] Employee Future Benefits [Member]	Dec. 31, 2012 Other Benefit Plans [Member]	Sep. 30, 2012 Other Benefit Plans [Member]	Dec. 31, 2012 Other Benefit Plans [Member] Other Assets In Balance Sheets [Member]	Sep. 30, 2012 Other Benefit Plans [Member] Other Assets In Balance Sheets [Member]	Dec. 31, 2012 Other Benefit Plans [Member] Accounts Payable and Accrued Liabilities [Member]	Sep. 30, 2012 Other Benefit Plans [Member] Accounts Payable and Accrued Liabilities [Member]	Dec. 31, 2012 Other Benefit Plans [Member] Employee Future Benefits [Member]	Sep. 30, 2012 Other Benefit Plans [Member] Employee Future Benefits [Member]	Dec. 31, 2011 Predecessor [Member]	Sep. 30, 2012 Predecessor [Member] Pension Plans, Defined Benefit [Member]	Dec. 31, 2011 Predecessor [Member] Pension Plans, Defined Benefit [Member]	Dec. 31, 2010 Predecessor [Member] Pension Plans, Defined Benefit [Member]	Dec. 31, 2011 Predecessor [Member] Pension Plans, Defined Benefit [Member] Other Assets In Balance Sheets [Member]	Dec. 31, 2011 Predecessor [Member] Pension Plans, Defined Benefit [Member] Accounts Payable and Accrued Liabilities [Member]	Dec. 31, 2011 Predecessor [Member] Pension Plans, Defined Benefit [Member] Employee Future Benefits [Member]	Sep. 30, 2012 Predecessor [Member] Other Benefit Plans [Member]	Dec. 31, 2011 Predecessor [Member] Other Benefit Plans [Member]	Dec. 31, 2010 Predecessor [Member] Other Benefit Plans [Member]	Dec. 31, 2011 Predecessor [Member] Other Benefit Plans [Member] Other Assets In Balance Sheets [Member]	Dec. 31, 2011 Predecessor [Member] Other Benefit Plans [Member] Accounts Payable and Accrued Liabilities [Member]	Dec. 31, 2011 Predecessor [Member] Other Benefit Plans [Member] Employee Future Benefits [Member]
Projected benefit obligation at end of period	0	0		386.5	393.9							149.2	150.8								393.9	383.8	379.4				150.8	162.3	154.5
Fair value of plan assets at end of period	233.0	231.9		233.0	231.9							0	0							226.9	231.9	226.9	246.4				0	0	0
Funded status	149.20	(162.00)	(156.90)	(153.50)	(162.00)	0.20	0.20	(7.40)	(7.30)	(146.30)	(154.90)	(149.20)	(150.80)	0	0	(5.80)	(5.30)	(143.40)	(145.50)			156.90		0.20	(6.90)	(150.20)		162.30		0	(6.80)	(155.50)

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CHANGES IN FUTURE ACCOUNTING STANDARDS

12 Months Ended

Dec. 31, 2012

Accounting Changes and Error Corrections [Abstract]

Description of New Accounting Pronouncements Not yet Adopted [Text Block]

5. CHANGES IN FUTURE ACCOUNTING STANDARDS

There were no new pronouncements issued by the FASB that may materially impact the company’s consolidated financial statements for future periods.

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CREDITOR PROTECTION PROCEEDINGS RELATED DISCLOSURES

12 Months Ended

Dec. 31, 2012

Creditor Protection Proceedings Related Disclosures [Abstract]

Creditor Protection Proceedings Related Disclosures [Text Block]

6. CredItOr Protection Proceedings RelateD Disclosures

Fresh start accounting

As discussed in note 3, Summary of significant accounting policies, the company applied fresh start accounting as of September 30, 2012, pursuant to which the reorganization value derived from the enterprise value established for the company was assigned to the company’s assets and liabilities, which required recording assets and liabilities at fair value in conformity with the procedures specified in ASC 805, Business Combinations. Deferred income taxes and pension and other post-employment benefits (OPEB) projected benefit obligations are excluded from this requirement. In accordance with fresh start accounting, the Predecessor company’s common shares, additional paid-in-capital, deficit and accumulated other comprehensive loss were eliminated. Accumulated depreciation on property, plant and equipment was eliminated and estimated remaining useful lives were updated.

Enterprise valuation

We engaged an independent financial advisor to assist us in the determination of the enterprise value of the Successor company. The enterprise value was estimated using three valuation methods: (i) discounted cash flow analysis (DCF), (ii) comparable company analysis, and (iii) precedent transactions analysis. The enterprise value was determined primarily based on the DCF analysis.

The DCF analysis is a forward-looking enterprise valuation methodology that estimates the value of an asset or business by calculating the present value of expected future cash flows to be generated by that asset or business. The company’s discount rate, defined as the blended rate of return required by debt and equity investors of the Successor company, was estimated to be 15%. A one percent change in the discount rate has an impact of approximately $40.0 million on the equity value of the company. Expected future cash flows were based on unlevered after-tax free cash flows, a five-year projection period, and an estimated value beyond the projection period known as a terminal value. Cash flow projections incorporated various assumptions, including future product sales prices and foreign exchange assumptions based on independent, published market forecasts, future cost trends based on the company’s operating history and realization of the cost reductions negotiated while in creditor protection. The enterprise value of the company calculated using the DCF analysis was $392.9 million.

The comparable company analysis estimates the value of the company based on a relative comparison with other publicly traded companies with similar operating and financial characteristics. Under this valuation methodology, the enterprise values of these publicly traded companies, calculated as the aggregate market value of their publicly traded equity securities plus the aggregate amount of net debt outstanding, are expressed as multiples of various measures of the respective company’s operating earnings such as earnings before interest, taxes, depreciation and amortization (EBITDA). These multiples are then applied to the company’s actual and projected operating results, after adjusting for differences in, among other things, product offerings, markets, size, risk profile, profitability, leverage and operating margins. The company’s implied multiple as of September 30, 2012 was estimated to be 4.9 X 2013 projected EBITDA.

The precedent transactions analysis estimates the value of the company based on a relative comparison with companies that were recent targets of merger and acquisition transactions. Under this valuation methodology, the purchase prices paid for these companies are expressed as multiples of various measures of the respective company’s operating earnings such as EBITDA. These multiples are then applied to the company’s actual and projected operating results, after adjusting for unique value considerations incorporated in purchase prices, as well as differences in, among other things, product offerings, markets, size, risk profile, profitability, leverage and operating margins. No recent precedent transactions were identified that were comparable on a relative basis to the company and, therefore, an implied multiple could not be estimated for the company in accordance with this valuation method.

In addition, certain of the company’s non-operating assets were valued separately as follows: (i) tax attributes were valued based on a DCF analysis of the projected tax savings that will arise from the use of the company’s available post-emergence attributes, and (ii) assets marketed to be sold prior to emergence from creditor protection were valued based on the present value of estimated gross sales proceeds minus estimated sales costs. Income taxes in the DCF analysis were estimated based on the projected statutory tax rates in Canada and the United States during the forecasting period of 2012 to 2017.

Allocation of reorganization value to assets and liabilities

The reorganization value derived from the company’s enterprise value was assigned to assets and liabilities in accordance with the acquisition method of accounting for business combinations, which requires recording assets and liabilities other than deferred income taxes and pension and OPEB projected benefit obligations at fair value. The amount of deferred income taxes for the Successor company was determined in accordance with FASB ASC 740. See note 21, Income taxes, for additional information. The amount of pension and OPEB projected benefit obligations was determined in accordance with FASB ASC 715, which required that the actuarial present value of the company’s defined benefit pension and post-retirement benefit plan assets and benefit obligations be determined based on certain assumptions (see note 19, Employee future benefits).

Fair value estimates were based on the following approaches:

§ Inventories: Fair value of finished goods inventories was based on estimated selling prices less selling costs, shipping costs and profit allowance. The fair values of raw materials and work in process inventories were estimated to approximate their carrying values. The fair value of mill stores and other supplies inventories was based on replacement cost for high-turnover items and on replacement cost less economic obsolescence for low-turnover items.

§ Fixed assets: Fair value of construction in progress was estimated to approximate carrying value. The fair value of land was based on the most recent property tax assessments. The fair value of other fixed assets was based on the cost valuation method and the income valuation method. The cost valuation method estimates fair value based on the estimated replacement cost of an asset, adjusted for various factors including physical deterioration, technological obsolescence, economic life, and significant maintenance or betterment projects expected in the foreseeable future. The income valuation method estimates fair value based on a DCF analysis, which incorporates various assumptions including future product sales prices and foreign exchange assumptions based on independent, published market forecasts, future cost trends based on the company’s operating history, and realization of the cost reductions negotiated while in creditor protection.

§ Assets and liabilities held for sale: The fair value of assets held for sale and liabilities associated with assets held for sale were estimated based on the present value of expected sales price less cost to sell.

§ All other assets and liabilities were recorded at the Predecessor company’s carrying values, which approximate fair value, after adjustments resulting from the implementation of the Plan.

§ Goodwill: Calculated as the amount by which the enterprise value of the Successor company exceeded the fair value of identified assets and liabilities.

Reorganized consolidated balance sheet

The effects of the implementation of the Plan and the application of fresh start accounting on the company’s consolidated balance sheet as of September 30, 2012, are presented in the reorganized consolidated balance sheet below.

The adjustments set forth in the column labeled Plan of arrangement adjustments reflects the impact of implementing the Plan including, among other things, the discharge and settlement of liabilities subject to compromise based on claims allowed by the Courts, the issuance of Successor company common stock to holders of allowed claims in satisfaction of such claims, and the incurrence of new indebtedness related to secured notes issued to holders of the Predecessor company’s secured pre-petition debt and related to the company’s exit financing.

The adjustments set forth in the column labeled Fresh start accounting adjustments reflect, among other things, adjustments to the carrying values of the company’s assets and liabilities to reflect their fair values, and the elimination of common stock, additional paid-in-capital, deficit and accumulated other comprehensive loss as a result of the application of fresh start accounting.

	As at September 30, 2012
				Plan of			Fresh Start
				Arrangement			Accounting
(In millions of Canadian dollars)	Predecessor			Adjustments			Adjustments			Successor
Assets
Current assets
Cash and cash equivalents	$	22.7		$	(10.5	)1	$	–		$	12.2
Restricted cash		9.8			(6.1	)1		–			3.7
Accounts receivable		144.8			(4.0	)4		–			140.8
Inventories		131.5			–			–			131.5
Prepaids and other		20.1			–			(7.1	)7		13.0
Assets held for sale		44.2			–			12.07			56.2
		373.1			(20.6	)		4.9			357.4
Property, plant and equipment		356.7			–			257.47			614.1
Goodwill		–			–			56.77			56.7
Deferred income tax assets		2.5			–			(2.5	)7		–
Other assets		2.6			9.31			–			11.9
	$	734.9		$	(11.3	)	$	316.5		$	1,040.1
Liabilities
Liabilities not subject to compromise
Current liabilities
Accounts payable and accrued liabilities	$	85.3		$	12.22		$	–		$	97.5
Current portion of long-term debt		6.7			–			–			6.7
Liabilities associated with assets held for sale		16.6			0.52			(2.3	)7		14.8
		108.6			12.7			(2.3	)		119.0
Long-term debt		215.4			243.53			–			458.9
Employee future benefits		300.4			–			–			300.4
Other long-term obligations		9.0			–			–			9.0
Deferred credits		9.6						(9.6	)7		–
Total liabilities not subject to compromise		643.0			256.2			(11.9	)		887.3
Liabilities subject to compromise		875.5			(875.5	)4		–			–
Total liabilities		1,518.5			(619.3	)		(11.9	)		887.3
Deficiency
Shareholders’ deficiency
Predecessor common stock		1,035.2			–			(1,035.2	)8		–
Successor common stock		–			144.95			–			144.9
Additional paid-in capital		16.7			–			(16.7	)8		–
Deficit		(1,688.1	)		463.16			1,225.08			–
Accumulated other comprehensive loss		(114.1	)		–			114.18			–
		(750.3	)		608.0			287.2			144.9
Non-controlling interest (deficit)		(33.3	)		–			41.2			7.9
		(783.6	)		608.0			328.47			152.8
	$	734.9		$	(11.3	)	$	316.5		$	1,040.1

Plan of Arrangement Adjustments

1 Implementation of the Plan resulted in the following cash impact:

(In millions of Canadian dollars)
Proceeds from implementation of the Plan:
Release of restricted cash	$	6.1
Borrowing under the ABL Facility		64.0
Issuance of Floating Rate Notes		33.4
Payments related to implementation of the Plan
Repayment of DIP Credit Facility, including exit fee of $6.9 million		(104.5	)
Payment of issuance costs related to new debt		(9.3	)
Other		(0.2	)
	$	(10.5	)

2 Reflects the estimated Cash Convenience Pool and PREI Proceeds Pool (see note 2, Creditor protection proceedings) that was payable to the company’s general creditors and the holders of the Predecessor company’s 2014 Notes as of September 30, 2012 as full settlement of their allowed claims under the creditor protection proceedings. The company paid out the Cash Convenience Pool of $1.0 million in November 2012. On February 13, 2013, the company agreed to the sale of its interest in PREI, subject to Court approval, for proceeds of $33.0 million compared to estimated proceeds as of September 30, 2012 of $30.0 million (see note 8, Variable interest entities).

3 Reflects (i) the issuance of US$250.0 million senior secured notes due in 2017 to the holders of the Predecessor company’s 2016 Notes as partial settlement of their allowed claims under the creditor protection proceedings, (ii) the amount withdrawn on the company’s ABL Facility, (iii) the issuance of US$35.0 million Floating Rate Notes, and (iv) repayment of the withdrawn amount on the DIP Credit Facility that was cancelled on exit from the creditor protection proceedings (see note 2, Creditor protection proceedings).

4 The settlement or extinguishment of all remaining liabilities subject to compromise as of September 30, 2012 under the Plan is summarized below:

(In millions of Canadian dollars)
Unsecured pre-petition debt	$	243.9
Secured pre-petition debt		380.9
Accrued interest on unsecured pre-petition debt		18.9
Accrued interest on secured pre-petition debt		59.5
Accounts payable and accrued liabilities, excluding accrued interest		33.8
Pension and other post-retirement projected benefit obligations		24.8
Labour union claim *		91.8
Rejected leases and contracts		21.9
Total liabilities subject to compromise of the Predecessor company		875.5
Issuance of Successor company common stock **		(144.9	)
Issuance of new senior secured notes		(243.8	)
Estimated Cash Convenience Pool payable		(0.9	)
Estimated PREI Proceeds Pool payable ***		(11.7	)
Elimination of sales tax receivable related to compromised accounts payable		(4.0	)
Gain on extinguishment of liabilities subject to compromise ****	$	470.2

* The labour unions at the company’s Canadian mills submitted unsecured claims with respect to the June 25, 2012 creditor vote on the Plan. These claims were based on the estimated present value of the five-year wage and benefit reductions agreed to in the new labour agreements that went into effect on May 1, 2012. These claims, which were under dispute at the time of the approval of the Plan, were subsequently allowed by the Court.

** On September 30, 2012, the company had 14.4 million common shares outstanding. These common shares were issued to its secured bondholders. On September 30, 2012, the company held a total of 0.6 million common shares in reserve for the benefit of holders of allowed unsecured creditor claims comprising the Unsecured Creditor Share Pool. In December 2012, 127,571 additional common shares were issued as full and final settlement of the Unsecured Creditor Share Pool, increasing the total common shares outstanding as of December 31, 2012 to 14,527,571.

*** The company entered into an agreement to sell PREI on February 13, 2013 for $33.0 million and therefore adjusted the estimated PREI Proceeds Pool payable as of December 31, 2012 to $12.9 million.

**** Includes gain related to discontinued operations of $4.8 million. See note 9, Assets held for sale and discontinued operations.

5 Reflects the issuance of common stock of the Successor company, which had an equity value of $144.9 million as of September 30, 2012 which was determined as follows:

(In millions of Canadian dollars)
Enterprise value	$	392.9
Plus:
Net redundant assets		117.3
Less:
Interest bearing debt		(351.8	)
Other adjustments		(13.5	)
Equity value of the Successor company	$	144.9

6 Reflects the following items, all of which were included in Reorganization items, net in our consolidated statements of earnings (loss) for the nine months ended September 30, 2012:

(In millions of Canadian dollars)
Gain on extinguishment of liabilities subject to compromise	$	470.2
Professional fees *		(6.9	)
Other		(0.2	)
Gain due to plan of arrangement adjustments **	$	463.1

* Represents professional fees that were contractually due to certain professionals as “success” fees upon the company’s emergence from the creditor protection proceedings and were recorded as part of the effects of implementing the plan of arrangement.

** Includes gain related to discontinued operations of $7.1 million. See note 9, Assets held for sale and discontinued operations.

Fresh Start Accounting Adjustments

7 Reflects the following adjustments to the carrying value of asset and liabilities to reflect their estimated values as of September 30, 2012 based on the respective valuation methods discussed previously:

(In millions of Canadian dollars)
Prepaids and other	$	(7.1	)
Property, plant and equipment		257.4
Assets held for sale		12.0
Goodwill		56.7
Deferred income tax assets		(2.5	)
Liabilities associated with assets held for sale		2.3
Deferred credits		9.6
Gain due to fresh start accounting adjustments	$	328.4

The following table summarizes the reconciliation of the enterprise equity value to the reorganization value, and the allocation of the reorganization value to the assets and liabilities of the Successor company based on their estimated fair values as of September 30, 2012.

(In millions of Canadian dollars)
Enterprise value of the Successor company, including net redundant assets and other adjustments	$	496.7
Adjusted for:
Non-controlling deficit		7.9
Non-interest bearing liabilities		535.5
Reorganization value to be allocated to assets		1,040.1
Less amounts allocated to the value of:
Total current assets		(357.4	)
Property, plant and equipment		(614.1	)
Other assets		(11.9	)
Reorganization value not allocated (goodwill)	$	56.7

8 The net adjustments to common stock, additional paid-in-capital, deficit, and accumulated other comprehensive loss included the adjustments required to state assets and liabilities of the Successor company at fair value, which resulted in a gain of $328.4 million included in Reorganization items, net ($328.3 million) and Loss from discontinued operations net of tax ($0.1 million) in the company’s consolidated statements of earnings (loss) for the nine months ended September 30, 2012, and the elimination of the Predecessor company’s equity accounts pursuant to fresh start accounting.

Reorganization Items, Net

Expenses (including professional fees), realized gains and losses, and provisions for losses resulting from reorganization activities are reported separately from ongoing operations of the business in the consolidated statement of earnings (loss) as Reorganization items, net. Interest expense isn’t a reorganization item.

The components of reorganization items, net for the three months ended December 31, 2012 and the nine months ended September 30, 2012, were as follows:

Reorganization items, net	Three months ended December 31, 2012		Nine months ended September 30, 2012
Professional fees ¹	$	1.8	$	24.7
Gain due to plan of arrangement adjustments ²		1.4		(456.0	)
Gain due to fresh start accounting adjustments ³		–		(328.3	)
DIP financing costs 4		–		3.8
Acceleration of ABL financing costs 5		–		3.3
Provision for repudiated lease contract 6		–		7.0
Write-off of debt discount, modification and issuance costs 7		–		(11.0	)
Adjustment to pre-petition accounts payable 8		–		(4.8	)
Adjustment to other post-employment benefits		–		2.4
Provision for labour union claims 9		–		91.8
Other		–		0.2
Reorganization items, net from continuing operations		3.2		(666.9	)
Gain due to plan of arrangement adjustments ²		1.0		(7.1	)
Gain due to fresh start accounting adjustments ³		–		(0.1	)
Adjustment to pre-petition accounts payable		–		(1.9	)
Provision for repudiated coal contract 6		–		4.3
Reorganization items, net from discontinued operations		1.0		(4.8	)
Total	$	4.2	$	(671.7	)

1 Professional fees directly related to the creditor protection proceedings, ongoing monitoring and establishment of a reorganization plan, including legal, consulting and other professional fees.

2 See discussion under Plan of arrangement adjustments above.

3 See discussion under Fresh start accounting adjustments above.

4 DIP financing costs incurred in connection with entering into the DIP Credit Agreement, including commitment fees.

5 Pursuant to the creditor protection proceedings, the company’s former ABL Facility was replaced by the DIP Credit Facility which resulted in the acceleration of the remaining deferred unamortized financing costs on the ABL Facility to the consolidated statements of earnings (loss).

6 The company repudiated on a lease contract at its paper recycling operation which was closed in 2010, resulting in a $7.0 million adjustment to the allowed claims amount. The company repudiated on a coal contract at its Snowflake mill, discontinued on September 30, 2012, which resulted in adjustments for allowed claims of $4.3 million.

7 The company’s secured and unsecured pre-petition debt balances were adjusted to the allowed claims amounts, defined as the outstanding principal plus accrued and unpaid interest, which resulted in the write-off of the unamortized discount, modification and debt issue costs on the 2014 Notes and 2016 Notes.

8 The company’s pre-petition accounts payable were adjusted to the allowed claims amount.

9 The labour unions at the company’s Canadian mills submitted unsecured claims with respect to the June 25, 2012 creditor vote on the Plan. These claims were based on the estimated present value of the five-year wage and benefit reductions agreed to in the new labour agreements that went into effect on May 1, 2012. These claims, which were under dispute at the time of the approval of the Plan, were subsequently allowed by the Court, resulting in a provision for $91.8 million.

Liabilities Subject to Compromise

As of December 31, 2012 and September 30, 2012, the company had no liabilities subject to compromise due to its emergence from creditor protection proceedings on September 13, 2012.

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OTHER INCOME (EXPENSE), NET (Details) (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Fee related to bond exchange	0
Loss on derivative financial instruments	0
Foreign exchange gain (loss) on working capital balances	0.4
Gain (loss) on disposal of property, plant and equipment	(0.4)
Loss on fires	0
Other	0.2
Other expense, net	0.1
Predecessor [Member]
Fee related to bond exchange		0	0	(8.3)
Loss on derivative financial instruments		(1.2)	(3.4)	(3.6)
Foreign exchange gain (loss) on working capital balances		(7.9)	3.2	1.5
Gain (loss) on disposal of property, plant and equipment		6.7	0.1	7.2	3.9	(0.4)
Loss on fires		0	(2.4)	0
Other		(0.2)	0.4	0.6
Other expense, net		(2.6)	(2.1)	(2.6)	(28.6)	(15.7)

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VARIABLE INTEREST ENTITIES

12 Months Ended

Dec. 31, 2012

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Consolidation Of Variable Interest Entities Disclosure [Text Block]

8. VARIABLE INTEREST ENTITIES

The company has a 50.001% interest in PREI and consolidates 100% of it as PREI is a VIE in which the company is the primary beneficiary. PREI consists of an integrated hydroelectric power generating, transmission and distribution system which includes two hydroelectric stations in B.C. with installed capacity of 83 megawatts. The company generally purchases 100% of the power generated by PREI.

The company has limited access to PREI’s financial assets, which generally take the form of interest on loans, management fees and earnings distributions based on the company’s interest in PREI. In addition, creditors of PREI have recourse limited to the assets in PREI.

As disclosed in note 2, Creditor protection proceedings, the company must sell its interest in PREI, and in accordance with the Plan, distribute up to 50% of the net proceeds to its creditors. On February 13, 2013, the company agreed to the sale of its interest in PREI, subject to Court approval, to Powell River Energy Trust, a Brookfield Renewable affiliate, for proceeds of $33.0 million. Powell River Energy Trust currently holds the other 50% stake in PREI. The company is required under the Plan to offer its portion of the proceeds from the sale of PREI to the holders of Floating Rate Notes as partial settlement at par of this debt. In accordance with a power purchasing agreement which expires in 2016, with possible extension to 2021 at the discretion of the company, the company will continue to purchase all electricity generated by PREI subsequent to the sale, which is expected to be completed in the first quarter of 2013 subject to various closing conditions.

Condensed financial information with respect to PREI is as follows:

	Successor			Predecessor
	Three months ended December 31			Nine months ended September 30			Years ended December 31
	2012			2012			2011			2010
Condensed statements of earnings (loss)
Sales – affiliate 1	$	4.7		$	15.6		$	23.4		$	20.5
Cost of sales, excluding depreciation and amortization		2.1			5.1			7.0			6.5
Depreciation and amortization		1.9			3.9			13.4			7.4
		4.0			9.0			20.4			13.9
Operating earnings		0.7			6.6			3.0			6.6
Interest expense		(2.4	)		(7.3	)		(8.9	)		(8.8	)
Interest expense – affiliate 1		(0.9	)		(2.5	)		(2.4	)		(2.1	)
Other income (expense), net		(0.3	)		(4.0	)		–			0.1
Reorganization items, net		(1.3	)		55.6			–			–
Income tax recovery (expense)		1.1			(11.9	)		3.0			1.6
Net earnings (loss)		(3.1	)		36.5			(5.3	)		(2.6	)
Other comprehensive income		–			0.1			0.1			0.2
Total comprehensive income (loss) 2	$	(3.1	)	$	36.6		$	(5.2	)	$	(2.4	)

 

	Successor						Predecessor
	As at December 31			As at September 30			As at December 31
	2012			2012			2011
Condensed balance sheets
Current assets
Cash and cash equivalents	$	6.6		$	6.9		$	6.0
Other		2.7			3.4			3.1
Property, plant and equipment		147.0			145.9			95.5
	$	156.3		$	156.2		$	104.6
Current liabilities
Accounts payable and accrued liabilities	$	13.1		$	8.5		$	4.7
Long-term debt (note 18)		113.8			113.8			113.8
Long-term debt – affiliate 1		20.8			20.8			20.8
Deferred income taxes		23.6			24.6			12.7
Deficit 2		(15.0	)		(11.5	)		(47.4	)
	$	156.3		$	156.2		$	104.6

¹ Balances with Catalyst Paper Energy Holdings Inc., a subsidiary of Catalyst Paper Corporation.

² 50% is included in the company’s non-controlling interest (deficit) balances.

The company has identified one other potential VIE, but has not been able to obtain the financial information necessary to evaluate whether the entity is a VIE, or, if the entity is a VIE, whether the company is the primary beneficiary. The company has entered into a building lease agreement with this potential VIE whereby the company has agreed to continue making the prescribed lease payments directly to the financial institution holding the mortgage on the building in the event the lessor is no longer able to meet its contractual obligations. The principal amount of the mortgage was $3.0 million on December 31, 2012 and $3.4 million on September 30, 2012 (2011 – $4.8 million). This agreement does not increase the company’s liability beyond the obligation under the building lease.

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OTHER INCOME (EXPENSE), NET (Tables)

12 Months Ended

Dec. 31, 2012

Other Income and Expenses [Abstract]

Schedule of Other Nonoperating Income (Expense) [Table Text Block]

 The components of other income (expense), net, were as follows:

	Successor			Predecessor
	Three months ended			Nine months ended			Years ended
	December 31			September 30			December 31
	2012			2012			2011			2010
Fee related to bond exchange	$	–		$	–		$	–		$	(8.3	)
Loss on derivative financial instruments		–			(1.2	)		(3.4	)		(3.6	)
Foreign exchange gain (loss) on working capital balances		0.4			(7.9	)		3.2			1.5
Gain (loss) on disposal of property, plant and equipment		(0.5	)		6.7			0.1			7.2
Loss on fires		–			–			(2.4	)		–
Other		0.2			(0.2	)		0.4			0.6
	$	0.1		$	(2.6	)	$	(2.1	)	$	(2.6	)

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OTHER LONG-TERM OBLIGATIONS (Details) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]	Dec. 31, 2008 Predecessor [Member]
Restructuring (note 24)	0	0	0.1
Environmental and remedial	5.8	5.9	8.0
Lease obligation - paper recycling - long term	0	0	7.8
Other	3.1	3.1	3.3
Other long-term obligations (note 20)	8.9	9.0	19.2	20.2	13.4	13.3

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CREDITOR PROTECTION PROCEEDINGS RELATED DISCLOSURES (Details Textual) In Millions, except Share data, unless otherwise specified	12 Months Ended								3 Months Ended	12 Months Ended	3 Months Ended	9 Months Ended			9 Months Ended
	Dec. 31, 2012 CAD	Sep. 30, 2012 CAD	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2012 Senior Secured Notes Due 2017 [Member] USD ($)	Dec. 31, 2012 Senior Secured Notes Mature September 13, 2017 [Member] USD ($)	Dec. 31, 2011 Predecessor [Member]	Dec. 31, 2012 Prei [Member] CAD	Dec. 31, 2012 Prei [Member] CAD	Dec. 31, 2012 Unsecured Creditor [Member] CAD	Sep. 30, 2012 Unsecured Creditor [Member] CAD	Dec. 31, 2012 Fresh Start Accounting Adjustments [Member] CAD	Sep. 30, 2012 Fresh Start Accounting Adjustments [Member] CAD	Sep. 30, 2012 Plan Of Arrangement Adjustments [Member] CAD
Blended Rate Of Return Required By Debt and Equity Investors	15.00%
Impact On Equity Value By Change In Blended Rate	40.0
Enterprise value													392.9	496.7	392.9
Repayment Of Dip Credit Facility Exit Fee															6.9
Long-term Debt, Gross						250.0	35.0
Common stock, outstanding	14,527,571	14,400,000	381,800,000	381,800,000	381,800,000			381,900,450
Common Stock Shares Reserve												0.6
Liabilities Subject to Compromise, Creditor Protection Proceedings, Forgiveness	4.8
Repayments of Unsecured Debt	1.0										1.0
Proceeds from Sale of Interest in Corporate Unit									33.0	33.0
Estimated Proceeds From Sale Of Interest In Corporate Unit	12.9	30.0
Common stock, issued	14,527,571	14,400,000						381,900,450			127,571

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STOCK-BASED COMPENSATION PLANS (Tables)

12 Months Ended

Dec. 31, 2012

Share-Based Compensation [Abstract]

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]

Details of stock-based compensation expense:

	Successor		Predecessor
	Three months ended		Nine months ended		Years ended
	December 31		September 30		December 31
	2012		2012		2011		2010
Stock option awards	$	–	$	–	$	0.2	$	0.2
Restricted share units		–		–		0.1		0.3
Deferred share units		–		–		–		–
	$	–	$	–	$	0.3	$	0.5

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

The fair value of share options was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:

	2012		2011			2010
Risk-free interest rate		N/A		3.0	%		2.5	%
Annual dividends per share		N/A		Nil			Nil
Expected stock price volatility		N/A		74	%		70	%
Expected option life (in years)		N/A		10.0			10.0
Average fair value of options granted (in dollars)		N/A	$	0.25		$	0.06

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

Changes in the number of options outstanding during the years ended December 31 were as follows:

	2012					2011					2010
	Number of options			Weighted average exercise price (in dollars)		Number of options			Weighted average exercise price (in dollars)		Number of options			Weighted average exercise price (in dollars)
Beginning of year		7,522,337		$	0.91		7,581,693		$	1.00		2,973,551		$	2.72
Granted		–			–		234,000			0.38		5,080,647			0.13
Exercised		–			–		–			–		–			–
Forfeited		(54,000	)		0.38		–			–		–			–
Expired or cancelled		(7,468,337	)		0.91		(293,356	)		2.98		(472,505	)		2.37
End of year		–		$	–		7,522,337		$	0.91		7,581,693		$	1.00

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]

Changes in the number of outstanding RSUs during the year ended December 31, 2012 were as follows:

	Number of shares			Weighted average fair value at grant date (in dollars)
Beginning of year		3,214,686		$	0.11
Granted		–			–
Vested/exercised		–			–
Expired or cancelled		(3,214,686	)		0.11
End of year		–			–

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OTHER ASSETS (Details) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2009 Predecessor [Member]	Dec. 31, 2008 Predecessor [Member]
Deferred financing costs	9.0	9.8	11.8
Deferred charges and other	1.8	1.9	9.9
Derivative financial instruments	0	0	2.5
Accrued benefit asset - pension plan (note 19)	0.2	0.2	0.2
Other Assets, Noncurrent	11.00	11.90	24.40	27.00	38.00	65.00

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INTEREST EXPENSE, NET (Tables)

12 Months Ended

Dec. 31, 2012

Interest Expense Net Disclosure [Abstract]

Schedule Of Interest Expense Net Disclosures [Table Text Block]

The components of interest expense, net were as follows:

	Successor		Predecessor
	Three months ended		Nine months ended			Years ended
	December 31		September 30			December 31
	2012		2012			2011			2010
Interest on long-term debt	$	10.8	$	59.6		$	72.0		$	71.5
Other		0.8		0.8			1.5			0.8
		11.6		60.4			73.5			72.3
Interest income		–		(0.1	)		(0.3	)		(0.4	)
	$	11.6	$	60.3		$	73.2		$	71.9

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ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (Details 1) (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Impairment, severances and other closure costs	11.00	8.70	161.80
Income tax expense	0
Loss from discontinued operations, net of tax	(12.9)
Predecessor [Member]
Income tax expense		0	1.0	3.5
Loss from discontinued operations, net of tax		(3.6)	(195.5)	(19.5)	(7.3)	10.4
Snowflake Mill [Member]
Sales	4.5
Cost of sales, excluding depreciation and amortization	(5.0)
Depreciation and amortization	0
Impairment, severances and other closure costs	11.00
Restructuring Costs	(1.1)
Interest expense, net	0
Other income (expense), net	0.7
Reorganization items, net (note 6)	(1.0)
Income tax expense	0
Loss from discontinued operations, net of tax	(12.9)
Snowflake Mill [Member] | Predecessor [Member]
Sales		142.8	181.8	177.2
Cost of sales, excluding depreciation and amortization		(142.4)	(202.9)	(183.5)
Depreciation and amortization		0	(7.0)	(9.6)
Impairment, severances and other closure costs	(8.70)	(8.70)	(161.80)	0
Restructuring Costs		0	0	0
Interest expense, net		(0.1)	(0.2)	(0.1)
Other income (expense), net		0	(4.4)	0
Reorganization items, net (note 6)		4.8	0	0
Income tax expense		0	(1.0)	(3.5)
Loss from discontinued operations, net of tax		(3.6)	(195.5)	(19.5)

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INCOME TAXES (Details Textual) (CAD) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended	12 Months Ended							12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Sep. 30, 2012 Predecessor [Member]	Dec. 31, 2011 Predecessor [Member]	Dec. 31, 2010 Predecessor [Member]	Dec. 31, 2011 Segment, Continuing Operations [Member]	Dec. 31, 2010 Segment, Continuing Operations [Member] Predecessor [Member]	Dec. 31, 2011 Segment, Discontinued Operations [Member]	Dec. 31, 2010 Segment, Discontinued Operations [Member] Predecessor [Member]	Dec. 31, 2012 Canadian Federal [Member]	Dec. 31, 2012 Canadian Federal [Member] Maximum [Member]	Dec. 31, 2012 Canadian Federal [Member] Minimum [Member]	Dec. 31, 2012 U S Federal [Member]
Valuation Allowance, Amount	233.7
Operating Loss Carryforwards										35.0			16.4
Operating Loss Carryforwards, Expiration Dates											2031	2028	2032
Operating Loss Carryforwards, Valuation Allowance										8.8			6.1
Unrecognized Tax Benefits	5.3	5.3	5.3	5.3	5.9
Income tax recovery at Canadian statutory income tax rates	(9.1)		162.3	(260.8)	(118.2)	8.4	19.8	1.0	3.5

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OTHER INCOME (EXPENSE), NET

12 Months Ended

Dec. 31, 2012

Other Income and Expenses [Abstract]

Other Income and Other Expense Disclosure [Text Block]

26. OTHER INCOME (EXPENSE), NET

The components of other income (expense), net, were as follows:

	Successor			Predecessor
	Three months ended			Nine months ended			Years ended
	December 31			September 30			December 31
	2012			2012			2011			2010
Fee related to bond exchange	$	–		$	–		$	–		$	(8.3	)
Loss on derivative financial instruments		–			(1.2	)		(3.4	)		(3.6	)
Foreign exchange gain (loss) on working capital balances		0.4			(7.9	)		3.2			1.5
Gain (loss) on disposal of property, plant and equipment		(0.5	)		6.7			0.1			7.2
Loss on fires		–			–			(2.4	)		–
Other		0.2			(0.2	)		0.4			0.6
	$	0.1		$	(2.6	)	$	(2.1	)	$	(2.6	)

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STOCK-BASED COMPENSATION PLANS (Details Textual) (CAD) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	12
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	10 years
Percentage Of Share-Based Awards Options, Weighted Average Price Per Share Of Common Shares	25.00%
Share-Based Compensation Arrangement By Share-Based Payment Award, Percentage Of Grants	25.00%
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options		0.1
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options		0.1
Number of options, Forfeited	54,000	0	0
Deferred Share Unit [Member]
Number of options, Forfeited		474,416

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INVENTORIES (Tables)

12 Months Ended

Dec. 31, 2012

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

The components of inventories are as follows:

	Successor				Predecessor
	As at December 31		As at September 30		As at December 31
	2012		2012		2011
Finished goods
Specialty printing papers	$	22.3	$	31.1	$	28.6
Newsprint		7.7		7.8		9.1
Pulp		3.9		3.0		7.8
Total finished goods		33.9		41.9		45.5
Work-in-progress		0.9		0.9		1.1
Raw materials – wood chips, pulp logs and other		23.1		21.1		26.3
Operating and maintenance supplies and spare parts		67.1		67.6		74.0
	$	125.0	$	131.5	$	146.9

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PREPAIDS AND OTHER

12 Months Ended

Dec. 31, 2012

Prepayments and Other Current Assets [Abstract]

Prepayments and Other Current Assets [Text Block]

13. PREPAIDS AND OTHER

The components of prepaids and other are as follows:

	Successor				Predecessor
	As at December 31		As at September 30		As at December 31
	2012		2012		2011
Property taxes, insurance and licences	$	3.2	$	6.7	$	2.0
Derivative financial instruments		–		–		2.5
Deferred income tax assets (note 21)		–		–		13.1
Other		5.7		6.3		2.4
	$	8.9	$	13.0	$	20.0

Prepaids and other assets are pledged as collateral against the long-term debt of the company. See note 18, Long-term debt, for detailed disclosure of the collateral arrangements of the company.

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EMPLOYEE FUTURE BENEFITS (Details 7) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011 Predecessor [Member]	Dec. 31, 2012 Cash and Cash Equivalents [Member]	Sep. 30, 2012 Cash and Cash Equivalents [Member]	Dec. 31, 2011 Cash and Cash Equivalents [Member] Predecessor [Member]	Dec. 31, 2012 Global Equity Pooled Funds [Member]		Sep. 30, 2012 Global Equity Pooled Funds [Member]		Dec. 31, 2011 Global Equity Pooled Funds [Member] Predecessor [Member]		Dec. 31, 2012 Canadian Equity Pooled Funds [Member]		Sep. 30, 2012 Canadian Equity Pooled Funds [Member]		Dec. 31, 2011 Canadian Equity Pooled Funds [Member] Predecessor [Member]		Dec. 31, 2011 Balanced Equity Pooled Funds [Member] Predecessor [Member]		Dec. 31, 2012 Canadian Long Bond Pooled Funds [Member]		Sep. 30, 2012 Canadian Long Bond Pooled Funds [Member]		Dec. 31, 2011 Canadian Long Bond Pooled Funds [Member] Predecessor [Member]		Dec. 31, 2012 Canadian Bond Pooled Funds [Member]		Sep. 30, 2012 Canadian Bond Pooled Funds [Member]		Dec. 31, 2011 Canadian Bond Pooled Funds [Member] Predecessor [Member]		Dec. 31, 2012 Forward Currency Contracts [Member]		Sep. 30, 2012 Forward Currency Contracts [Member]		Dec. 31, 2011 Forward Currency Contracts [Member] Predecessor [Member]		Dec. 31, 2012 Real Estate [Member]		Sep. 30, 2012 Real Estate [Member]		Dec. 31, 2012 Fair Value, Inputs, Level 1 [Member]	Sep. 30, 2012 Fair Value, Inputs, Level 1 [Member]	Dec. 31, 2011 Fair Value, Inputs, Level 1 [Member] Predecessor [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 1 [Member] Cash and Cash Equivalents [Member]	Sep. 30, 2012 Fair Value, Inputs, Level 1 [Member] Cash and Cash Equivalents [Member]	Dec. 31, 2011 Fair Value, Inputs, Level 1 [Member] Cash and Cash Equivalents [Member] Predecessor [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 1 [Member] Global Equity Pooled Funds [Member]		Sep. 30, 2012 Fair Value, Inputs, Level 1 [Member] Global Equity Pooled Funds [Member]		Dec. 31, 2011 Fair Value, Inputs, Level 1 [Member] Global Equity Pooled Funds [Member] Predecessor [Member]		Dec. 31, 2012 Fair Value, Inputs, Level 1 [Member] Canadian Equity Pooled Funds [Member]		Sep. 30, 2012 Fair Value, Inputs, Level 1 [Member] Canadian Equity Pooled Funds [Member]		Dec. 31, 2011 Fair Value, Inputs, Level 1 [Member] Canadian Equity Pooled Funds [Member] Predecessor [Member]		Dec. 31, 2011 Fair Value, Inputs, Level 1 [Member] Balanced Equity Pooled Funds [Member] Predecessor [Member]		Dec. 31, 2012 Fair Value, Inputs, Level 1 [Member] Canadian Long Bond Pooled Funds [Member]		Sep. 30, 2012 Fair Value, Inputs, Level 1 [Member] Canadian Long Bond Pooled Funds [Member]		Dec. 31, 2011 Fair Value, Inputs, Level 1 [Member] Canadian Long Bond Pooled Funds [Member] Predecessor [Member]		Dec. 31, 2012 Fair Value, Inputs, Level 1 [Member] Canadian Bond Pooled Funds [Member]		Sep. 30, 2012 Fair Value, Inputs, Level 1 [Member] Canadian Bond Pooled Funds [Member]		Dec. 31, 2011 Fair Value, Inputs, Level 1 [Member] Canadian Bond Pooled Funds [Member] Predecessor [Member]		Dec. 31, 2012 Fair Value, Inputs, Level 1 [Member] Forward Currency Contracts [Member]		Sep. 30, 2012 Fair Value, Inputs, Level 1 [Member] Forward Currency Contracts [Member]		Dec. 31, 2011 Fair Value, Inputs, Level 1 [Member] Forward Currency Contracts [Member] Predecessor [Member]		Dec. 31, 2012 Fair Value, Inputs, Level 1 [Member] Real Estate [Member]		Sep. 30, 2012 Fair Value, Inputs, Level 1 [Member] Real Estate [Member]		Dec. 31, 2012 Fair Value, Inputs, Level 2 [Member]	Sep. 30, 2012 Fair Value, Inputs, Level 2 [Member]	Dec. 31, 2011 Fair Value, Inputs, Level 2 [Member] Predecessor [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 2 [Member] Cash and Cash Equivalents [Member]	Sep. 30, 2012 Fair Value, Inputs, Level 2 [Member] Cash and Cash Equivalents [Member]	Dec. 31, 2011 Fair Value, Inputs, Level 2 [Member] Cash and Cash Equivalents [Member] Predecessor [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 2 [Member] Global Equity Pooled Funds [Member]		Sep. 30, 2012 Fair Value, Inputs, Level 2 [Member] Global Equity Pooled Funds [Member]		Dec. 31, 2011 Fair Value, Inputs, Level 2 [Member] Global Equity Pooled Funds [Member] Predecessor [Member]		Dec. 31, 2012 Fair Value, Inputs, Level 2 [Member] Canadian Equity Pooled Funds [Member]		Sep. 30, 2012 Fair Value, Inputs, Level 2 [Member] Canadian Equity Pooled Funds [Member]		Dec. 31, 2011 Fair Value, Inputs, Level 2 [Member] Canadian Equity Pooled Funds [Member] Predecessor [Member]		Dec. 31, 2011 Fair Value, Inputs, Level 2 [Member] Balanced Equity Pooled Funds [Member] Predecessor [Member]		Dec. 31, 2012 Fair Value, Inputs, Level 2 [Member] Canadian Long Bond Pooled Funds [Member]		Sep. 30, 2012 Fair Value, Inputs, Level 2 [Member] Canadian Long Bond Pooled Funds [Member]		Dec. 31, 2011 Fair Value, Inputs, Level 2 [Member] Canadian Long Bond Pooled Funds [Member] Predecessor [Member]		Dec. 31, 2012 Fair Value, Inputs, Level 2 [Member] Canadian Bond Pooled Funds [Member]		Sep. 30, 2012 Fair Value, Inputs, Level 2 [Member] Canadian Bond Pooled Funds [Member]		Dec. 31, 2011 Fair Value, Inputs, Level 2 [Member] Canadian Bond Pooled Funds [Member] Predecessor [Member]		Dec. 31, 2012 Fair Value, Inputs, Level 2 [Member] Forward Currency Contracts [Member]		Sep. 30, 2012 Fair Value, Inputs, Level 2 [Member] Forward Currency Contracts [Member]		Dec. 31, 2011 Fair Value, Inputs, Level 2 [Member] Forward Currency Contracts [Member] Predecessor [Member]		Dec. 31, 2012 Fair Value, Inputs, Level 2 [Member] Real Estate [Member]		Sep. 30, 2012 Fair Value, Inputs, Level 2 [Member] Real Estate [Member]		Dec. 31, 2012 Fair Value, Inputs, Level 3 [Member]	Sep. 30, 2012 Fair Value, Inputs, Level 3 [Member]	Dec. 31, 2011 Fair Value, Inputs, Level 3 [Member] Predecessor [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 3 [Member] Cash and Cash Equivalents [Member]	Sep. 30, 2012 Fair Value, Inputs, Level 3 [Member] Cash and Cash Equivalents [Member]	Dec. 31, 2011 Fair Value, Inputs, Level 3 [Member] Cash and Cash Equivalents [Member] Predecessor [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 3 [Member] Global Equity Pooled Funds [Member]		Sep. 30, 2012 Fair Value, Inputs, Level 3 [Member] Global Equity Pooled Funds [Member]		Dec. 31, 2011 Fair Value, Inputs, Level 3 [Member] Global Equity Pooled Funds [Member] Predecessor [Member]		Dec. 31, 2012 Fair Value, Inputs, Level 3 [Member] Canadian Equity Pooled Funds [Member]		Sep. 30, 2012 Fair Value, Inputs, Level 3 [Member] Canadian Equity Pooled Funds [Member]		Dec. 31, 2011 Fair Value, Inputs, Level 3 [Member] Canadian Equity Pooled Funds [Member] Predecessor [Member]		Dec. 31, 2011 Fair Value, Inputs, Level 3 [Member] Balanced Equity Pooled Funds [Member] Predecessor [Member]		Dec. 31, 2012 Fair Value, Inputs, Level 3 [Member] Canadian Long Bond Pooled Funds [Member]		Sep. 30, 2012 Fair Value, Inputs, Level 3 [Member] Canadian Long Bond Pooled Funds [Member]		Dec. 31, 2011 Fair Value, Inputs, Level 3 [Member] Canadian Long Bond Pooled Funds [Member] Predecessor [Member]		Dec. 31, 2012 Fair Value, Inputs, Level 3 [Member] Canadian Bond Pooled Funds [Member]		Sep. 30, 2012 Fair Value, Inputs, Level 3 [Member] Canadian Bond Pooled Funds [Member]		Dec. 31, 2011 Fair Value, Inputs, Level 3 [Member] Canadian Bond Pooled Funds [Member] Predecessor [Member]		Dec. 31, 2012 Fair Value, Inputs, Level 3 [Member] Forward Currency Contracts [Member]		Sep. 30, 2012 Fair Value, Inputs, Level 3 [Member] Forward Currency Contracts [Member]		Dec. 31, 2011 Fair Value, Inputs, Level 3 [Member] Forward Currency Contracts [Member] Predecessor [Member]		Dec. 31, 2012 Fair Value, Inputs, Level 3 [Member] Real Estate [Member]		Sep. 30, 2012 Fair Value, Inputs, Level 3 [Member] Real Estate [Member]
Fair value of plan assets at end of year	233.0	231.9	226.9	2.8	2.7	7.6	85.5	[1]	84.2	[1]	85.8	[1]	45.2	[2]	46.3	[2]	41.9	[2]	0.5	[3]	43.7	[4]	43.4	[4]	45.8	[4]	43.9	[4]	43.5	[4]	44.9	[4]	(0.1)	[5]	0	[5]	0.4	[5]	12.0	[6]	11.8	[6]	133.5	133.2	7.6	2.8	2.7	7.6	85.5	[1]	84.2	[1]	0	[1]	45.2	[2]	46.3	[2]	0	[2]	0	[3]	0	[4]	0	[4]	0	[4]	0	[4]	0	[4]	0	[4]	0	[5]	0	[5]	0	[5]	0	[6]	0	[6]	99.5	98.7	219.3	0	0	0	0	[1]	0	[1]	85.8	[1]	0	[2]	0	[2]	41.9	[2]	0.5	[3]	43.7	[4]	43.4	[4]	45.8	[4]	43.9	[4]	43.5	[4]	44.9	[4]	(0.1)	[5]	0	[5]	0.4	[5]	12.0	[6]	11.8	[6]	0	0	0	0	0	0	0	[1]	0	[1]	0	[1]	0	[2]	0	[2]	0	[2]	0	[3]	0	[4]	0	[4]	0	[4]	0	[4]	0	[4]	0	[4]	0	[5]	0	[5]	0	[5]	0	[6]	0	[6]

[1] This category includes investments in pooled funds that aim to achieve long-term capital growth by investing primarily in equity securities of companies that may be located anywhere in the world, excluding Canada. Fund performance is benchmarked against the MSCI World excluding Canada (Cdn$) Index.

[2] This category includes investments in pooled funds that invest in well-diversified portfolios of equity securities of Canadian companies. Fund performance is benchmarked against the S&P/TSX Capped Composite Index.

[3] This category includes investments in pooled funds that invest in a well-diversified, balanced portfolio of Canadian common stocks, bonds, and money market securities. The fund also holds a portion of its assets in foreign common stock. Fund performance is benchmarked against a customized index consisting of: 35% S&P/TSX Capped Composite Total Return Index, 25% Morgan Stanley Capital International World (Developed Markets) Index excluding Canada, 35% DEX Universe Bond Index and 5% DEX 30-Day T-Bill Index.

[4] This category includes investments in pooled funds that invest in a well-diversified portfolio of fixed income securities issued primarily by Canadian governments and corporations. The duration range of the fund is +/- one year of the benchmark's duration. Fund performance for Canadian bond pooled funds and Canadian long bond pooled funds is benchmarked against the DEX Universe Bond Index and DEX Long-Term Bond Index, respectively.

[5] This category includes foreign currency forward contracts to partially hedge investments in equity and fixed income securities denominated in foreign currencies.

[6] This category includes direct investment in office, industrial, retail and residential real estate.

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LONG-TERM DEBT

12 Months Ended

Dec. 31, 2012

Debt Disclosure [Abstract]

Long-term Debt [Text Block]

18. LONG-TERM DEBT

The company’s long-term debt at December 31 is listed below.

	Successor						Predecessor
	As at December 31			As at September 30			As at December 31
Recourse	2012			2012			2011
Floating rate senior secured notes, due September 2016 (US$35.0 million)	$	33.9		$	33.4		$	–
Senior secured notes, 11.0% due October 2017 (US$250.0 million)		248.7			245.9			–
Senior notes, 7.375% due March 2014 (US$250.0 million)		–			–			256.4
Senior secured notes, 11.0% due December 2016 (US$280.4 million)		–			–			285.2
Modification – difference in carrying value of 8.625% and 11.0% senior secured notes (US$38.3 million) on exchange		–			–			31.2
Class B senior secured notes, 11.0% due December 2016 (US$110.0 million)		–			–			98.5
		282.6			279.3			671.3
Revolving asset-based loan facility of up to $175.0 million due July 2017		24.0			64.0			–
Revolving asset-based loan facility of up to $175.0 million due May 2016		–			–			48.0
Capital lease obligations		8.2			8.5			9.2
		314.8			351.8			728.5
Non-recourse (note 8)
First mortgage bonds, 6.447% due July 2016		95.0			95.0			95.0
Subordinated promissory notes		18.8			18.8			18.8
		113.8			113.8			113.8
Total debt		428.6			465.6			842.3
Less:  current portion		(6.6	)		(6.7	)		(466.8	)
Total long-term debt	$	422.0		$	458.9		$	375.5

Significant changes to long-term debt in 2012

On September 13, 2012 as part of the implementation of the Plan and emergence from creditor protection, the Successor company issued US$250.0 million of new senior secured notes (2017 Notes). The 2017 Notes, issued to holders of the Predecessor company’s 2016 Notes, have a maturity date of October 30, 2017, and bear interest, payable semi-annually, at a rate of 11% per annum in cash or, at the option of the company, 13% per annum payable 7.5% cash and 5.5% PIK. The PIK portion of the interest will consist of newly issued senior secured notes that will be governed by the indentures of the 2017 Notes and will have identical maturity, covenants, interest, collateral and other characteristics as the 2017 Notes. In 2012, the company elected to pay interest due on the 2017 Notes in cash.

In addition to the above, the indentures governing the 2017 Notes make provision for:

– an annual cash flow sweep, subject to a minimum liquidity threshold; any amounts paid to holders of the 2017 Notes from the cash flow sweep will be used to pay down the principal amount of the 2017 Notes at par value;

– the company issuing up to an additional US$75.0 million in principal amount of identical senior secured notes, subject to the consent of holders of 75.0% in principal amount of 2017 Notes if the company’s secured debt to EBITDA ratio, pro forma for the issuance of the additional senior secured notes, exceeds 3.0 times; and

– the company repurchasing the 2017 Notes for 103% of their principal amount until December 15, 2013 and 100% thereafter.

On September 13, 2012 the company secured exit financing consisting of a new ABL Facility and the issuance of Floating Rate Notes. The $175.0 million ABL Facility, which replaced the DIP Credit Facility the company had access to while under creditor protection, matures on the earlier of July 31, 2017, and 90 days prior to maturity of any significant debt. A financial covenant requires the company to maintain a minimum fixed charge coverage ratio of 1.0:1.0 if excess availability under the Facility is below $22 million; at December 31, 2012, the fixed charge coverage ratio was 0.4:1.0 for purposes of this covenant.

The US$35.0 Floating Rate Notes have a maturity date of September 13, 2016, and can be prepaid in whole or in part at any time prior to September 13, 2013, at a redemption price of 103%, on or after September 13, 2013, and prior to September 13, 2014, at a redemption price of 102%, and on or after September 13, 2014, at a redemption price of 100% of the aggregate principal amount outstanding. The Floating Rate Notes bear interest, payable quarterly, at 10.0% plus three-month LIBOR per annum, with a floor set for the floating LIBOR component of 3.0%.

The company secured a DIP Credit Facility, which replaced its former ABL Facility, as part of the creditor protection proceedings. The DIP Credit Facility had an 18-month maturity and a maximum draw of approximately $175 million. Maximum availability was subject to certain terms and conditions that the DIP lenders agreed to provide to Catalyst during the CCAA proceedings. The security for the DIP Credit Facility consisted of a first charge on the accounts receivable, inventory and cash of the company (collectively, the DIP First Charge Collateral) and a second charge on the 2016 Notes First Charge Collateral.

Significant changes to long-term debt in 2011

On December 15, 2011 the company withheld an interest payment of US$21.5 million due on that date on its 2016 Notes, electing to take advantage of a 30-day grace period stipulated in the note indentures. The interest deferral represented a covenant violation on December 31, 2011 under the indentures governing the 2016 Notes. However, the covenant violation didn’t result in a default on the 2016 Notes on December 31, 2011, due to the 30-day grace period that was in force. Per the terms of the company’s former ABL Facility, the covenant violation on the 2016 Notes would have resulted in a cross-default on the ABL Facility had it not been for a 30-day waiver obtained from the ABL lenders. The covenant violation, which remained uncured on the date of the commencement of the creditor protection proceedings on January 31, 2012, resulted in a reclassification of the $414.9 million outstanding on the 2016 Notes and the $48.0 million balance drawn on the ABL Facility on December 31, 2011 as current debt.

On May 31, 2011 the company amended its former ABL Facility, reducing the size of the Facility to $175 million, from $330 million, in part due to working capital levels which have been lower since the closure of the Elk Falls mill. The maturity date was extended to May 31, 2016, from August 13, 2013. In addition, the fixed assets of the Snowflake mill were no longer part of the borrowing base and became first lien security under the company’s 2016 Notes thereby increasing the first lien basket under those notes by $60 million.

On February 11, 2011, the company redeemed the outstanding 8.625% senior unsecured notes of US$26.0 million, due June 2011 (2011 Notes).

Significant terms, conditions and covenants

The indentures governing the company’s senior notes contain customary restrictive covenants, including restrictions on incurring additional indebtedness, certain restricted payments, including dividends and investments in other persons, the creation of liens, sale and leaseback transactions, certain amalgamations, mergers, consolidations and the use of proceeds arising from certain sales of assets and certain transactions with affiliates. Collateral provided on the 2017 Notes consists of a first charge on substantially all of the assets of the company, other than (i) a senior collateral charge on the Floating Rate Notes, and (ii) the ABL First Charge Collateral, as described below (2017 Notes First Charge Collateral), and a second charge on the senior collateral charge on the Floating Rate Notes and the ABL First Charge Collateral. The Floating Rate Notes are secured by a charge on the assets of the company that ranks senior to the lien securing the 2017 Notes (Floating Rate Notes First Charge Collateral). The indentures governing the Floating Rate Notes and 2017 Notes limit the ability of the company to incur debt, other than permitted debt, while the company cannot meet a fixed charge coverage ratio of 2.0:1.0. The company’s fixed charge coverage ratio under these indentures, calculated on a 12-month trailing average, was 0.9:1.0 at December 31, 2012 and 0.4:1.0 at September 30, 2012.

Under the indentures for the Floating Rate Notes and the 2017 Notes, permitted debt includes, among other things, (a) debt arising under the ABL Facility, subject to certain limitations; (b) debt under the Floating Rate Notes, additional senior secured notes issued under the PIK interest option, and the issuance of up to US$75.0 million additional senior secured notes, subject to certain limitations; (c) purchase money debt and capitalized lease obligations in an aggregate principal amount outstanding not to exceed $15.0 million; (d) a general basket of $25.0 million; (e) debt incurred under interest rate agreements, currency agreements, and reimbursement obligations related to undrawn standby letters of credit, subject to certain limitations; (f) debt in respect of completion guarantees, bid, performance, surety or appeal bonds, subject to certain limitations; (g) a $5.0 million basket for accommodation guarantees, trade or standby letters of credit, performance bonds, bankers’ acceptances and surety bonds; (h) debt equal to 200.0% of the net cash proceeds from the issue or sale of capital stock or capital contributions, subject to certain limitations; and (i) debt incurred as full or partial payment of any asset acquisition, or if debt constitutes acquired debt, subject to, among other things, the company’s consolidated fixed charge coverage ratio being equal or higher after the asset acquisition than immediately before. The company cannot make any restricted payments, including paying any dividends, except to the extent the balance in its restricted payments basket is positive. The restricted payments basket under the 2017 Notes was negative $33.6 million as at December 31, 2012 and $nil million as at September 30, 2012.

The security for the ABL Facility consists of a first charge on accounts receivable, inventory and cash of the company (ABL First Charge Collateral) and a second charge on the 2017 Notes First Charge Collateral. Availability under the ABL Facility is determined by a borrowing base calculated primarily on eligible accounts receivable and eligible inventory, less certain reserves. The borrowing base at December 31, 2012, included reserves for a landlord waiver reserve in respect of rent of approximately $2.3 million, a pension reserve not exceeding the sum of normal cost pension contributions, special and catch-up payments and any other payments in respect of a Canadian pension plan that are past due of approximately $1.1 million, a reserve for credit insurance deductibles of $2.0 million, a reserve of $1.3 million for employee source deductions, a reserve for workers compensation of $0.3 million, and a purchasing card reserve of $0.2 million. The borrowing base at September 30, 2012, included reserves for a landlord waiver reserve in respect of rent of approximately $2.3 million, a pension reserve not exceeding the sum of normal cost pension contributions, special and catch-up payments and any other payments in respect of a Canadian pension plan that are past due of approximately $2.7 million, a reserve for credit insurance deductibles of $2.0 million, a reserve of $1.3 million for employee source deductions, and a reserve for workers compensation of $0.3 million.

On December 31, 2012 the company had $78.9 million available under the ABL Facility after deducting outstanding drawings of $24.0 million and outstanding letters of credit of $22.3 million, before potential application of the springing fixed charge coverage ratio. On September 30, 2012, the company had $82.2 million available under the ABL Facility after deducting outstanding drawings of $64.0 million and outstanding letters of credit of $17.8 million, before potential application of the springing fixed charge coverage ratio. The company also had cash on hand of $18.5 million on December 31, 2012 and $12.6 million on September 30, 2012, and restricted cash of $3.0 million on December 31, 2012 and $6.4 million on September 30, 2012.

The company was in compliance with its covenants under the ABL Facility and under each of the indentures governing its outstanding senior notes on December 31, 2012 and September 30, 2012.

Non-recourse debt is debt owed by the company’s subsidiary PREI. The company has a 50.001% interest in PREI, and consolidates 100% of it as PREI is a VIE in which the company is the primary beneficiary.

Scheduled total debt repayments

	Recourse debt		Non-recourse debt (PREI)
2013	$	6.6	$	–
2014		1.6		–
2015		–		–
2016		34.8		95.0
2017		272.7		–
Thereafter		–		18.8
	$	315.7	$	113.8

The company’s long-term debt is recorded at amortized cost. The following table provides information about management’s best estimate of the fair value of the company’s debt:

	Successor								Predecessor
	December 31, 2012				September 30, 2012				December 31, 2011
	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Recourse	$	314.8	$	262.5	$	351.8	$	351.8	$	728.5	$	279.5
Non-recourse		113.8		113.8		113.8		113.8		113.8		124.7

The fair value of the company’s long-term recourse debt related to its senior notes is determined based on quoted market prices of identical debt instruments. The fair value of the company’s recourse debt related to the ABL Facility and non-recourse debt related to the first mortgage bonds is measured by discounting the respective cash flows at quoted market rates for similar debt having the same maturity. In measuring fair value, the company incorporates credit valuation adjustments to appropriately reflect its own non-performance risk, where appropriate.

XML

RESTRICTED CASH (Details Textual) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012
Elk Falls Mill [Member]
Assets Held-in-trust, Current	0.5
Letter Of Credit [Member]
Cash Collateral for Borrowed Securities	0.2
Percentage Of Cash Collateral	105.00%

XML

ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS (Tables)

12 Months Ended

Dec. 31, 2012

Disclosure Of Assets Held For Sale [Abstract]

Disclosure Of Assets Held-For-Sale [Table Text Block]

A summary of major classes of assets and liabilities classified as held for sale is as follows:

	Successor
	December 31, 2012		September 30, 2012
Cash and cash equivalents	$	1.9	$	0.4
Restricted cash		2.3		2.7
Accounts receivable		0.5		17.1
Inventories		0.6		5.4
Prepaids and other		–		0.5
Property, plant and equipment		24.7		25.8
Other assets		4.3		4.3
Assets held for sale		34.3		56.2
Accounts payable and accrued liabilities		15.2		14.8
Liabilities associated with assets held for sale	$	15.2	$	14.8

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]

As disclosed previously, the operations of the Snowflake mill were classified as a discontinued operation. A breakdown of loss from discontinued operations, net of tax is as follows:

	Successor			Predecessor
	Three months ended			Nine months ended			Years ended
	December 31			September 30			December 31
	2012			2012			2011			2010
Sales	$	4.5		$	142.8		$	181.8		$	177.2
Cost of sales, excluding depreciation and amortization		(5.0	)		(142.4	)		(202.9	)		(183.5	)
Depreciation and amortization		–			–			(7.0	)		(9.6	)
Impairment, severances and other closure costs		(11.0	)		(8.7	)		(161.8	)		–
Restructuring costs		(1.1	)		–			–			–
Interest expense, net		–			(0.1	)		(0.2	)		(0.1	)
Other income (expense), net		0.7			–			(4.4	)		–
Reorganization items, net (note 6)		(1.0	)		4.8			–			–
Income tax expense		–			–			(1.0	)		(3.5	)
Loss from discontinued operations, net of tax	$	(12.9	)	$	(3.6	)	$	(195.5	)	$	(19.5	)

Schedule Of Components Of Impairment, Severances and Other Closure Costs [Table Text Block]

The following tables provide the components of impairment, severances and other closure costs for the three months ended December 31, 2012 and the nine months ended September 30, 2012:

	Three months ended December 31 2012 (successor)
	Amount
Severances and other closure costs
Severances	$	1.6
Withdrawal liability from multi-employer plan		8.2
Other closure costs		1.2
	$	11.0

	Nine months ended September 30 2012 (predecessor)
	Amount
Impairment
Operating and maintenance supplies and spare parts	$	0.5
Raw materials		0.6
		1.1
Severances and other closure costs
Severances		3.2
Withdrawal liability from multi-employer plan		3.4
Other closure costs		1.0
	$	8.7

XML

LONG-TERM DEBT (Details 1) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012
Recourse Debt [Member]
2013	6.6
2014	1.6
2015	0
2016	34.8
2017	272.7
Thereafter	0
Long-term Debt	315.7
Non Recourse Debt [Member]
2013	0
2014	0
2015	0
2016	95.0
2017	0
Thereafter	18.8
Long-term Debt	113.8

XML

GUARANTEES AND INDEMNITIES

12 Months Ended

Dec. 31, 2012

Guarantees and Indemnities [Abstract]

Guarantees and Indemnities [Text Block]

33. GUARANTEES AND INDEMNITIES

The company has, over time, provided various indemnities with respect to tax, environment, and employment liabilities, as well as general representations and warranties on sales of portions of its business, acquisitions, and commodity contracts. Significant existing indemnities are listed below.

(a) In connection with the acquisition of the paper recycling plant in Coquitlam, B.C. in December 2003, the company provided indemnities with respect to environmental matters (other than pre-existing environmental conditions) under the lease of the land and buildings for all costs, claims and damages in the event of a release of any hazardous substances on the property by the company or a breach by the company of any of the environmental covenants under the lease or any environmental laws and an indemnity with respect to shares that were issued to the vendors as part of the purchase price. The company does not expect any claims under these indemnities given that the company disclaimed its liabilities under the lease under the CCAA process and that all of the company’s outstanding shares as at September 12, 2012 were cancelled under the CCAA process.

(b) The company has entered into a building lease agreement whereby it has agreed to continue making the prescribed lease payments directly to the financial institution holding the mortgage on the building in the event the lessor is no longer able to meet its contractual obligations (note 8). The value of the mortgage was $3.0 million on December 31, 2012 and $3.4 million on September 30, 2012 (2011 – $4.8 million). This agreement does not increase the company’s liability beyond the obligation under the building lease.

At December 31, 2012, the company is unable to estimate the potential maximum liabilities for these types of indemnification guarantees as the amounts are contingent upon the outcome of future events, the nature and likelihood of which cannot be reasonably estimated at this time. Accordingly, no provisions have been recorded. These indemnifications have not resulted in a significant expense in the past.

XML

LONG-TERM DEBT (Details Textual)
In Millions, unless otherwise specified

1 Months Ended

9 Months Ended

12 Months Ended

12 Months Ended

12 Months Ended

May 31, 2011

CAD

Sep. 30, 2012

CAD

Dec. 31, 2012

USD ($)

Dec. 31, 2012

CAD

Dec. 31, 2011

CAD

Dec. 15, 2011

USD ($)

Dec. 31, 2012

Until December 15, 2013 [Member]

Dec. 31, 2012

After December 15, 2013 [Member]

May 31, 2011

Amended Former Abl Facility [Member]

CAD

Dec. 31, 2012

Implementation Of Amended Plan [Member]

Sep. 13, 2012

Implementation Of Amended Plan [Member]

USD ($)

Dec. 31, 2012

Dip Credit Facility [Member]

CAD

Dec. 31, 2011

Abl Facility [Member]

CAD

May 31, 2011

Abl Facility [Member]

CAD

Dec. 31, 2012

Loan Facility July 2017 [Member]

CAD

Dec. 31, 2012

Loan Facility May 2016 [Member]

CAD

Dec. 31, 2012

Floating Rate Senior Secured Notes [Member]

USD ($)

Dec. 31, 2012

Floating Rate Senior Secured Notes [Member]

CAD

Sep. 30, 2012

Floating Rate Senior Secured Notes [Member]

CAD

Dec. 31, 2012

Senior Secured Notes Due October 2017 [Member]

USD ($)

Dec. 31, 2012

Senior Secured Notes Due October 2017 [Member]

CAD

Sep. 30, 2012

Senior Secured Notes Due October 2017 [Member]

CAD

Dec. 31, 2012

Senior Notes [Member]

USD ($)

Dec. 31, 2012

Senior Notes [Member]

CAD

Sep. 30, 2012

Senior Notes [Member]

CAD

Dec. 31, 2012

Senior Secured Notes Due December 2016 [Member]

USD ($)

Dec. 31, 2012

Senior Secured Notes Due December 2016 [Member]

CAD

Sep. 30, 2012

Senior Secured Notes Due December 2016 [Member]

CAD

Dec. 31, 2012

Senior Notes Two [Member]

USD ($)

Dec. 31, 2012

Senior Notes Two [Member]

CAD

Sep. 30, 2012

Senior Notes Two [Member]

CAD

Dec. 31, 2012

Senior Notes Two [Member]

Minimum [Member]

Dec. 31, 2012

Senior Notes Two [Member]

Maximum [Member]

Dec. 31, 2012

Class B Senior Secured Notes [Member]

USD ($)

Dec. 31, 2012

Class B Senior Secured Notes [Member]

CAD

Sep. 30, 2012

Class B Senior Secured Notes [Member]

CAD

Feb. 11, 2011

Senior Unsecured Notes Due June 2011 [Member]

USD ($)

Line of Credit Facility, Maximum Borrowing Capacity

330

175

175

175

175

Line of Credit, Current

48.0

Recourse Debt Secured

279.3

282.6

35.0

0

33.4

250.0

248.7

245.9

250.0

0

0

280.4

0

0

38.3

0

0

110.0

0

0

Debt Instrument, Interest Rate, Effective Percentage

11.00%

11.00%

11.00%

11.00%

8.625%

11.00%

11.00%

11.00%

Debt Instrument Redeemed Percentage

8.625%

Current portion of long-term debt

6.7

6.6

26.0

Secured pre-petition debt

250.0

Debt Instrument, Interest Rate Terms

The 2017 Notes, issued to holders of the Predecessor company’s 2016 Notes, have a maturity date of October 30, 2017, and bear interest, payable semi-annually, at a rate of 11% per annum in cash or, at the option of the company, 13% per annum payable 7.5% cash and 5.5% PIK. The PIK

Percentage Of Repurchase Of Notes On Principal Amount

103.00%

100.00%

Recourse Debt Revolving Credit 1

64.0

24.0

Recourse Debt Revolving Credit 2

0

0

Maximum Issuance Of Additional Senior Secured Notes Description

the company issuing up to an additional US$75.0 million in principal amount of identical senior secured notes, subject to the consent of holders of 75.0% in principal amount of 2017 Notes if the company's secured debt to EBITDA ratio, pro forma for the issuance of the additional senior secured notes, exceeds 3.0 times

the company issuing up to an additional US$75.0 million in principal amount of identical senior secured notes, subject to the consent of holders of 75.0% in principal amount of 2017 Notes if the company's secured debt to EBITDA ratio, pro forma for the issuance of the additional senior secured notes, exceeds 3.0 times

Maximum Issuance Of Additional Senior Secured Notes

75.0

Debt Instrument, Covenant Description

A financial covenant requires the company to maintain a minimum fixed charge coverage ratio of 1.0:1.0 if excess availability under the Facility is below $22 million; at December 31, 2012, the fixed charge coverage ratio was 0.4:1.0 for purposes of this covenant.

A financial covenant requires the company to maintain a minimum fixed charge coverage ratio of 1.0:1.0 if excess availability under the Facility is below $22 million; at December 31, 2012, the fixed charge coverage ratio was 0.4:1.0 for purposes of this covenant.

Debt Instrument Floating Rate and Redemption Price Description

The US$35.0 Floating Rate Notes have a maturity date of September 13, 2016, and can be prepaid in whole or in part at any time prior to September 13, 2013, at a redemption price of 103%, on or after September 13, 2013, and prior to September 13, 2014, at a redemption price of 102%, and on or after September 13, 2014, at a redemption price of 100% of the aggregate principal amount outstanding.

The US$35.0 Floating Rate Notes have a maturity date of September 13, 2016, and can be prepaid in whole or in part at any time prior to September 13, 2013, at a redemption price of 103%, on or after September 13, 2013, and prior to September 13, 2014, at a redemption price of 102%, and on or after September 13, 2014, at a redemption price of 100% of the aggregate principal amount outstanding.

Interest Payable

21.5

Debt Instrument, Description of Variable Rate Basis

The Floating Rate Notes bear interest, payable quarterly, at 10.0% plus three-month LIBOR per annum, with a floor set for the floating LIBOR component of 3.0%.

The Floating Rate Notes bear interest, payable quarterly, at 10.0% plus three-month LIBOR per annum, with a floor set for the floating LIBOR component of 3.0%.

Reclassification Outstanding On Debt

414.9

Increased First Lien Basket Under Notes

60

Fixed Charge Coverage Ratio Of Floating Rate Notes

2.0:1.0

2.0:1.0

Fixed Charge Coverage Ratio Calculated On Trailing Average

0.4:1.0

0.9:1.0

0.9:1.0

Maximum Issuance Of Senior Secured Notes

75.0

Maximum Purchase Money Debt and Capitalized Lease Obligations Principal Amount Outstanding

15.0

General Basket Amount

25.0

Basket For Accommodation Guarantees

5.0

Percentage Of Net Cash Proceeds From Issue Of Capital Stock

200.00%

200.00%

Landlord Waiver Reserve In Respect Of Rent

2.3

Canadian Pension Plan Past Due

2.7

1.1

Reserve For Credit Insurance Deductibles

2.0

2.0

Reserve For Employee Source Deductions

1.3

1.3

Reserve For Workers Compensation

0.3

0.3

Purchasing Card Reserve

0.2

Borrowing under the ABL Facility

82.2

78.9

Line Of Credit Facility Outstanding Drawings

64.0

24.0

Line of Credit Facility, Amount Outstanding

17.8

22.3

Cash

12.6

18.5

Restricted cash (note 10)

3.7

0.7

Noncontrolling Interest, Ownership Percentage by Parent

50.00%

50.00%

Consolidated Percentage Of Subsidiary

100.00%

100.00%

Long-term debt

458.90

422.00

33.60

0

$ 26.00

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Net earnings (loss)	(36.7)
Employee future benefits liability adjustment
Gross amount	6.6
Tax (expense) recovery	0
Net amount	6.6
Reclassification of amortization of employee future benefits
Gross amount	0
Tax (expense) recovery	0
Net amount	0
Unrealized net gain on cash flow revenue hedges
Gross amount	0
Tax (expense) recovery	0
Net amount	0
Reclassification of net (gain) loss on cash flow revenue hedges
Gross amount	0
Tax (expense) recovery	0
Net amount	0
Unrealized gain (loss) on interest rate hedges
Gross amount	0
Tax (expense) recovery	0
Net amount	0
Other comprehensive income (loss) from continuing operations, net of taxes	6.6
Employee future benefits liability adjustment
Gross amount	0
Tax (expense) recovery	0
Net amount	0
Reclassification of amortization of employee future benefits
Gross amount	0
Tax (expense) recovery	0
Net amount	0
Foreign currency translation adjustments, net of related hedging activities
Gross amount	0
Tax (expense) recovery	0
Net amount	0
Other comprehensive income (loss) from discontinued operations, net of taxes	0
Total comprehensive income (loss)	(30.1)
Comprehensive (income) loss attributable to non-controlling (interest) deficit:
Net (earnings) loss attributable to non-controlling interest (note 8)	1.5
Other comprehensive (income) loss, net of taxes	0
Comprehensive (income) loss attributable to non-controlling interest	1.5
Comprehensive income (loss) attributable to the company	(28.6)
Predecessor [Member]
Net earnings (loss)		650.3	(976.6)	(398.2)
Employee future benefits liability adjustment
Gross amount		(32.0)	(47.0)	16.9
Tax (expense) recovery		0	0.3	(4.1)
Net amount		(32.0)	(46.7)	12.8
Reclassification of amortization of employee future benefits
Gross amount		3.9	5.0	2.9
Tax (expense) recovery		(0.9)	(1.6)	(1.0)
Net amount		3.0	3.4	1.9
Unrealized net gain on cash flow revenue hedges
Gross amount		0	0	5.8
Tax (expense) recovery		0	0	(1.6)
Net amount		0	0	4.2
Reclassification of net (gain) loss on cash flow revenue hedges
Gross amount		0	(1.4)	(15.1)
Tax (expense) recovery		0	0.4	4.2
Net amount		0	(1.0)	(10.9)
Unrealized gain (loss) on interest rate hedges
Gross amount		0	0	0.3
Tax (expense) recovery		0	0	(0.1)
Net amount		0	0	0.2
Other comprehensive income (loss) from continuing operations, net of taxes		(29.0)	(44.3)	8.2
Employee future benefits liability adjustment
Gross amount		0.3	0.1	(0.5)
Tax (expense) recovery		0	(0.1)	0.2
Net amount		0.3	0	(0.3)
Reclassification of amortization of employee future benefits
Gross amount		0	0.2	0.2
Tax (expense) recovery		0	(0.1)	(0.1)
Net amount		0	0.1	0.1
Foreign currency translation adjustments, net of related hedging activities
Gross amount		4.0	0.4	(0.4)
Tax (expense) recovery		0	0.5	(0.9)
Net amount		4.0	0.9	(1.3)
Other comprehensive income (loss) from discontinued operations, net of taxes		4.3	1.0	(1.5)
Total comprehensive income (loss)		625.6	(1,019.9)	(391.5)
Comprehensive (income) loss attributable to non-controlling (interest) deficit:
Net (earnings) loss attributable to non-controlling interest (note 8)		(31.9)	2.6	1.3
Other comprehensive (income) loss, net of taxes		0	0	(0.1)
Comprehensive (income) loss attributable to non-controlling interest		31.9	2.6	1.2
Comprehensive income (loss) attributable to the company		593.7	(1,017.3)	(390.3)

XML

VARIABLE INTEREST ENTITIES (Details) (CAD) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2012		Sep. 30, 2012		Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009	Dec. 31, 2008
Cost of sales, excluding depreciation and amortization	245.6
Depreciation and amortization	12.9
Costs and Expenses	266.2
Operating earnings	(5.7)
Interest expense	(11.6)
Other income (expense), net	0.1
Reorganization items, net (note 6)	(3.2)
Income tax recovery (expense)	(0.2)
Net earnings (loss)	(36.7)
Other comprehensive income	6.6
Total comprehensive income (loss)	(30.1)
Predecessor [Member]
Cost of sales, excluding depreciation and amortization			718.0		970.7		930.1		890.0	1,456.5
Depreciation and amortization			23.4		112.4		119.3		137.3	159.8
Costs and Expenses			772.9		1,784.2		1,403.0		1,107.4	1,844.3
Operating earnings			24.8		(704.5)		(351.6)		(29.7)	(147.4)
Interest expense			(60.3)		(73.2)		(71.9)		(69.1)	(74.8)
Other income (expense), net			(2.6)		(2.1)		(2.6)		(28.6)	(15.7)
Reorganization items, net (note 6)			666.9		0		0		0	0
Income tax recovery (expense)			1.1		8.4	[1]	19.8	[2]	23.1	90.7
Net earnings (loss)			650.3		(976.6)		(398.2)		(5.6)	(219.0)
Other comprehensive income			(24.7)		(43.3)		6.7
Total comprehensive income (loss)			625.6		(1,019.9)		(391.5)
Powell River Energy Inc [Member]
Sales - affiliate	4.7	[3]
Cost of sales, excluding depreciation and amortization	2.1
Depreciation and amortization	1.9
Costs and Expenses	4.0
Operating earnings	0.7
Interest expense	(2.4)
Interest expense - affiliate	(0.9)	[3]
Other income (expense), net	(0.3)
Reorganization items, net (note 6)	(1.3)
Income tax recovery (expense)	1.1
Net earnings (loss)	(3.1)
Other comprehensive income	0
Total comprehensive income (loss)	(3.1)	[4]
Powell River Energy Inc [Member] | Predecessor [Member]
Sales - affiliate			15.6	[3]	23.4	[3]	20.5	[3]
Cost of sales, excluding depreciation and amortization			5.1		7.0		6.5
Depreciation and amortization			3.9		13.4		7.4
Costs and Expenses			9.0		20.4		13.9
Operating earnings			6.6		3.0		6.6
Interest expense			(7.3)		(8.9)		(8.8)
Interest expense - affiliate			(2.5)	[3]	(2.4)	[3]	(2.1)	[3]
Other income (expense), net			(4.0)		0		0.1
Reorganization items, net (note 6)			55.6		0		0
Income tax recovery (expense)			(11.9)		3.0		1.6
Net earnings (loss)			36.5		(5.3)		(2.6)
Other comprehensive income			0.1		0.1		0.2
Total comprehensive income (loss)			36.6	[4]	(5.2)	[4]	(2.4)	[4]

[1] Included $8.4 million income tax recovery related to continuing operations and $1.0 million income tax expense related to discontinued operations

[2] Included $19.8 million income tax recovery related to continuing operations and $3.5 million income tax expense related to discontinued operations

[3] Balances with Catalyst Paper Energy Holdings Inc., a Subsidiary of Catalyst Paper Corporation.

[4] 50% is included in the company's non-controlling interest (deficit) balances.

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CREDITOR PROTECTION PROCEEDINGS

12 Months Ended

Dec. 31, 2012

Creditor Protection Proceedings [Abstract]

Creditor Protection Proceedings [Text Block]

2. CREDITOR PROTECTION PROCEEDINGS

Reorganization process

The Canadian Court and U.S. Court issued a variety of orders throughout the restructuring process. These orders include, among other things, authorization to (a) make payments relating to certain employees’ pre-petition wages, salaries and benefit programs in the ordinary course of business; (b) ensure the continuation of existing cash management systems; (c) honour certain ongoing customer obligations; and (d) enter into a DIP Credit Agreement that effectively replaced the former ABL Facility.

The terms of the Initial Order named PricewaterhouseCoopers Inc. (PwC) as the court-appointed monitor (the Monitor), who assisted the company in formulating a restructuring plan.

Shortly after the commencement of the creditor protection proceedings, the company began notifying all known creditors regarding these filings. Pursuant to the Initial Order, and subject to certain exceptions, the continuation of any judicial or administrative proceedings or other actions against the company or its property to recover, collect or secure a pre-petition claim were automatically stayed. Most creditor actions to obtain possession of the company’s property, or to create or enforce any lien against the company’s property, or to collect pre-petition amounts owed or otherwise exercise rights or remedies with respect to a pre-petition claim were enjoined.

The company reached new labour agreements, effective from May 1, 2012 to April 30, 2017, with all six union locals at its Crofton, Port Alberni and Powell River mills. The new labour agreements were entered into with the Communications, Energy and Paperworkers Union of Canada (CEP) locals 1, 76, 592, 686 and 1132 and the Pulp, Paper and Woodworkers Union of Canada (PPWC) local 2. Specific terms of the new labour agreements include a 10% reduction in hourly wage rates, various adjustments to vacation, health benefits and work rules, maintaining hourly retiree health benefits, and providing for no wage inflation for the first three years and 2% increases in the fourth and fifth year that these agreements are in effect.

On March 9, 2012, the company entered into a Restructuring and Support Agreement (RSA) with certain holders of its 11% senior secured notes due 2016 (2016 Notes) and its 7.375% notes due 2014 (2014 Notes) that outlined a plan of arrangement under the CCAA. On May 15, 2012, the company announced that the original terms of the plan of arrangement, as disclosed in the interim consolidated financial statements for the three months ended March 31, 2012, had been amended.

On May 23, 2012, the company announced that it did not receive the necessary creditor approval for its amended plan of arrangement. Approval of not less than 66 2/3% of the principal amount of each creditor class voting on the plan was required. While 99.5% of the principal amount of the secured creditor class voted in favour of the plan, only 64% of the principal amount of the unsecured creditor class voted in favour. With the amended plan of arrangement not being approved, the company was required to commence a sales process in accordance with certain agreed sale and investor solicitation procedures (SISP).

On June 14, 2012, the company announced a second amended plan of arrangement after receiving consent from a requisite number of holders of 2016 Notes to move forward to a vote. Proposed changes under the Plan included the compromise of certain extended health benefits, modifications to the salaried pension plan and application for additional solvency deficit funding relief. On June 25, 2012 the company announced that it had received the necessary creditor approval for the Plan. Approval of more than 99% of secured and unsecured creditors was received. The company also received confirmation of regulatory approval by provincial order in council of the proposed modifications to the salaried pension plan and the application for additional funding relief. The Court sanctioned the Plan on June 28, 2012 and the US Court in Delaware confirmed the Plan under the Chapter 15 process in a confirmation hearing on July 27, 2012.

Emergence from creditor protection proceedings

The Plan became effective on September 12, 2012 and the restructuring under the Plan completed on September 13, 2012. Upon implementation of the Plan, the company was reorganized through the consummation of several transactions pursuant to which, among other things:

§ The company’s operations were continued in substantially the same form.

§ Holders of the Predecessor company’s 2016 Notes exchanged their US$390.4 million aggregate principal amount plus accrued and unpaid interest for:

- US$250.0 million aggregate principal amount of senior secured notes due in 2017 that bear interest, at the option of the company, at a rate of 11% per annum in cash or 13% per annum payable 7.5% cash and 5.5% payment-in-kind (PIK); and

- 14.4 million new common shares, being approximately 100% of the company’s issued and outstanding common shares, subject to dilution for (i) the issuance of common shares to unsecured creditors who made an equity election pursuant to the terms of the Plan, and (ii) a new management incentive plan.

§ Holders of the Predecessor company’s 2014 Notes exchanged their US$250.0 million aggregate principal plus accrued and unpaid interest for:

- their pro rata share (calculated by reference to the aggregate amount of all claims of unsecured creditors allowed under the Plan) of 50% of the net proceeds following the sale of Catalyst Paper’s interest in Powell River Energy Inc. and Powell River Energy Limited Partnership (PREI Proceeds Pool), or

- if an equity election was made, their pro rata share of 600,000 new common shares (the Unsecured Creditor Share Pool).

§ General creditors exchanged their general unsecured claims for:

- their pro rata share of the PREI Proceeds Pool; or

- if an equity election was made, their pro rata share of the Unsecured Creditor Share Pool; or

- if a general unsecured claim was equal to or less than $10,000, or if a valid cash election was made and such creditor elected to reduce their claim to $10,000, cash in an amount equal to 50% of the creditor’s allowed claim (Cash Convenience Pool).

§ All common shares and stock options of the Predecessor company outstanding prior to the reorganization were cancelled for no consideration and holders of such common shares did not receive any distribution under the Plan.

The company distributed $1.0 million to unsecured creditors in November 2012 as full and final settlement of claims comprising the Cash Convenience Pool. The company issued 127,571 common shares to unsecured creditors in December as full and final settlement of claims comprising the Unsecured Creditor Share Pool. The company agreed to the sale of its interest in PREI for proceeds of $33.0 million, expects to complete the sale in the first quarter of 2013, and will subsequently pay out the PREI Proceeds Pool to applicable unsecured creditors. The company is required under the Plan to offer its portion of the proceeds from the sale of PREI to the holders of Floating Rate Notes (see note 8, Variable interest entities).

Exit Financing

On September 13, 2012, the company entered into a new ABL Facility and issued new Floating Rate Notes. The $175.0 million ABL Facility, which was a pre-condition for the company to implement the Plan and exit from creditor protection, matures on the earlier of July 31, 2017, and 90 days prior to maturity of any significant debt. The Floating Rate Notes, which mature on September 13, 2016, were issued for US$35 million. The terms and covenants of the ABL Facility and the Floating Rate Notes are disclosed in note 18, Long-term debt.

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OTHER LONG-TERM OBLIGATIONS (Tables)

12 Months Ended

Dec. 31, 2012

Other Liabilities Noncurrent Disclosure [Abstract]

Schedule Of Other Liabilities Noncurrent [Table Text Block]

The components of other long-term obligations are as follows:

	Successor				Predecessor
	As at December 31		As at September 30		As at December 31
	2012		2012		2011
Restructuring (note 24)	$	–	$	–	$	0.1
Environmental and remedial		5.8		5.9		8.0
Lease obligation – paper recycling – long term		–		–		7.8
Other		3.1		3.1		3.3
	$	8.9	$	9.0	$	19.2

Schedule of Asset Retirement Obligations [Table Text Block]

The following table provides a reconciliation of the company’s asset retirement obligations.

	Successor			Predecessor
	Three months ended			Nine months ended			Year ended
	December 31			September 30			December 31
	2012			2012			2011
Balance, beginning of period	$	6.2		$	8.5		$	7.9
Liabilities settled		(0.1	)		–			(0.7	)
Liabilities derecognized		–			(2.3	)		–
Accretion expense		–			–			0.1
Revised estimates of future cash flows		–			–			1.2
Balance, end of period	$	6.1		$	6.2		$	8.5

Asset Retirement Obligations Classification [Table Text Block]

The balance sheet classification for asset retirement obligations is as follows:

	Successor				Predecessor
	As at December 31		As at September 30		As at December 31
	2012		2012		2011
Other long-term obligations	$	5.8	$	5.9	$	8.0
Accounts payable and accrued liabilities		0.3		0.3		0.5
	$	6.1	$	6.2	$	8.5

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CREDITOR PROTECTION PROCEEDINGS RELATED DISCLOSURES (Details 5) (CAD) In Millions, unless otherwise specified			9 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Sep. 30, 2012 Fresh Start Accounting Adjustments [Member]
Prepaids and other	8.9	13.0	(7.1)	[1]
Property, plant and equipment	611.60	614.10	257.47
Assets held for sale	34.30	56.20	12.07
Goodwill	56.70	56.70	56.77
Deferred income tax assets		0	(2.5)	[1]
Liabilities associated with assets held for sale	15.20	14.80	(2.30)	[1]
Deferred credits		0	(9.6)	[1]
Gain due to fresh start accounting adjustments			328.4

[1] Please refer "Credit Or Protection Proceedings Related Disclosures (Details 5)"

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LONG-TERM DEBT (Details 2) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011 Predecessor [Member]
Carrying Value, Recourse Debt	314.8	351.8	728.5
Carrying Value, Non-Recourse Debt	113.8	113.8	113.8
Fair Value, Recourse Debt Fair Value	262.5	351.8	279.5
Fair Value, Non-Recourse Debt Fair Value	113.8	113.8	124.7

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COMMITMENTS (Tables)

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

The company has entered into operating leases for property, plant and equipment. The minimum future payments under various operating leases in each of the years ended December 31 are listed below.

2013	$	6.0
2014		4.3
2015		1.7
2016		1.7
2017		1.6
Subsequent years		0.7
	$	16.0

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EMPLOYEE FUTURE BENEFITS

12 Months Ended

Dec. 31, 2012

Compensation and Retirement Disclosure [Abstract]

Compensation and Employee Benefit Plans [Text Block]

19. EMPLOYEE FUTURE BENEFITS

The company maintains pension benefit plans for all salaried employees, which include defined benefit and defined contribution segments.  Employees hired subsequent to January 1, 1994 enroll in the defined contribution segment. Effective January 1, 2010, employees in the defined benefit plan ceased to accrue future benefits under the defined benefit segment of the plan and began to participate in the defined contribution segment of the plan. The company also maintains pension benefits for former hourly employees that are not covered by union pension plans. Unionized employees of the company are members of multi-employer industry-wide pension plans to which the company contributes a predetermined amount per hour worked by an employee.

The company provides other benefit plans consisting of provincial medical plan premiums, life insurance, extended health care and dental benefits to employees.  In February 2010, the company announced changes to its benefit plans for current retirees which included the replacement of the current extended health benefits program with provision of the lower cost program available to employees in active employment. The reduction in the benefit obligation resulting from the plan changes of $21.3 million was recognized as a negative plan amendment in 2010. The company also made the decision to permanently close Elk Falls mill in 2010 (note 7) and the related reduction in the benefit obligation from the plan curtailment amounting to $9.7 million was recognized with a corresponding increase to other comprehensive income.

Certain extended health benefits with an actuarial value of $24.8 million as of September 30, 2012 were compromised under the Plan.

Defined contribution plans

For the defined contribution segment, the company’s contributions are based on a percentage of an employee’s earnings with the company’s funding obligations being satisfied upon crediting contributions to an employee’s account. The pension expense under the defined contribution payment is equal to the company’s contribution.

Defined benefit plans

The defined benefit segment provides a pension based on years of service and earnings. Benefits accrued under the defined benefit segment of the plan for service prior to January 1, 2010 will remain in the defined benefit plan and will continue to be eligible for future salary growth and early retirement subsidies.

The company offered members of its defined benefit pension plan for salaried employees a one-time reduced lump-sum payment option as full settlement of their entitlements under the plan. Members had to make their elections by no later than December 15, 2012, and have until June 30, 2013 to revoke such elections in favour of continuing to receive retirement benefits in the form of a monthly pension. As of March 5, 2013, the company had received elections for 42% of the total membership and 48% of the total solvency liability. As of March 5, 2013, the future impact of the portability election on the projected benefit obligations and fair value of plan assets of the company are impossible to estimate due to the revocation option, and therefore, were not reflected in the actuarial valuation of projected benefit obligations and fair value of plan assets as of December 31, 2012.

The company measured the fair value of plan assets and the projected benefit obligations of the Successor company for accounting purposes on December 31, 2012 and September 30, 2012 with the assistance of its independent actuaries. Changes in the funding status of these plans not recognized in net periodic benefit costs were reflected as an adjustment to Accumulated other comprehensive income (loss). Subsequent to the closure of the Snowflake mill, the company no longer has a projected benefit obligation under the Snowflake Salaried Retiree Medical and Life Insurance Plan.

Components of net periodic benefit cost recognized

	Successor			Predecessor
	Three months ended December 31			Nine months ended September 30			Years ended December 31
Pension benefit plans	2012			2012			2011			2010
Defined benefit plan
Service cost for the period	$	0.2		$	1.0		$	1.4		$	2.1
Interest cost		3.7			12.3			17.7			20.5
Expected return on assets		(3.6	)		(11.2	)		(16.5	)		(16.2	)
Recognition (reversal) of downsizing program		–			(0.2	)		1.7			–
Amortization of unrecognized items:
Actuarial (gains) losses		–			6.4			7.9			6.3
Prior service costs		–			0.3			0.4			0.4
		0.3			8.6			12.6			13.1
Defined contribution plan
Service cost for the period		0.7			2.4			3.4			3.5
Multi-employer industry-wide pension plan service cost for the period		2.0			7.5			10.1			9.8
Net periodic benefit cost for pension benefit plans	$	3.0		$	18.5		$	26.1		$	26.4

	Successor		Predecessor
	Three months ended December 31		Nine months ended September 30			Years ended December 31
	2012		2012			2011			2010
Other benefit plans
Service cost for the period	$	0.4	$	1.0		$	1.3		$	2.0
Interest cost		1.5		5.3			7.6			10.0
Amortization of unrecognized items:
Actuarial (gains) losses		–		0.1			0.4			0.2
Prior service credits		–		(2.8	)		(3.7	)		(3.6	)
Net periodic benefit cost for other benefit plans	$	1.9	$	3.6		$	5.6		$	8.6

Change in projected defined benefit plan obligation and fair value of plan assets

The following table represents the change in the projected benefit obligation and fair value of plan assets as determined by independent actuaries:

	Pension benefit plans									Other benefit plans
	Successor			Predecessor						Successor			Predecessor
	Three months ended December 31			Nine months ended September 30			Year  ended			Three months ended  December 31			Nine months ended September 30			Year  ended
	2012			2012			2011			2012			2012			2011
Change in benefit obligation
Projected benefit obligation at beginning of period	$	393.9		$	383.8		$	379.4		$	150.8		$	162.3		$	154.5
Service cost for the period		0.2			1.0			1.4			0.4			1.0			1.3
Interest cost		3.7			12.3			17.7			1.5			5.3			7.6
Benefit payments		(7.8	)		(22.9	)		(42.8	)		(1.5	)		(5.6	)		(6.8	)
Recognition (reversal) of downsizing program		–			(0.2	)		1.7			–			(1.4	)		–
Elimination of extended health benefits for retirees		–			–			–			–			(24.8	)		–
Actuarial losses (gains) and other adjustments		(3.5	)		19.9			26.4			(2.0	)		14.0			5.7
Projected benefit obligation at end of period	$	386.5		$	393.9		$	383.8		$	149.2		$	150.8		$	162.3
Change in plan assets
Fair value of defined benefit plan assets at beginning of period	$	231.9		$	226.9		$	246.4		$	–		$	–		$	–
Actual return on plan assets		4.3			13.4			1.0			–			–			–
Company contributions		4.6			14.5			22.0			1.5			5.6			6.8
Other		–			–			0.3			–			–			–
Benefit payments		(7.8	)		(22.9	)		(42.8	)		(1.5	)		(5.6	)		(6.8	)
Fair value of assets at end of period	$	233.0		$	231.9		$	226.9		$	–		$	–		$	–

Reconciliation of funded status to amounts recognized in the consolidated balance sheets

	Pension benefit plans									Other benefit plans
	Successor						Predecessor			Successor						Predecessor
	As at December 31			As at  September 30			As at  December 31			As at  December 31			As at September 30			As at December 31
	2012			2012			2011			2012			2012			2011
Projected benefit obligation at end of period	$	386.5		$	393.9		$	383.8		$	149.2		$	150.8		$	162.3
Fair value of plan assets at end of period		233.0			231.9			226.9			–			–			–
Funded status	$	(153.5	)	$	(162.0	)	$	(156.9	)	$	(149.2	)	$	(150.8	)	$	(162.3	)

	Pension benefit plans									Other benefit plans
	Successor						Predecessor			Successor						Predecessor
	As at December 31			As at  September 30			As at  December 31			As at  December 31			As at September 30			As at December 31
	2012			2012			2011			2012			2012			2011
Other assets (note 16)	$	0.2		$	0.2		$	0.2		$	–		$	–		$	–
Accounts payable and accrued liabilities (note 17)		(7.4	)		(7.3	)		(6.9	)		(5.8	)		(5.3	)		(6.8	)
Employee future benefits		(146.3	)		(154.9	)		(150.2	)		(143.4	)		(145.5	)		(155.5	)
	$	(153.5	)	$	(162.0	)	$	(156.9	)	$	(149.2	)	$	(150.8	)	$	(162.3	)

Of the total funding deficit of $153.5 million on December 31, 2012 and $162.0 million on September 30, 2012 (2011 – $156.9 million) in the company’s various defined benefit pension plans, $83.3 million as of December 31, 2012 and $90.3 million as of September 30, 2012 (2011 – $86.9 million) is related to funded defined benefit pension plans and $70.2 million as of December 31, 2012 and $71.7 million as of September 30, 2012 (2011 – $70.0 million) to “pay-as-you-go” unfunded defined benefit pension plans. In addition, all of the other post-retirement benefit plans, consisting of group health care and life insurance, which had a deficit of $149.2 million at December 31, 2012 and $150.8 million at September 30, 2012 (2011 – $162.3 million) is related to “pay-as-you-go” plans.

Amounts not yet recognized in net periodic benefit cost and included in accumulated other comprehensive income (loss)

	Pension benefit plans							Other benefit plans
	Successor				Predecessor			Successor				Predecessor
	As at December 31		As at  September 30		As at  December 31			As at  December 31		As at September 30		As at December 31
	2012		2012		2011			2012		2012		2011
Prior year service credits (costs)	$	–	$	–	$	(2.9	)	$	–	$	–	$	25.0
Accumulated gain (loss)		4.6		–		(109.8	)		2.0		–		(1.9	)
Accumulated other comprehensive income (loss)	$	4.6	$	–	$	(112.7	)	$	2.0	$	–	$	23.1

Amounts before taxes included in other comprehensive income (loss)

	Successor		Predecessor
	Three months ended December 31		Nine months ended September 30			Twelve months ended December 31
Pension benefit plans	2012		2012			2011
Amortization of employee future benefits	$	–	$	6.6		$	8.5
Net gain (loss)		4.6		(17.4	)		(41.4	)
Net amount recognized in other comprehensive income (loss)	$	4.6	$	(10.8	)	$	(32.9	)

	Successor		Predecessor
	Three months ended December 31		Nine months ended September 30			Twelve months ended December 31
Other benefit plans	2012		2012			2011
Amortization of employee future benefits	$	–	$	(2.7	)	$	(3.3	)
Net gain (loss)		2.0		(14.3	)		(5.5	)
Net amount recognized in other comprehensive income (loss)	$	2.0	$	(17.0	)	$	(8.8	)

In accordance with the requirements of fresh start accounting, the amounts not yet recognized in net periodic benefit cost and included in accumulated other comprehensive income (loss) were reset to nil as at September 30 2012. Accordingly, no prior service (credit) costs or actuarial (gains) losses were amortized in net benefit cost for the three months ended December 31, 2012. The accumulated actuarial (gains) losses as at December 31, 2012 are less than 10% of the greater of the accrued benefit obligation and the fair value of plan assets on December 31, 2012, and therefore, no actuarial (gains) losses will be amortized in the net benefit cost for 2013.

Estimated future benefit payments

Total cash payments for employee future benefits for the year ended December 31, 2012, consisting of cash contributed by the company to its funded pension plans, cash payments directly to beneficiaries for its unfunded benefit plans, cash contributed to its defined contribution plans and cash contributed to its multi-employer industry-wide plan, was $38.8 million (2011 – $42.3 million). During 2013, the company expects to contribute approximately $22.7 million to all of the above pension plans and approximately $6.0 million to its other benefit plans.

In July 2011, the final true up contribution for the closure of the U.S. sales company’s benefit pension plan was made for US$5.1 million.

The following table presents estimated future benefit payments from the plans as of December 31, 2012. Benefit payments for other post-retirement benefits are presented net of retiree contributions.

	Pension benefit plans		Other benefit plans
2013	$	30.6	$	6.0
2014		30.5		6.3
2015		30.1		6.7
2016		29.6		7.0
2017		29.0		7.4
2018 - 2022		133.5		42.4

Plan assets allocation

The asset allocation for the company’s defined benefit pension plans, by asset category, was as follows:

	Successor						Predecessor
Plan assets	As at December 31, 2012			As at September 30, 2012			As at December 31, 2011
Equity securities		56.2	%		57.3	%		58.5	%
Fixed income securities		38.6	%		37.6	%		41.5	%
Real estate		5.2	%		5.1	%		–
Total		100.0	%		100.0	%		100.0	%

Fair value of plan assets

The following tables present information about the fair value of pension and other benefit plan assets:

				Fair value hierarchy
As at December 31, 2012 (successor)	Total			Level 1		Level 2			Level 3
Asset category
Cash and cash equivalents	$	2.8		$	2.8	$	–		$	–
Equity securities:
Global equity pooled funds 1		85.5			85.5		–			–
Canadian equity pooled funds 2		45.2			45.2		–			–
Fixed income securities:
Canadian long bond pooled funds 4		43.7			–		43.7			–
Canadian bond pooled funds 4		43.9			–		43.9			–
Forward currency contracts 5		(0.1	)		–		(0.1	)		–
Real estate 6		12.0			–		12.0			–
Total	$	233.0		$	133.5	$	99.5		$	–

			Fair value hierarchy
As at September 30, 2012 (successor)	Total		Level 1		Level 2		Level 3
Asset category
Cash and cash equivalents	$	2.7	$	2.7	$	–	$	–
Equity securities:
Global equity pooled funds 1		84.2		84.2		–		–
Canadian equity pooled funds 2		46.3		46.3		–		–
Fixed income securities:
Canadian long bond pooled funds 4		43.4		–		43.4		–
Canadian bond pooled funds 4		43.5		–		43.5		–
Forward currency contracts 5		–		–		–		–
Real estate 6		11.8		–		11.8		–
Total	$	231.9	$	133.2	$	98.7	$	–

			Fair value hierarchy
As at December 31, 2011 (predecessor)	Total		Level 1		Level 2		Level 3
Asset category
Cash and cash equivalents	$	7.6	$	7.6	$	–	$	–
Equity securities:
Global equity pooled funds 1		85.8		–		85.8		–
Canadian equity pooled funds 2		41.9		–		41.9		–
Balanced equity pooled funds 3		0.5		–		0.5		–
Fixed income securities:
Canadian long bond pooled funds 4		45.8		–		45.8		–
Canadian bond pooled funds 4		44.9		–		44.9		–
Forward currency contracts 5		0.4		–		0.4		–
Total	$	226.9	$	7.6	$	219.3	$	–

1 This category includes investments in pooled funds that aim to achieve long-term capital growth by investing primarily in equity securities of companies that may be located anywhere in the world, excluding Canada. Fund performance is benchmarked against the MSCI World excluding Canada (Cdn$) Index.

2 This category includes investments in pooled funds that invest in well-diversified portfolios of equity securities of Canadian companies. Fund performance is benchmarked against the S&P/TSX Capped Composite Index.

3 This category includes investments in pooled funds that invest in a well-diversified, balanced portfolio of Canadian common stocks, bonds, and money market securities. The fund also holds a portion of its assets in foreign common stock. Fund performance is benchmarked against a customized index consisting of: 35% S&P/TSX Capped Composite Total Return Index, 25% Morgan Stanley Capital International World (Developed Markets) Index excluding Canada, 35% DEX Universe Bond Index and 5% DEX 30-Day T-Bill Index.

4 This category includes investments in pooled funds that invest in a well-diversified portfolio of fixed income securities issued primarily by Canadian governments and corporations. The duration range of the fund is +/- one year of the benchmark’s duration. Fund performance for Canadian bond pooled funds and Canadian long bond pooled funds is benchmarked against the DEX Universe Bond Index and DEX Long-Term Bond Index, respectively.

5 This category includes foreign currency forward contracts to partially hedge investments in equity and fixed income securities denominated in foreign currencies.

6 This category includes direct investment in office, industrial, retail and residential real estate.

Cash and cash equivalents are primarily used to pay benefits and are recorded at carrying value which approximates fair value.

Equity and fixed income securities are comprised of pooled fund trusts, the fair values of which are measured using the net asset values of the funds, as calculated by the respective investment managers, and have daily or monthly liquidity. Net asset values are determined using quoted market prices for the actively traded securities in which the fund has invested. The funds do not invest in securities that are not actively traded.

Forward currency contracts are comprised of over-the-counter instruments and their fair value is measured using the discounted difference between contractual rates and market spot rates.

Multi-employer benefit plans

The following table provides information about the company’s two multi-employer pension plans: 

Contributions by Catalyst Paper 4

Successor

Predecessor

Three months

Nine months

Pension Protection

FIP / RP status

ended

ended

Year ended

Year ended

EIN / Pension

Act Zone Status 2

pending /

September

September

December

December

Surcharge

Expiration

Pension Fund

plan number 1

2012

2011

Implemented 3

2012

30, 2012

2011

2010

imposed

date 5

Pulp and Paper Industry Pension Plans 6

BCFIC - P085324 CRA - 0394940

Green

Green

No

$

1.9

$

6.8

$

9.2

$

8.9

No

4/30/2017

PACE Industry Union-Management Pension Fund 7

11-6166763-001

Red

Red

Implemented

0.1

0.7

0.9

0.9

No

1/3/2014

1 Employer identification number and three digit pension plan number, if applicable.

2 Funded status on each balance sheet date presented expressed as a zone status. Green status equals at least 80% funded, yellow status equals less than 80% funded and red status equals less than 65% funded.

3 Indicates whether a funding improvement plan (FIP) or a rehabilitation plan (RP) is pending or has been implemented.

4 The company’s annual contributions to the Pulp and Paper Industry Pension Plan in each respective year were greater than 5% of total employer contributions. The company’s annual contributions to the PACE Industry Union Management Pension Fund in each respective year were less than 5% of total employer contributions.

5 Expiration date of collective bargaining agreement on December 31, 2012.

6 Plan participants are members and former members of the Pulp Paper and Woodworkers of Canada (PPWC) and the Communication Energy and Paperworkers Union (CEP).

7 Plan participants are members and former members of the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (United Steelworkers or USW).

Contributions to the Pulp and Paper Industry Pension Plan are based on a percentage of earnings to a cap in hours worked and contributions to the PACE Industry Union-Management Pension Fund are based on a contribution per hour worked to a maximum cap in hours worked. The risks of participating in multi-employer plans differ from single-employer plans in the following ways:

1. The company’s contributions to multi-employer plans may be used to provide benefits to employees of other participating employers.

2. If a participating employer were to stop contributing to a multi-employer plan, the unfunded obligations of the plan may be borne by the remaining participating employers.

3. If the company chose to stop participating in a multiemployer plan, it may be required to pay an amount to that plan based on the underfunded status of the plan, referred to as a withdrawal liability.

As disclosed in note 9, Assets held for sale and discontinued operations, the closure of the Snowflake mill on September 30, 2012 resulted in the incurrence of a withdrawal liability of US$11.7 million related to the PACE Industry Union Management Pension Fund. This liability estimate, provided by the USW, is based on the plan’s funding deficit as of December 31, 2010.

As disclosed in note 7, Measurement uncertainty – impairment of long-lived assets, the company permanently closed the Elk Falls mill in 2010. This change had a significant impact on the comparability of total employer contributions to multi-employer benefit plans for the periods presented. The closure reduced the company’s employee base and resulted in a reduction in pension contributions to the Pulp and Paper Industry Pension Plan of approximately $4.5million.

Significant assumptions

Actuarial assumptions used in accounting for the company-maintained benefit plans were:

	Successor			Predecessor
	Three months ended December 31			Nine months ended September 30			Year ended December 31
Other benefit plans	2012			2012			2011
Benefit obligations at period end,
Discount rate		4.00	%		3.90	%		4.40	%
Rate of compensation increase		2.00	%		2.00	%		2.00	%
Net benefit cost for the period ended,
Discount rate		3.90	%		4.40	%		5.00	%
Rate of compensation increase		2.00	%		2.00	%		2.00	%
Expected rate of return on plan assets		6.50	%		6.75	%		7.00	%
Assumed health care cost trend rate at period end,
Extended health benefits:
Initial health care cost trend rate		6.00	%		6.00	%		6.00	%
Annual rate of decline in trend rate		0.50	%		0.50	%		0.50	%
Ultimate health care cost trend rate		4.50	%		4.50	%		4.50	%
Dental benefits:
Dental care cost trend rate		3.00	%		3.00	%		3.00	%
Medical services plan benefits:
Premium trend rate		6.00% in 2012 and 4.50% thereafter			6.00% in 2011 and 2012, and 4.50% thereafter			6.00% in 2010 to 2012, and 4.50% thereafter

The discount rate for the company’s plans was based on the market interest rate on high-quality debt instruments currently available and expected to be available during the period to maturity of the benefit plans. For December 31, 2012, September 30, 2012 and December 31, 2011, the discount rates were based on AA corporate bond yields as of those dates respectively. In determining the rate of compensation increases, management considered the general inflation rate, productivity and promotions. For the health care cost inflation rate, management considered the trend in extended health care and dental costs in Canada and the impact of inflation on medical service plan premiums. The expected rate of return on plan assets reflects management’s best estimate regarding the long-term expected return from all sources of investment return based on the company’s target asset allocation. The 2012 expected rate of return on plan assets was 6.5% per annum, which was based on a target allocation of approximately 20% Canadian Universe bonds, which were expected to earn approximately 3.4% per annum in the long term, 20% Canadian Long bonds, which were expected to earn approximately 3.3% per annum in the long term, 18% Canadian equity securities, which were expected to earn approximately 8.0% per annum in the long term, and 37% global equity securities, which were expected to earn approximately 8.4% per annum in the long term, and 5% real estate, which were expected to earn approximately 7.5% per annum in the long term. The 2012 expected rate of return on plan assets also included a provision of 0.4% per annum in recognition of additional net returns assumed to be achieved due to active management and periodic rebalancing to maintain the plan’s investment policy, net of investment manager fees, less a margin of 0.3% per annum for non-investment expenses expected to be paid from the plans.

The company’s investment policy recognizes the long-term pension liabilities, the benefits of diversification across asset classes and the effects of inflation. The diversified portfolio is designed to maximize returns consistent with the company’s tolerance for risk. All assets are managed by external investment firms. These firms are constrained by specific mandates and objectives and their performance is measured against appropriate benchmarks. The asset allocation for each plan is reviewed periodically and is rebalanced toward target asset mix when asset classes fall outside of a predetermined range. Portfolio risk is controlled by having fund managers comply with guidelines, by establishing and monitoring the maximum size of any single holding in their portfolios and by using fund managers with different investment styles. The portfolio includes holdings of Canadian and international equities, Canadian high-quality and high-yield fixed income securities, and cash and cash equivalents. A series of permitted and prohibited investments are listed in the company’s investment policy. The use of derivative instruments is restricted and must be in accordance with the company’s policy. Prohibited investments include categories of assets or instruments not specifically provided for in the company’s investment policy.

Sensitivity analysis

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A 1% change in assumed health care cost rates would have the following effects for the three months ended December 31, 2012 and the nine months ended September 30, 2012:

	Other benefit plans
Three months ended December 31, 2012	Increase		Decrease
Total of service and interest cost	$	0.3	$	(0.2	)
Accrued benefit obligation at December 31		16.9		(14.6	)
	Other benefit plans
Nine months ended September 30, 2012	Increase		Decrease
Total of service and interest cost	$	0.8	$	(0.7	)
Accrued benefit obligation at September 30		16.9		(14.6	)

XML

EMPLOYEE FUTURE BENEFITS (Details 9)	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012 Predecessor [Member]	Dec. 31, 2011 Predecessor [Member]
Discount rate	4.00%	3.90%	4.40%
Rate of compensation increase	2.00%	2.00%	2.00%
Discount rate	3.90%	4.40%	5.00%
Rate of compensation increase	2.00%	2.00%	2.00%
Expected rate of return on plan assets	6.50%	6.75%	7.00%
Extended health benefits:
Initial health care cost trend rate	6.00%	6.00%	6.00%
Annual rate of decline in trend rate	0.50%	0.50%	0.50%
Ultimate health care cost trend rate	4.50%	4.50%	4.50%
Dental benefits:
Dental care cost trend rate	3.00%	3.00%	3.00%
Medical services plan benefits:
Premium trend rate	6.00% in 2012 and 4.50% thereafter	6.00% in 2011 and 2012, and 4.50% thereafter	6.00% in 2010 to 2012, and 4.50% thereafter

XML

DEFERRED CREDITS (Details) (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012 Predecessor [Member]	Dec. 31, 2011 Predecessor [Member]
Balance, beginning of period	0	9.6	9.6
Adjustment related to fresh start accounting	0	(9.6)	0
Balance, end of period	0	0	9.6

XML

INCOME TAXES (Details 3) (CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2012 Prepaids and Other [Member]	Sep. 30, 2012 Prepaids and Other [Member]	Dec. 31, 2011 Predecessor [Member]	Dec. 31, 2011 Predecessor [Member] Prepaids and Other [Member]
Deferred income tax assets
Non-capital losses and temporary differences related to working capital	1.8	3.1			15.6
Employee future benefits	3.3	3.4			3.3
Other	5.6	4.3			(1.9)
Gross	10.7	10.8			17.0
Valuation allowance	(10.7)	(10.8)			(3.9)
Deferred Tax Assets, Net	0	0	0	0	13.1	13.1
Classification:
Prepaids and other (note 13)	0	0	0	0	13.1	13.1

XML

CREDITOR PROTECTION PROCEEDINGS (Details Textual) In Millions, except Share data, unless otherwise specified	12 Months Ended					12 Months Ended		12 Months Ended		3 Months Ended		12 Months Ended
	Dec. 31, 2012 CAD	Sep. 30, 2012	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2012 Senior Secured Notes Due 2016 [Member] CAD	Dec. 31, 2012 Senior Secured Notes Due 2014 [Member]	Dec. 31, 2012 Senior Secured Notes Due 2017 [Member] USD ($)	Dec. 31, 2012 Senior Secured Notes Mature September 13, 2017 [Member] USD ($)	Dec. 31, 2012 Unsecured Creditor [Member] CAD	Dec. 31, 2012 Prei [Member] CAD	Dec. 31, 2012 Prei [Member] CAD
Percentage Of Reduction In Hourly Wage Rates For Various Adjustments On New Labour Agreements	10.00%
Debt Instrument, Interest Rate, Effective Percentage						11.00%	7.375%
Description Of Principal Amount Of Creditor Approval	Approval of not less than 66 2/3% of the principal amount of each creditor class voting on the plan was required.
Percentage Of Principal Amount Of Secured Creditor Class Voted	99.50%
Percentage Of Principal Amount Of Unsecured Creditor Class Voted	64.00%
Minimum Percentage Of Approval Of Secured and Unsecured Creditors Received	99.00%
Long-term Debt, Gross						390.4		$ 250.0	$ 35.0
Debt Instrument, Interest Rate Terms								US$250.0 million aggregate principal amount of senior secured notes due in 2017 that bear interest, at the option of the company, at a rate of 11% per annum in cash or 13% per annum payable 7.5% cash and 5.5% payment-in-kind (PIK);
Common stock, issued	14,527,571	14,400,000								127,571
Common stock, outstanding	14,527,571	14,400,000	381,800,000	381,800,000	381,800,000
Percentage Of Common Stock Issue and Outstanding Subject To Dilution	100.00%
Percentage Of Net Proceeds On Pro Rata Share	50.00%
Pro Rata New Common Shares	600,000
Description Of General Creditors	''General creditors exchanged their general unsecured claims for: - their pro rata share of the PREI Proceeds Pool; or - if an equity election were made, their pro rata share of the Unsecured Creditor Share Pool; or - if a general unsecured claim were equal to or less than $10,000, or if a valid cash election were made, and such creditor elected to reduce their claim to $10,000, cash in an amount equal to 50% of the creditor's allowed claim (Cash Convenience Pool).''
Exit Financing	175.0
Proceeds from Secured Notes Payable						35
Wage Inflation Increase Percentage	2.00%
Repayments of Unsecured Debt	1.0									1.0
Proceeds from Sale of Interest in Corporate Unit											33.0	33.0

XML

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details 1) (CAD) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009	Dec. 31, 2008
Sales	260.50
Operating expenses
Cost of sales, excluding depreciation and amortization	245.6
Depreciation and amortization	12.9
Selling, general and administrative	7.7
Restructuring	0
Impairment	8.2		661.8		294.5
Costs and Expenses	266.2
Operating earnings (loss)	(5.7)
Interest expense, net	(11.6)
Foreign exchange gain (loss) on long-term debt	(3.2)
Gain on cancellation of long-term debt	0
Other income (expense), net	0.1
Loss before reorganization items and income taxes	(20.4)
Reorganization items, net	(3.2)
Income (loss) before income taxes	(23.6)
Income tax expense (recovery)	0.2
Earnings (loss) from continuing operations	(23.8)
Loss from discontinued operations, net of tax	(12.9)
Net earnings (loss)	(36.7)
Net (earnings) loss attributable to non-controlling interest (note 8)	(1.5)
Net earnings (loss) before equity in earnings (loss) of subsidiaries	(35.2)
Equity in earnings (loss) of subsidiaries	0
Net earnings (loss) attributable to the company	(35.2)
Parent Company [Member]
Sales	0
Operating expenses
Cost of sales, excluding depreciation and amortization	4.4
Depreciation and amortization	8.8
Selling, general and administrative	4.6
Costs and Expenses	17.8
Operating earnings (loss)	(17.8)
Interest expense, net	(4.6)
Foreign exchange gain (loss) on long-term debt	(3.2)
Equity earnings in Partnership	8.8
Other income (expense), net	1.4
Loss before reorganization items and income taxes	(15.4)
Reorganization items, net	(10.6)
Income (loss) before income taxes	(26.0)
Income tax expense (recovery)	0.7
Earnings (loss) from continuing operations	(26.7)
Loss from discontinued operations, net of tax	(12.9)
Net earnings (loss)	(39.6)
Net (earnings) loss attributable to non-controlling interest (note 8)	1.5
Net earnings (loss) before equity in earnings (loss) of subsidiaries	(38.1)
Equity in earnings (loss) of subsidiaries	2.9
Net earnings (loss) attributable to the company	(35.2)
Guarantor Subsidiaries [Member]
Sales	260.60
Operating expenses
Cost of sales, excluding depreciation and amortization	243.9
Depreciation and amortization	2.2
Selling, general and administrative	3.1
Costs and Expenses	249.2
Operating earnings (loss)	11.4
Interest expense, net	(3.7)
Foreign exchange gain (loss) on long-term debt	0
Equity earnings in Partnership	0
Other income (expense), net	(1.1)
Loss before reorganization items and income taxes	6.6
Reorganization items, net	8.7
Income (loss) before income taxes	15.3
Income tax expense (recovery)	0.6
Earnings (loss) from continuing operations	14.7
Loss from discontinued operations, net of tax	(11.5)
Net earnings (loss)	3.2
Net (earnings) loss attributable to non-controlling interest (note 8)	0
Net earnings (loss) before equity in earnings (loss) of subsidiaries	3.2
Equity in earnings (loss) of subsidiaries	0
Net earnings (loss) attributable to the company	3.2
Non-Guarantor Subsidiaries [Member]
Sales	4.60
Operating expenses
Cost of sales, excluding depreciation and amortization	2.0
Depreciation and amortization	1.9
Selling, general and administrative	0
Costs and Expenses	3.9
Operating earnings (loss)	0.7
Interest expense, net	(3.3)
Foreign exchange gain (loss) on long-term debt	0
Equity earnings in Partnership	0
Other income (expense), net	(0.2)
Loss before reorganization items and income taxes	(2.8)
Reorganization items, net	(1.3)
Income (loss) before income taxes	(4.1)
Income tax expense (recovery)	(1.1)
Earnings (loss) from continuing operations	(3.0)
Loss from discontinued operations, net of tax	(1.4)
Net earnings (loss)	(4.4)
Net (earnings) loss attributable to non-controlling interest (note 8)	0
Net earnings (loss) before equity in earnings (loss) of subsidiaries	(4.4)
Equity in earnings (loss) of subsidiaries	0
Net earnings (loss) attributable to the company	(4.4)
Consolidation, Eliminations [Member]
Sales	(4.70)
Operating expenses
Cost of sales, excluding depreciation and amortization	(4.7)
Depreciation and amortization	0
Selling, general and administrative	0
Costs and Expenses	(4.7)
Operating earnings (loss)	0
Interest expense, net	0
Foreign exchange gain (loss) on long-term debt	0
Equity earnings in Partnership	(8.8)
Other income (expense), net	0
Loss before reorganization items and income taxes	(8.8)
Reorganization items, net	0
Income (loss) before income taxes	(8.8)
Income tax expense (recovery)	0
Earnings (loss) from continuing operations	(8.8)
Loss from discontinued operations, net of tax	12.9
Net earnings (loss)	4.1
Net (earnings) loss attributable to non-controlling interest (note 8)	0
Net earnings (loss) before equity in earnings (loss) of subsidiaries	4.1
Equity in earnings (loss) of subsidiaries	(2.9)
Net earnings (loss) attributable to the company	1.2
Predecessor [Member]
Sales		797.70	1,079.70		1,051.40		1,077.70	1,696.90
Operating expenses
Cost of sales, excluding depreciation and amortization		718.0	970.7		930.1		890.0	1,456.5
Depreciation and amortization		23.4	112.4		119.3		137.3	159.8
Selling, general and administrative		26.2	40.3		43.4		44.8	46.9
Restructuring		5.3	5.9		25.3		17.9	30.1
Impairment		3.3	823.6		294.5		17.4	151.0
Costs and Expenses		772.9	1,784.2		1,403.0		1,107.4	1,844.3
Operating earnings (loss)		24.8	(704.5)		(351.6)		(29.7)	(147.4)
Interest expense, net		(60.3)	(73.2)		(71.9)		(69.1)	(74.8)
Foreign exchange gain (loss) on long-term debt		24.0	(9.7)		27.6		75.3	(82.2)
Gain on cancellation of long-term debt		0	0		0.6		30.7	0
Other income (expense), net		(2.6)	(2.1)		(2.6)		(28.6)	(15.7)
Loss before reorganization items and income taxes		(14.1)	(789.5)		(398.5)		(21.4)	(320.1)
Reorganization items, net		666.9	0		0		0	0
Income (loss) before income taxes		652.8	(789.5)		(398.5)		(21.4)	(320.1)
Income tax expense (recovery)		(1.1)	(8.4)	[1]	(19.8)	[2]	(23.1)	(90.7)
Earnings (loss) from continuing operations		653.9	(781.1)		(378.7)		1.7	(229.4)
Loss from discontinued operations, net of tax		(3.6)	(195.5)		(19.5)		(7.3)	10.4
Net earnings (loss)		650.3	(976.6)		(398.2)		(5.6)	(219.0)
Net (earnings) loss attributable to non-controlling interest (note 8)		31.9	(2.6)		(1.3)		(1.2)	0.8
Net earnings (loss) before equity in earnings (loss) of subsidiaries		618.4	(974.0)		(396.9)
Equity in earnings (loss) of subsidiaries		0	0		0
Net earnings (loss) attributable to the company		618.4	(974.0)		(396.9)		(4.4)	(219.8)
Predecessor [Member] | Parent Company [Member]
Sales		0	0		0
Operating expenses
Cost of sales, excluding depreciation and amortization		13.2	20.4		29.1
Depreciation and amortization		15.4	66.8		69.5
Selling, general and administrative		13.8	20.1		22.6
Restructuring		5.3	5.9		0
Impairment			496.2		232.8
Costs and Expenses		47.7	609.4		354.0
Operating earnings (loss)		(47.7)	(609.4)		(354.0)
Interest expense, net		(30.5)	(33.3)		(32.7)
Foreign exchange gain (loss) on long-term debt		24.0	(9.7)		27.6
Equity earnings in Partnership		79.8	61.8		37.0
Other income (expense), net		(53.1)	5.7		(11.4)
Loss before reorganization items and income taxes		(27.5)
Reorganization items, net		512.9
Income (loss) before income taxes		485.4	(584.9)		(333.5)
Income tax expense (recovery)		8.4	(57.8)		(13.3)
Earnings (loss) from continuing operations		477.0	(527.1)		(320.2)
Loss from discontinued operations, net of tax		(3.6)	(195.5)		(19.5)
Net earnings (loss)		473.4	(722.6)		(339.7)
Net (earnings) loss attributable to non-controlling interest (note 8)		(31.9)	2.6		1.3
Net earnings (loss) before equity in earnings (loss) of subsidiaries		441.5	(720.0)		(338.4)
Equity in earnings (loss) of subsidiaries		176.9	(254.0)		(58.5)
Net earnings (loss) attributable to the company		618.4	(974.0)		(396.9)
Predecessor [Member] | Guarantor Subsidiaries [Member]
Sales		797.70	1,079.70		1,051.50
Operating expenses
Cost of sales, excluding depreciation and amortization		715.3	966.7		915.0
Depreciation and amortization		4.1	25.3		32.8
Selling, general and administrative		12.4	20.1		20.8
Restructuring		0	0		25.3
Impairment			165.6		61.7
Costs and Expenses		731.8	1,177.7		1,055.6
Operating earnings (loss)		65.9	(98.0)		(4.1)
Interest expense, net		(20.0)	(28.6)		(28.4)
Foreign exchange gain (loss) on long-term debt		0	0		0
Equity earnings in Partnership		0	0		0
Other income (expense), net		54.6	(8.1)		8.9
Loss before reorganization items and income taxes		100.5
Reorganization items, net		98.4
Income (loss) before income taxes		198.9	(134.7)		(23.6)
Income tax expense (recovery)		(21.4)	52.3		(4.9)
Earnings (loss) from continuing operations		220.3	(187.0)		(18.7)
Loss from discontinued operations, net of tax		(4.1)	(195.5)		(19.5)
Net earnings (loss)		216.2	(382.5)		(38.2)
Net (earnings) loss attributable to non-controlling interest (note 8)		0	0		0
Net earnings (loss) before equity in earnings (loss) of subsidiaries		216.2	(382.5)		(38.2)
Equity in earnings (loss) of subsidiaries		0	0		0
Net earnings (loss) attributable to the company		216.2	(382.5)		(38.2)
Predecessor [Member] | Non-Guarantor Subsidiaries [Member]
Sales		15.60	23.40		20.40
Operating expenses
Cost of sales, excluding depreciation and amortization		5.1	7.0		6.5
Depreciation and amortization		3.9	13.4		7.4
Selling, general and administrative		0	0.1		0
Restructuring		0	0		0
Impairment			0		0
Costs and Expenses		9.0	20.5		13.9
Operating earnings (loss)		6.6	2.9		6.5
Interest expense, net		(9.8)	(11.3)		(10.8)
Foreign exchange gain (loss) on long-term debt		0	0		0
Equity earnings in Partnership		0	0		0
Other income (expense), net		51.6	0.3		(0.1)
Loss before reorganization items and income taxes		48.4
Reorganization items, net		55.6
Income (loss) before income taxes		104.0	(8.1)		(4.4)
Income tax expense (recovery)		11.9	(2.9)		(1.6)
Earnings (loss) from continuing operations		92.1	(5.2)		(2.8)
Loss from discontinued operations, net of tax		0.5	0		0
Net earnings (loss)		92.6	(5.2)		(2.8)
Net (earnings) loss attributable to non-controlling interest (note 8)		0	0		0
Net earnings (loss) before equity in earnings (loss) of subsidiaries		92.6	(5.2)		(2.8)
Equity in earnings (loss) of subsidiaries		0	0		0
Net earnings (loss) attributable to the company		92.6	(5.2)		(2.8)
Predecessor [Member] | Consolidation, Eliminations [Member]
Sales		(15.60)	(23.40)		(20.50)
Operating expenses
Cost of sales, excluding depreciation and amortization		(15.6)	(23.4)		(20.5)
Depreciation and amortization		0	0		0
Selling, general and administrative		0	0		0
Restructuring		0	0		0
Impairment			0		0
Costs and Expenses		(15.6)	(23.4)		(20.5)
Operating earnings (loss)		0	0		0
Interest expense, net		0	0		0
Foreign exchange gain (loss) on long-term debt		0	0		0
Equity earnings in Partnership		(79.8)	(61.8)		(37.0)
Other income (expense), net		(55.7)	0		0
Loss before reorganization items and income taxes		(135.5)
Reorganization items, net		0
Income (loss) before income taxes		(135.5)	(61.8)		(37.0)
Income tax expense (recovery)		0	0		0
Earnings (loss) from continuing operations		(135.5)	(61.8)		(37.0)
Loss from discontinued operations, net of tax		3.6	195.5		19.5
Net earnings (loss)		(131.9)	133.7		(17.5)
Net (earnings) loss attributable to non-controlling interest (note 8)		0	0		0
Net earnings (loss) before equity in earnings (loss) of subsidiaries		(131.9)	133.7		(17.5)
Equity in earnings (loss) of subsidiaries		(176.9)	254.0		58.5
Net earnings (loss) attributable to the company		(308.8)	387.7		41.0

[1] Included $8.4 million income tax recovery related to continuing operations and $1.0 million income tax expense related to discontinued operations

[2] Included $19.8 million income tax recovery related to continuing operations and $3.5 million income tax expense related to discontinued operations

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FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2012

Investments, All Other Investments [Abstract]

Financial Instruments Disclosure [Text Block]

30. FINANCIAL INSTRUMENTS

(a) Financial Risk Management

Financial instruments of the company consist primarily of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities and long-term debt. Financial instruments of the company also include derivatives which the company uses to reduce its exposure to currency and price risk associated with its revenues, energy costs and long-term debt.

The company has exposure to risk from its financial instruments, specifically credit risk, market risk (including currency, price and interest rate risk) and liquidity risk.

(i) Credit Risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligation. This risk derives principally from the company’s receivables from customers and derivative counterparties.

Accounts Receivable

The company is exposed to credit risk on accounts receivable from its customers who are mainly in the newspaper publishing, commercial printing and paper manufacturing businesses. The company manages its credit risk principally through credit policies, which include the analysis of the financial positions of its customers and the regular review of their credit limits. The company also subscribes to credit insurance for substantially all of its receivables, periodically purchases accounts receivable puts on certain customers, and obtains bank letters of credit for some export market customers.

Aging of receivables were as follows:

	Successor					Predecessor
	As at  December 31			As at  September 30		As at  December 31
	2012			2012		2011
Trade receivables, gross
Current	$	86.3		$	110.7	$	100.9
Past due 1-30 days		7.3			6.7		13.6
Past due 31-90 days		0.2			3.6		0.3
Past due over 90 days		0.9			0.9		0.3
		94.7			121.9		115.1
Allowance for doubtful accounts		(2.2	)		–		(2.0	)
Trade receivables, net		92.5			121.9		113.1
Other receivables, including sales tax recoverables		21.5			18.9		21.8
Accounts receivable (note 11)	$	114.0		$	140.8	$	134.9

The movement in the allowance for doubtful accounts in respect of trade receivables were as follows:

	Successor					Predecessor
	As at  December 31		As at  September 30			As at  December 31
	2012		2012			2011
Balance, beginning of period	$	–	$	2.0		$	3.0
Increase (decrease) in provision		2.2		(2.0	)		(1.0	)
Balance, end of period (note 11)	$	2.2	$	–		$	2.0

Derivatives

The company is also exposed to credit risk with counterparties to the company’s derivative financial instruments. The credit risk arises from the potential for a counterparty to default on its contractual obligations, and is limited to those contracts where the company would incur a cost to replace a defaulted transaction. The company manages this risk by diversifying through counterparties that are of strong credit quality, normally major financial institutions.

(ii) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, commodity prices and interest rates will affect the company’s cash flows or the value of its financial instruments (e.g., fixed interest long-term debt).

Currency risk: The company is exposed to the risk that future cash flows will fluctuate as substantially all of the company’s sales and accounts receivable are denominated in U.S. dollars, while only a portion of its costs and payables are denominated in or referenced to U.S. dollars. The company is also exposed to the fluctuations in the fair value of its debt denominated in U.S. dollars. Up to September 30, 2011, a portion of the company’s U.S. dollar denominated long-term debt was designated as an effective hedge of the company’s net investment in Snowflake mill. The company uses foreign currency options and forward contracts to partially hedge trade receivables and anticipated future sales denominated in foreign currencies as well as U.S. dollar denominated debt.

The company’s hedging policy for anticipated sales and accounts receivable includes 0% to 67% of 0- to 12-month and 0% to 25% of 13- to 24-month U.S. dollar net exposure. Hedges are layered in over time, increasing the portion of sales or accounts receivable hedged as it gets closer to the expected date of the sale or collection of the accounts receivable. The company’s hedging policy for its U.S. dollar denominated debt includes 0% to 60% of U.S. dollar net exposure. Future U.S. dollar revenues also provide a partial natural hedge for U.S. dollar denominated debt. As of December 31, 2012 and September 30, 2012, the company did not have any foreign currency options or forward contracts outstanding.

Price risk: The company’s policy allows for hedges of newsprint and pulp to be placed on anticipated sales, and hedges of old newsprint to be placed on anticipated purchases and allows for anticipated purchases at 0% to 70% of 0- to 12-month, 0% to 60% of 13- to 24-month and 0% to 30% of 25- to 36-month of the net exposure for oil and natural gas. As of December 31, 2012 and September 30, 2012, the company did not have any outstanding commodity contracts outstanding.

Interest rate risk: The fair value of the company’s fixed-rate debt or the future cash flows of variable-rate debt or fixed-to-floating interest swaps may fluctuate because of changes in market interest rates. The company’s policy is to keep the majority of its term debt on a fixed-rate basis, but to allow for the placing of some fixed-to-floating swaps at rates considered acceptable.

(iii) Liquidity risk

Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due over the next 12 to 24 months, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company’s reputation.

The company’s principal cash requirements are for interest payments on its debt, capital expenditures and working capital needs. The company uses its operating cash flows, ABL Facility and cash balances to maintain its liquidity. Internal forecasts are regularly prepared that include earnings, capital expenditures, cash flows, cash or revolver drawings, and sensitivities for major assumptions. The internal forecasts include borrowing base availability and covenant compliance. The company also monitors the maturities of its long-term debt and assesses refinancing costs and risks in deciding when to refinance debt in advance of its maturity.

(b) Revenue risk management instruments

The company did not have any foreign currency or forward contracts outstanding at December 31, 2012 or at September 30, 2012.

Foreign currency options and forward contracts are no longer designated as hedging instruments and are reported at their fair value, which was $nil million at December 31, 2012 and September 30, 2012 (December 31, 2011 - $4.5 million), with related gains and losses recognized in Other income (expense) net.

Commodity swap agreements are not designated as hedging instruments and are reported at their fair value which was $nil at December 31, 2012 and September 30, 2012 (December 31, 2011 - $0.5 million) with related gains and losses recognized in Other income (expense) net.

(c) Cost risk management instruments

The company did not have any commodity contracts outstanding at December 31, 2012 or at September 30, 2012 (December 31, 2011 - negative $0.6 million).

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INVENTORIES

12 Months Ended

Dec. 31, 2012

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

12. INVENTORIES

The components of inventories are as follows:

	Successor				Predecessor
	As at December 31		As at September 30		As at December 31
	2012		2012		2011
Finished goods
Specialty printing papers	$	22.3	$	31.1	$	28.6
Newsprint		7.7		7.8		9.1
Pulp		3.9		3.0		7.8
Total finished goods		33.9		41.9		45.5
Work-in-progress		0.9		0.9		1.1
Raw materials – wood chips, pulp logs and other		23.1		21.1		26.3
Operating and maintenance supplies and spare parts		67.1		67.6		74.0
	$	125.0	$	131.5	$	146.9

The company had applied write-downs to finished goods inventory of $0.1 million on December 31, 2012 and $0.3 million on September 30, 2012 (December 31, 2011 – $2.1 million) and to raw materials inventory of $0.8 million on December 31, 2012 and $2.0 million on September 30, 2012 (December 31, 2011 – $4.5 million).

Inventories are pledged as collateral against the long-term debt of the company. See note 18, Long-term debt, for detailed disclosure of the collateral arrangements of the company.

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PROPERTY,PLANT AND EQUIPMENT (Details Textual) (Machinery and Equipment [Member], CAD) In Millions, unless otherwise specified	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011 Predecessor [Member]
Capital Leases, Balance Sheet, Assets by Major Class, Net	7.3	7.5	9.6
Capital Leased Assets, Gross	7.5	7.5	15.1
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation	0.2	0	5.5