Restoration Forest Products gets interim DIP access; plan hearing set

By Sarah Lizee

Olympia, Wash., Feb. 1 – Restoration Forest Products Group, LLC received interim approval of a $95 million debtor-in-possession financing package from funds managed by Invesco Senior Secured Management, Inc., according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The financing consists of $29 million in new money multi-draw term loans, with the remaining amount being a rollup of prepetition bridge debt, as previously reported.

UMB Bank, NA is the administrative agent on the DIP financing, which will bear interest at 11% per annum and mature on May 31, 2024.

Fees include a $725,000 closing fee, $17,500 agency fee and 3% exit fee.

Also on Thursday, the court scheduled a combined hearing on approval of the Chapter 11 plan and disclosure statement for March 27.

Upon completion of the Chapter 11 process, Invesco will become the new majority owner of the company in partnership with the existing equity sponsor, Lateral Investment Management.

Restoration Forest Products’ current capital structure includes about $64.34 million in bridge loans with Invesco, $128.87 million in series A bonds with Invesco, $107.37 million in series B bonds with Lateral and others and a $56.7 million loan agreement with Lateral.

The company intends to complete a restructuring plan that will strengthen its balance sheet and substantially reduce debt.

According to a disclosure statement filed Tuesday, the plan will result in the following:

• Conversion of about $35 million of DIP claims to an exit facility with the balance of DIP claims to receive their ratable share of new class A units, subject to dilution on account of the management incentive plan;

• Discharge of the bridge loan claims with the holders of such claims to receive their ratable share of the new class A units, subject to dilution;

• Discharge of the senior series A bond claims with the holders of such claims to receive their ratable share of new class A units, subject to dilution;

• Discharge of the subordinated series B bond claims with the holders of such claims to receive their ratable share of new class B units, subject to dilution;

• Discharge of about $307 million of prepetition claims in total; and

• Cancellation of equity interests.

The Bellemont, Ariz.-based sustainable forest products company filed Chapter 11 bankruptcy on Jan. 29 under case number 24-10120.

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