Restoration Forest Products Facing Bankruptcy; Invesco to Take Over

The company also announced that it has appointed Anthony J. Flagor, a seasoned sawmill operator, as CEO, effective January 26, 2024.

SEATTLE (Scrap Monster): Restoration Forest Products (RFOR) has filed a consensual prepackaged court-supervised process under Chapter 11 of the U.S. Bankruptcy Code, which will see the company receive $95 million in additional funding from Invesco, and, if the deal is approved by the Court, will come out of bankruptcy with Invesco and its existing equity sponsor, Lateral Investment Management, as its new majority owner.

Restoration received the additional financing from funds managed by Invesco Senior Secured Management, Inc. that will help advance its mission to aid in the restoration of 2.4 million acres of Arizona’s forests and to reduce catastrophic wildfire risk for the region. In connection with the additional financing, RFOR said it plans to complete a financial restructuring plan that will strengthen its balance sheet and substantially reduce the company’s debt. The company also announced that it has appointed Anthony J. Flagor, a seasoned sawmill operator, as CEO, effective January 26, 2024.

RFOR continues to partner with the U.S. Forest Service and the Four Forest Restoration Initiative in leading the largest public-private forest restoration initiative in the United States by investing in a combination of mechanical thinning capabilities and a large-scale manufacturing facility focused on processing smaller-diameter timber into high-quality lumber and biomass residuals. 

Construction of the facility in Bellemont, Arizona, is proceeding on schedule and is expected to be fully completed in the second quarter of 2024, with significant growth in production volume expected over this same timeframe. The Company expects its workforce to increase upon completion of construction, reaching a total of approximately 225 direct and indirect employees. With a world-class facility and expanded talent and capacity to drive its wood products manufacturing operations, RFOR is strongly positioned to significantly expand its forest restoration initiatives while driving substantial value for critical regional stakeholders and investors.

The company expects to continue operating as usual throughout the court-supervised process, including paying employee wages and benefits, and meeting its obligations to its suppliers and vendors in the ordinary course. The additional financing will enable the Company to advance its strategic objectives while continuing to fund its ongoing capital needs until the Bellemont operations achieve economic levels of production in mid-2024. With increased financial flexibility and a strengthened operational foundation, RFOR said it will be better positioned to fulfill its mission of restoring the health of the region’s forests, preventing wildfires and safely producing world-class lumber and value-added wood products.

As the company moves through the process on an expedited basis, it said that it remains committed to continue generating significant economic value in the Northern Arizona region, revitalizing local communities, and delivering for all its stakeholders over the long term.

Courtesy: www.woodworkingnetwork.com

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