Structurlam responds to bid procedures objections, amends some terms

By Sarah Lizee

Olympia, Wash., May 8 – Structurlam Mass Timber U.S., Inc. responded to limited objections to its proposed bid procedures from the official committee of unsecured creditors and its largest unsecured creditor, Walmart Inc., and informal comments from the U.S. trustee overseeing the case, in documents filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

“The debtors worked diligently to resolve the informal comments by discussing with those parties the concerns raised and, in some cases, revising the bidding procedures and proposed form of bidding procedures order,” the company said in its response.

Along with the response, the company filed a redline showing changes to the bid procedures.

As previously reported, Walmart had asked for a 14-day extension of the proposed timeline of the bid procedures. Structurlam said the request is “misaligned with the realities of these Chapter 11 cases,” because the company needs to ensure the continued support of the stalking horse purchaser, Mercer International Inc., and prepetition lender and debtor-in-possession lender Bank of Montreal, without which the value of the debtors’ estates could be jeopardized.

According to the redline, the debtor did agree to extend the bid deadline to May 23 from May 18, but kept other dates, including the May 24 auction and May 30 sale hearing, the same.

Structurlam also defended the proposed bid protections for Mercer, and said the provisions are consistent with similar protections approved in other large Chapter 11 cases in Delaware and are necessary to preserve the value of the debtors’ estates.

The company is proposing a $1.8 million breakup fee and a $600,000 expense reimbursement.

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

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