Correct Building Products LLC announced Thursday it will sell substantially all of its assets to a subsidiary of Building Materials Corporation of America (BMCA), and will file for Chapter 11 bankruptcy to do so.
Based in Biddeford, Maine, Correct is a 10-year-old manufacturer of composite decking products. BMCA, which does business as GAF Materials, will add Correct's assets to its existing composite decking business.
"By combining the marketing power of BMCA and the quality of the CorrectDeck CX product, it will mean greater availability for the product and a better solution for the industry," Correct co-founder Martin Grohman said in a statement.
With its Chapter 11 filing, Correct is seeking protection from creditors while it reorganizes. Correct said it it will seek a sale under the bankruptcy code's Section 363, which allows for the sale of assets free of liens and other claims.
"This proposed sale to BMCA and the associated bankruptcy filing have the support of significant creditors, customers and employees," an announcement from Correct said. "... Correct has asked the court to approve a sale process that will allow other interested parties to conduct due diligence and submit higher bids to buy Correct."