Klausner Lumber Two statement draws objection from largest creditor

By Sarah Lizee

Olympia, Wash., Jan. 12 – Klausner Lumber Two, LLC and its official committee of unsecured creditors’ joint Chapter 11 plan drew a limited objection from the company’s largest creditor, Carolina Sawmills, LP, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Carolina Sawmills said it believes additional information is needed in the statement, including relating to the Klausner group unsecured claim and its treatment under the plan, the claims being settled under the plan, especially with respect to the debtor release being provided to the “released parties” under the plan, administrative expenses and indemnification obligations and the “best interest” test.

And, with respect to the proposed procedures for tabulating votes, Carolina Sawmills objects to certain language that bars creditors from voting if the debtor or committee has served an objection to that creditor’s claim at least 10 calendar days before voting.

Klausner Lumber Two is an Enfield, N.C., sawmill and lumber company. The company filed bankruptcy on June 10, 2020 under Chapter 11 case number 20-11518.

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