Structurlam files for bankruptcy, enters into US$60M asset purchase agreement
April 24, 2023 By CFI Staff
Structurlam Mass Timber Corporation announced today it has entered into an initial bid asset purchase agreement (APA) with Mercer International to sell substantially all the company’s assets in British Columbia and Arkansas for US$60 million.
In conjunction with the APA, the company has voluntarily filed petition for relief under Chapter 11 of the U.S. code. Recognition of the Chapter 11 proceedings will be sought in the Supreme Court of British Columbia shortly thereafter.
The APA is subject to higher and better offers as part of a court monitored auction process. In addition, the Company secured a C$7.5 million debtor-in-possession facility from the Bank of Montreal to fund its operations throughout the court process.
“I am delighted and grateful for Mercer’s vote of confidence in Structurlam and in its leadership in the mass timber industry. It is especially rewarding given the difficult period the company has had since suspending its operations in Arkansas mid-January, and it will help in normalizing the plant operations going forward” said Matthew Karmel, CEO of Structurlam Mass Timber Corporation.
Structurlam is being advised by Stifel/Miller Buckfire as its investment banker.
Read the company’s full statement here.
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