B.C. mass timber company files for bankruptcy
Structurlam announced it is selling its assets to Mercer International.
Former B.C. Premier John Horgan tours Structurlam’s facility in 2019. – Province of B.C.
Structurlam Mass Timber Corporation is filing for bankruptcy.
The company announced it has entered into a stalking horse asset purchase agreement (APA) with Mercer International Inc. to sell its assets in B.C. and Arkansas for US$60 million. Mercer is one of the world’s largest producers of market pulp.
In conjunction with the APA, the Company has voluntarily filed petition for relief under Chapter 11 of the U.S. code. Recognition of the Chapter 11 proceedings will be sought in the Supreme Court of British Columbia shortly thereafter.
The company explained that 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.
Operations were suspended at the Arkansas plant due to a customer contract cancellation. Local news outlets reported Walmart cancelled its contract due to production delays. Walmart’s headquarters is also in Arkansas.
Structurlam products have been used on many Canadian projects, including:
- Art Gallery of Ontario
- Prince George’s Wood Innovation and Design Centre
- Brock Commons
- The Richmond Olympic Oval