Stock Building Supply's disclosure statement, pre-packaged plan OK'd

By Jennifer Lanning Drey

Portland, Ore., June 15 - Stock Building Supply Holdings, LLC received court approval for its pre-packaged plan of reorganization and related disclosure statement Monday from the U.S. Bankruptcy Court for the District of Delaware, according to attorneys.

The company expects to emerge from bankruptcy in the coming weeks, according to a Stock news release.

"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," Joe Appelmann, chief executive officer of Stock, said in the release.

Stock said it has not drawn on the $100 million debtor-in-possession loan it obtained from Wolseley.

As previously reported, Stock filed for bankruptcy after an affiliate of the Gores Group, LLC acquired 51% of the business from Wolseley plc.

As part of the transaction, Gores committed to invest $75 million in the company and provide a $125 million revolving credit bridge facility, subject to completion of the bankruptcy process.

The company previously said the new capital is intended to ensure a stable ongoing business model and allow the company to pay all of its creditors' claims in full.

Wolseley will retain a 49% interest in the business.

Plan creditor treatment

Specific plan creditor treatment will include:

• Holders of non-priority tax claims and general unsecured claims will recover 100% in cash;

• Holders of secured claims will recover 100%, either through reinstatement of the claim, in cash or through surrender of the collateral securing the claim, at the company's option; and

• Equity interests will be reinstated.

Stock, a Raleigh, N.C.-based supplier of building materials to professional home builders and contractors, filed for bankruptcy on May 6. Its Chapter 11 case number is 09-11554.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.