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Klausner Lumber Two auction set for 10 December

03.12.2020 − 

On 18 November, the U.S. Bankruptcy Court in Wilmington, Delaware, approved the sales of the assets and other assets of Klausner Lumber Two and set 10 December as the date for the auction. The court also confirmed Mayr-Melnhof Holz (MM-Holz) as stalking-horse bidder, to whom appropriate protection measures are granted. A purchasing agreement between Klausner and MM-Holz had already been drafted beforehand on 6 November, in which MM-Holz is offering US$30m in cash for Klausner’s assets in Enfield, North Carolina, plus assumed liabilities and including outstanding payment obligations to the county. Other potential interested parties must register their interest with the court and submit an appropriate bid by 4 December. The court will then name the baseline bidder in the run-up to the auction.

One day before the court’s decision, Carolina Sawmills had raised an objection against parts of the sale procedure applied for by Klausner Lumber Two. Carolina Sawmills, which had granted Klausner Lumber Two a loan of US$75m, is a creditor in the ongoing Chapter 11 proceedings. The court has also decided to allow Carolina Sawmills to act as “consultation party”. Similar to Klausner Lumber One, Carolina Sawmills is controlled by insiders from Klausner Lumber Two.

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