Court documents filed Friday reveal that Lyman Lumber, the No. 21 dealer on this year's ProSales 100, had $100.3 million in total liabilities and only $15.5 million in assets when it filed earlier this month for Chapter 11 reorganization.
The Minnesota-based firm also posted year-to-date revenue of $15.4 million, which appears to put the company on track for well below the $37.4 million in revenue that it posted last year. According to documents filed in U.S. Bankruptcy Court in Minnesota the company's largest creditors include U.S. Bank NA, which it owes more than $21 million; TCF Bank, which it owes $8.2 million; and the Central States Pension Fund, which is owed $7 million.
Along with filing for bankruptcy on Aug. 4, Lyman Lumber agreed to sell its Midwest operations to SP Asset Management LLC, a New York City-based global diversified company. The company operates six Midwest divisions that cater to professional contractors and lumber dealers, such as supplying building material dealers and jobsite labor.
"Although we are very involved in this reorganization, our primary focus is on our customers and we do not anticipate any disruption in service, in fact, it will appear like business as usual to our customers," said Lyman Lumber's president and CEO Jim Hurd at the time the first Chapter 11 filings were announced.
Hurd said then the sale will allow Lyman Lumber to unload some of its non-performing assets and services and work to secure long-term financing needed to help the company grow. Hurd said the company's land position and construction lending portfolio were the two largest strains on the company and will be part of the assets divested.