Building Materials Holding Corp., operating under Chapter 11 since June, received approval for its disclosure statement in U.S. Bankruptcy Court in Delaware.
The Boise, Idaho-based dealer and construction services provider can now begin soliciting approval of its reorganization plan from BMHC's creditors. In an Oct. 22 statement issued by the company, BMHC said it "remains on track to complete its financial restructuring" and emerge from Chapter 11 by the end of 2009.
According to an amended disclosure statement filed by BMHC on Oct. 1, the dealer's plan calls for its secured lenders to convert debt into equity and then become majority owners of the company when it emerges from bankruptcy protection. A court hearing to confirm the plan is scheduled for Dec. 10.
BMHC first issued a disclosure statement on June 16, amended it on July 27, and then amended it again on Oct. 1. BMHC's lenders have committed $103.5 million in exit financing. The latest ruling allows the company to complete its restructuring process.
"We are pleased that BMHC has reached another important milestone in executing our balance sheet restructuring and putting our Company in a financially stronger position for the future," Robert E. Mellor, BMHC chairman and CEO, said in a prepared statement.
"With far less debt and a healthier capital structure, BMHC will enjoy new opportunities ahead, while remaining as committed as always to our customers and partners," Mellor said.
BMHC was the No. 6 dealer on this year's ProSales 100, with total sales in 2008 of $1.3 billion. But in the 12-month period ended Aug. 31, BMHC's revenue had shrunk to $842 million, its assets were worth $406 million and its liabilities totaled $459 million.