Structurlam Mass Timber gets access to C$4 million of DIP facility

By Sarah Lizee

Olympia, Wash., April 27 – Structurlam Mass Timber U.S., Inc. received interim approval to access C$4 million of a proposed C$7.5 million debtor-in-possession facility from the Bank of Montreal, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the Structurlam group started proceedings in Canada for its British Columbia-based businesses.

The company entered into a stalking horse agreement with Mercer International Inc. to sell substantially all of its assets in British Columbia and Arkansas for $60 million. The agreement is subject to higher and better offers as part of a court-monitored auction process.

Proceeds from the DIP facility will be used to fund operations throughout the process.

Interest on the loan is 14% per annum.

The facility is set to mature on June 30.

The 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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