- June 16 -- BMHC Expects Profitability By Years End Story
- June 16 -- BMHC Gets Court OK to Continue Operating Story
- June 16 -- Building Materials Holding Corp. Enters Chapter 11 Story
Building Materials Holding Corp. (BMHC), as part of its Chapter 11 reorganization plan, has asked the U.S. Bankruptcy Court to reject 39 office, warehouse, and lumberyard leases. The nation's sixth-largest dealer is also 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.
BMHC has motioned the court to reject the leases effective June 16, 2009, the date the company filed for protection from creditors under Chapter 11 of federal bankruptcy law.
Along with the property, BMHC has asked the court to reject more than 80 leases on trucks and vehicles it operated.
BMHC presently operates 31 distribution yards, 43 manufacturing facilities, and five construction services facilities. It has two main operations: BMC West, a building materials dealership, and SelectBuild, a turnkey building operation. About 5,500 people are employed by the company, according to court documents.
BMHC's next date in court is a July 1 hearing in Wilmington, Del., where it will seek approval of its interim financing plan. The dealer's reorganization plan calls for it to maintain normal operations and continue to pay employee wages and benefits in the usual manner.
On June 16, the bankruptcy court granted initial approval for BMHC to access an $80 million in debtor-in-possession financing facility from Wells Fargo Bank and other lenders. BMHC has been permitted by the court to use $40 million of the credit facility immediately, with the full $80 million available upon final court approval on July 1.
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.