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.
Robert Jordan, IV, president and CEO of the Jordan Companies, is the 2021 Timber Processing Person of the Year, 14 years after his father, Bob Jordan, received the annual award, now in its 33rd year. Truly…
U.S. housing starts, thanks to the single-family market, finished 2020 on a surge, with December housing starts at a seasonally adjusted rate of 1.669 million, a 5.8% increase over November and 5.2% increase compared to December…
Biewer Plans For Second SYP Greenfield Mill: Biewer Lumber is constructing its second greenfield southern yellow pine sawmill in Mississippi, this one in Winona, about 100 miles north of its first one in Newton, and…
Find Us On Social
The monthly Timber Processing Industry Newsletter reaches over 4,000 mill owners and supervisors.
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.
Complete the online form so we can direct you to the appropriate Sales Representative.