B.C. timber company files for bankruptcy in the U.S.
Posted April 26, 2023 5:58 pm.
Last Updated April 26, 2023 5:59 pm.
A B.C. mass timber company has filed for bankruptcy in the United States.
Earlier this week Structurlam Mass Timber Corporation announced it entered into a purchase agreement to sell its assets in B.C. and Arkansas for $60 million USD.
The purchasing party getting all of the assets in this deal is Mercer International of Vancouver.
“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.
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A release from Structurlam explains the company “voluntarily filed petition for relief under Chapter 11 of the U.S. code.”
The case is set to be dealt with in the Supreme Court of B.C., and Structurlam says it “secured a $7.5 million CAD debtor-in-possession facility” from the Bank of Montreal to help fund its remaining operations as the court process runs through.
The company was founded in 1962 and had locations in Penticton, Oliver, and Okanagan Falls.
