Stock Building Supply To Exit Chapter 11
Stock Building Supply announced that it will soon emerge from Chapter 11 within the next few weeks after the United States Bankruptcy Court for the District of Delaware entered its order confirming Stock’s Chapter 11 Plan of Reorganization.
“The Court’s confirmation of our Plan is a major milestone in the recapitalization of our business,” said Joe Appelmann, Stock Building Supply President and CEO. “We have taken a very hard look at our business, taking proactive steps to reshape the company and realign it with the current market reality.” Focusing on markets with the best prospects for growth, the company is said to be well positioned for the housing market upturn.
Last month Supply House Times reported on Stock’s new ownership structure, which The Gores Group owns 51% of the company and Wolseley plc, the company’s former parent company, maintains a 49% stake. As part of the transaction, Gores has committed to invest $75 million in the company and to provide a $125 million revolving credit bridge facility. Gores’ investment was conditioned upon completion of a voluntary, pre-packaged Chapter 11 process.
In conjunction with the pre-packaged recapitalization, Stock arranged for up to $100 million in debtor-in-possession (“DIP”) financing from Wolseley, but to date, this line of credit has not been drawn upon.
Source: Stock Building Supply