Klausner Lumber Two seeks approval of bidding procedures for assets

By Sarah Lizee

Olympia, Wash., Nov. 10 – Klausner Lumber Two, LLC is seeking court approval of the bidding procedures for the sale of substantially all of its assets, according to a motion filed Monday in the U.S. Bankruptcy Court for the District of Delaware.

The debtor is also seeking court approval of a stalking horse agreement with Mayr-Melnhof Holz Holding AG. The agreement provides for a purchase price of $30 million, a break-up fee of 2% and an expense reimbursement of up to 1%.

Competing bids must be equal to or greater than the sum of the stalking horse purchase price, the bid protections and $500,000.

Bids would be due by 5 p.m. ET on Dec. 4.

An auction, if needed, would be held on Dec. 10.

A sale hearing would take place on Dec. 17, and the sale would close on Jan. 8.

Klausner Lumber Two is an Enfield, N.C., sawmill and lumber company. The company filed bankruptcy on June 10 under Chapter 11 case number 20-11518.

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