Klausner Lumber One approved to enter $26 million baseline bid deal

By Caroline Salls

Pittsburgh, Aug. 12 – Klausner Lumber One, LLC received court approval to enter into a stalking horse bid agreement with Mercer International Inc., according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

Mercer has agreed to pay $26 million for Klausner Lumber One’s assets, subject to the receipt of higher and better bids as part of a court-supervised auction process.

If Mercer is not ultimately the winning bidder, Klausner will pay it a $520,000 break-up fee and reimburse up to $260,000 of its sale-related expenses.

Competing bids must at least equal Mercer’s proposed purchase price, plus the amount of the break-up fee and expense reimbursement and a $1 million overbid amount.

Klausner is a Live Oak, Fla.-based lumber company. The company filed bankruptcy on April 30 under Chapter 11 case number 20-11033.

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