Northwest Hardwoods Reconfigures
Northwest Hardwoods, Inc. (NWH) reports it has entered into a restructuring support agreement (RSA) with holders of more than 95% in principal amount of the company’s secured notes and certain of its existing equity holders to execute a transaction that will reduce the company’s debt by $270 million and position NWH for future growth and success.
The company states it will effectuate the transaction either through an out-of-court debt-for-equity exchange or through a prepackaged Chapter 11 plan of reorganization. The terms of the restructuring under each approach are substantially the same, and both approaches will ensure that the company’s operations continue without interruption, with employees, suppliers, vendors, contract counterparties and other trade creditors continuing to be paid in full in the ordinary course, the company states. In a Chapter 11 scenario, the company would fund the process with its existing cash collateral.
“The RSA is the product of extensive, collaborative, good faith negotiations among NWH and its key stakeholders. The financial restructuring is specifically designed to ensure that NWH’s executive team can remain focused on go-forward operations, which will continue in the ordinary course without interruption,” according to a company release.
Specifically, this agreement accomplishes several key objectives: reduce the company’s debt by $270 million; significantly reduce debt service obligations, thereby increasing cash flow available for re-investment in the business; and accomplish this without impacting employees, vendors or customers.
NWH is the largest U.S. manufacturer of North American hardwood lumber with a current estimated annual hardwood lumber capacity of 320MMBF. Its North America operations include 20 facilities that produce more than 20 species of domestic hardwoods.
NWH is owned by investment firm Littlejohn & Co., which purchased it in 2014 from American Industrial Partners.
RELATED ARTICLES
Collins Appoints TJ Rosengarth President & CEO
Northwest Hardwoods: 20-Year Project
Latest News
Conway CLT Plant Is Back On Track
Mercer International Inc. and its subsidiary Mercer Mass Timber, a manufacturer of timber building materials, completed the acquisition of Structurlam Mass Timber Corp. and its subsidiaries in mid-June. Mercer Mass Timber immediately takes possession and continues the operation of Structurlam’s manufacturing facilities, which will…
Timberlab Opens Glulam Facility
Timberlab, a nationwide provider of mass timber systems, is opening its second glued laminated timber fabrication facility in Greenville, SC. Timberlab’s goal is to provide the Eastern U.S. with a more regional platform for a sustainable, low-carbon building material and accelerate the mainstream adoption of mass timber construction to benefit the planet and its people…
Housing Starts Come On Like Gangbusters
U.S. housing starts, both single-family and multi-family, came in hot in May at a combined seasonally adjusted rate of 1.631 million, a 21.7% increase above April. Single-family starts in May were at a rate of 997,000 an 18.5% increase over April, and multi-family was 624,000, an increase of 28% over April, according to the U.S. Census Bureau and U.S. Dept. of Housing and Urban Development…
Find Us On Social
Newsletter
The monthly Timber Processing Industry Newsletter reaches over 4,000 mill owners and supervisors.
Subscribe/Renew
Timber Processing is delivered 10 times per year to subscribers who represent sawmill ownership, management and supervisory personnel and corporate executives. Subscriptions are FREE to qualified individuals.
Advertise
Complete the online form so we can direct you to the appropriate Sales Representative.