Backed by Littlejohn and CITIC Capital Partners, Northwest Hardwoods Filed for Bankruptcy
Posted on 11/25/2020
On November 23, 2020, Northwest Hardwoods, Inc. and certain of its affiliates moved forward its restructuring support agreement by filing voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Bankruptcy Court authorized Northwest Hardwoods to use over US$ 22 million of available cash to pay all critical vendors and other service providers any pre-bankruptcy amounts owing as invoices for those amounts become due and owing.
Northwest Hardwoods is a Tacoma, Washington-based lumber manufacturer backed since 2014 by Littlejohn & Co. and CITIC Capital Partners. Northwest Hardwoods is the largest United States manufacturer of North American hardwood lumber based on sawmill capacity.
Northwest Hardwoods had debt of US$ 270 million.
Upon resolution, the secured noteholders will convert their approximate US$ 379 million of secured notes into US$ 110 million of new exit term loans and 99% of the equity in reorganized Northwest Hardwoods (subject to dilution by a management incentive plan).
Advisors
Northwest Hardwoods is represented by Gibson, Dunn & Crutcher LLP and Young Conaway Stargatt & Taylor, LLP as legal co-counsels and Huron Consulting Group as financial advisor. The secured noteholders are represented by Willkie Farr & Gallagher LLP as legal counsel and Guggenheim Securities, LLC as financial advisor.
