Northwest Hardwoods Correctly Completes Economic Restructuring System, Positioned for Lengthy-Term Advancement
TACOMA, Clean., Jan. 29, 2021 /PRNewswire/ — On January 29, 2021, Northwest Hardwoods, Inc. and specified of its affiliate marketers (collectively, “NWH” or the “Company”) announced that it had accomplished its money restructuring method and emerged from Chapter 11. By restructuring, NWH has significantly minimized its long-term financial debt obligations by just about $270m and significantly diminished its credit card debt provider obligations. As a result, the Organization retains a potent place to re-spend in very long-time period progress and keep on to offer sector-major excellent and assistance to its customers.
During the restructuring procedure, the Company’s operations continued with no interruption. Personnel, suppliers, vendors, contract counterparties and other trade lenders have been paid out in entire and in the regular training course of organization or had been otherwise unimpaired.
“This is an crucial milestone for Northwest Hardwoods and marks the starting of a new and remarkable phase for the organization,” said CEO Nathan Jeppson. “The successful completion of this restructuring process has allowed us to noticeably lessen our charge composition and positions us to commit meaningfully in our very long-expression progress. Today’s information can help us advance our mission to unleash the prospective of the most environmentally seem hardwood solutions across the world.”
NWH’s financial restructuring is the solution of considerable and collaborative discussions between NWH and its essential prepetition stakeholders. Pursuant to the Company’s “pre-packaged” chapter 11 plan, its ~$379 million of secured notes have been converted into $110 million of secured exit takeback expression loans and 99% of the fairness in reorganized NWH (matter to dilution). The remainder of the reorganized equity is reserved for the Company’s current fairness holders in trade for their aid all through the approach. In addition, the Company has entered into a new ABL credit rating settlement with Financial institution of The usa and Wells Fargo, making certain that the Enterprise will go on to have prepared entry to a strong doing work cash facility.
The ad hoc team of holders of the company’s prepetition secured notes (the “Ad Hoc Group”), encompassing around 90% of the company’s secured notes, has also expressed its fulfillment with the completion of the restructuring system. Expressing its assist, the Advert Hoc Team stated “Today’s news is welcome for all of Northwest Hardwoods stakeholders and investors. We imagine strongly in the very long-term growth of Northwest Hardwoods, its amazing workforce and the power of its management team. We seem ahead to a prosperous potential for Northwest Hardwoods”.
Gibson, Dunn & Crutcher LLP and Younger Conaway Stargatt & Taylor, LLP served as legal counsel to NWH and Huron Consulting Team served as economic advisor. The advert hoc team was represented by Willkie Farr & Gallagher LLP and Pachulski Stang Ziehl & Jones LLP, as legal counsel and Guggenheim Securities, LLC as money advisor. This press launch does not constitute an offer you to market or a solicitation of an offer you to obtain any securities.
About NWH
NWH is the most significant United States company of North American hardwood lumber primarily based on sawmill ability, with a recent believed once-a-year hardwood lumber potential of roughly 320 million board feet. Its North America functions involve 20 facilities that deliver in excess of 20 species of domestic hardwoods. The Business serves extra than 2,000 energetic consumers across over 60 nations.
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Source Northwest Hardwoods