Building Materials Holding Corp. (BMHC) received final approval from U.S. Bankruptcy Court in Wilmington, Del. to access $80 million in debtor-in-possession (DIP) financing from Wells Fargo and other lenders.
The Boise, Idaho-based dealer expects the new financing to provide "ample liquidity to meet its ongoing obligations to employees, customers, suppliers, and subcontractors," the company said in a prepared statement. At the same time, BMHC is implementing a pre-negotiated restructuring of its balance sheet.
On June 16, BMHC revealed that it had initiated a reorganization plan under Chapter 11 of the U.S. Bankruptcy Code. According to CEO and chairman Robert Mellor, the company's everyday business has not been hampered since filing for Chapter 11.
"Service levels throughout our operations are meeting or exceeding the same high standards that our customers expect from us, and we look forward to continuing to deliver on these expectations," Mellor said.
Last month the court approved access to $40 million in DIP financing on an interim basis, among other "First Day" motions, which allowed BMHC to continue operations.
BMHC operates 31 distribution yards, 43 manufacturing facilities, and five construction services facilities. It has two main operations: BMC West, its lumber distribution arm, and SelectBuild, a turnkey building operation. About 5,500 people are employed by the company, according to court documents.
In this year's ProSales 100, BMHC posted the largest sales decline in 2008 of any dealer on the list: dropping nearly 41% to $1.3 billion. The dealer slashed about 5,800 jobs last year, about a third of its total workforce.
BMHC has also motioned the court to reject 39 office, warehouse, and lumberyard leases. Additionally, the nation's sixth-largest dealer is asking the court to reject about 13 subleases.
In the majority of cases, the property leases run into 2010 and 2011, with several set to expire this year, court documents show. BMHC said it has already exited business at the locations or plans to in the coming months. In total, BMHC said, it is paying about $558,000 per month on the leased locations.