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
