Structurlam Has Entered into a US$60 Million Stalking Horse Asset Purchase Agreement
April 24, 2023•News
PENTICTON, British Columbia (Apr. 21, 2023) — Structurlam Mass Timber Corporation (the “Company”), the leading mass timber manufacturer in North America, announced today it has entered into a stalking horse asset purchase agreement (the “APA”) with Mercer International Inc. (“Mercer”) 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 (“Chapter 11”). 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 (“DIP”) 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. Interested bidders are encouraged to contact Kevin Haggard (firstname.lastname@example.org) or Willem Enthoven
Stakeholders can receive additional information by contacting the Company’s Claim Agent, KCC at https://www.kccllc.net/Structurlam or calling: (888) 647-1715 (U.S./Canada) or (310) 751-2619 (International).
For Media Inquiries:
Paul Sehn, Structurlam
About Structurlam Mass Timber Corporation
Structurlam is the leading North American provider of mass timber solutions for construction and industrial markets in Canada and the U.S. Its structural laminated mass timber and industrial products include CrossLam® CLT cross-laminated panels, and GlulamPLUS® glue-laminated columns and beams. Structurlam is also the first producer in North America to introduce CLT in the production of industrial ground protection matting products. Structurlam’s entire product line is built from North American sustainably harvested softwood lumber, ensuring consistent product and environmental standards. Structurlam collaborates with architects, engineers and industrial OEM customers to create fully integrated solutions that combine design, engineering, a customized project delivery experience. Established in 1962, Structurlam’s world-class reputation is built on innovation, cost-efficiency and quality. Structurlam is based in Penticton, British Columbia and has mass timber production facilities in Canada and the U.S. For more information, visit http://structurlam.com.