Header:

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

Hampton Creates New College Tech Endowment

Hampton Lumber & Family Forests is pleased to announce the creation of a Hampton Lumber Scholarship endowment for Tillamook Bay Community College (TBCC). The endowment will provide scholarships for students in TBCC’s forestry and manufacturing and industrial technology (MIT) programs…

USNR Gains Foraction Chile Order

USNR has announced the order of a complete sawmilling system to the Chilean company Foraction Chile. This highly advanced production line is designed to process radiata pine and will be installed at a greenfield site in the Los Rios region, about 800 km south of Santiago…

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.