BMHC Initiates Restructuring Plan
Building Materials Holding Corp., the provider of building materials and construction services to
builders and contractors, has reached an agreement with creditors on a restructuring plan to strengthen the company’s balance sheet. The parent company of BMC West and SelectBuild,filed for Chapter 11 protection in Delaware this week to implement the pre-packaged restructuring plan, officials report.
BMHC, which has received commitments for $80 million in financing from Wells Fargo Bank and other existing lenders, plans to continue to operate as usual during the restructuring process, it is noted. Most BMHC operations, including a number of door and millwork facilities, are currently located in the West.
Although the company will continue to monitor market conditions and make adjustments in its business as necessary, BMHC does not plan to close any of its facilities or reduce employment levels as a direct result of the filing, officials point out.
“We are very pleased to have reached agreement with representatives of our bank group on a plan that will put our company in a stronger financial position for the future," says Robert E. Mellor, chairman and CEO. "Their support, and the fact that our new financing is coming from existing lenders, is a sign that our business partners have confidence in our strength as a company and our long-term potential. BMHC is an industry leader with a strong market niche and well-recognized brands. We pride ourselves on the quality of our products and services, and our customers should know that this will not change while we undergo this restructuring."
The agreement with lenders caps a series of actions taken by BMHC to aggressively respond to the housing downturn, Mellor continues. "By lowering costs, aligning our expense structure with reduced demand and selectively scaling back our presence in non-core markets where the prospect of recovery is years away, we have made BMHC a leaner, more competitive company.”