Stock Building Supply recently announced that the United States Bankruptcy Court for the District of Delaware has entered its order confirming Stock’s Chapter 11 Plan of Reorganization.
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,” saidJoe 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 monthSupply House
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.
Stock Building Supply To Exit Chapter 11
June 16, 2009