Building Materials Holding Corp. Files For Ch. 11 Bankruptcy Protection

Building Materials Holding Corporation, Boise, ID, a provider of building materials and construction services to professional residential builders and contractors, has filed for Chapter 11 bankruptcy protection after reaching an agreement with secured lenders on a restructuring plan.

Currently, there are no plans to close any additional facilities or reduce employment levels because of the filing. The company has closed several facilities in the past year, including the discontinuation of its wholly owned subsidiary SelectBuild Florida.

BMHC plans to continue to operate as usual while it implements the pre-negotiated restructuring plan. The distributor has received commitments for $80 million in debtor-in-possession financing for the process.

Under the proposed plan, BMHC's ...

Building Materials Holding Corporation, Boise, ID, a provider of building materials and construction services to professional residential builders and contractors, has filed for Chapter 11 bankruptcy protection after reaching an agreement with secured lenders on a restructuring plan.

Currently, there are no plans to close any additional facilities or reduce employment levels because of the filing. The company has closed several facilities in the past year, including the discontinuation of its wholly owned subsidiary SelectBuild Florida.

BMHC plans to continue to operate as usual while it implements the pre-negotiated restructuring plan. The distributor has received commitments for $80 million in debtor-in-possession financing for the process.

Under the proposed plan, BMHC’s existing secured lenders will convert their interests into equity in the newly reorganized company and will receive interests in $135 million in newly issued long-term notes. Unsecured creditors will receive a cash distribution and the right to receive future payments based upon the performance of the company.

BMHC anticipates completing the restructuring process in three to four months. BMHC recorded a first quarter loss of $45.2 million.

Other recent housing market-related bankruptcies:
Western Tool Supply
Stock Building Supply
ORCO Construction Supply

 

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.