Structurlam’s creditor Walmart partially objects to bidding procedures

Chicago, May 5 – Structurlam Mass Timber U.S., Inc.’s largest unsecured creditor, Walmart Inc., lodged a limited objection to the bidding procedures which are the subject of a hearing scheduled for Monday, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

Walmart has a $34 million claim against the debtor relating to a timber supply agreement.

The proposed timeline has the sale hearing for assets worth at least $60 million scheduled for May 26.

Walmart is concerned that the timeline does not leave potential bidders enough time to complete due diligence, or give new bidders opportunity to emerge post-petition.

Walmart recognizes there are constraints being imposed by the DIP lender. However, the creditor recommends extended the bidding procedures by at least 14 days.

Additionally, Walmart does not agree with the bid protections for the stalking horse purchasers. The company finds the $2.4 million, or 4%, bid protections inappropriate for a fast-tracked and non-complex 363 sale requiring the stalking horse purchaser to lock up funds for only a short period of time.

With the bid protections and the $500,000 overbid requirement, Walmart is worried about the unintended consequence of chilling bidding. Walmart askes for a 2.5% bid protection instead.

The debtor is a manufacturer of mass timber solutions has headquarters in Penticton, B.C. The company filed Chapter 11 bankruptcy on April 21 under case number 23-10497.

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