Klausner Lumber Two, committee request July effective date

Chicago, May 6 – Klausner Lumber Two, LLC and its official committee of unsecured creditors filed a joint motion asking for a two-month extension for the effective date for the Chapter 11 plan, according to a filing with the U.S. Bankruptcy Court for the District of Delaware on Friday.

If the request is granted, the earliest the effective date could occur would be July 8, pushed back from May 9.

The additional 60 days allow for time to deal with an ongoing adversary proceeding between the committee and Carolina Sawmills LP.

The debtor has been served with a non-party subpoena.

The subpoena is broad with 35 demands, many with several sub-parts, and span a timeframe of July 25, 2012 to the present.

The proponents believe the debtor currently has more knowledge regarding the documents requested than the liquidating trustee, and an extra 60 days will give the assistance the liquidating trustee needs from the debtor to help looking through tens of thousands, if not hundreds of thousands, of documents to respond to the subpoena.

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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