Court Confirms Stock Building Supply's Plan of Reorganization
Stock Building Supply's Reorganization Plan Confirmed by Court
RALEIGH, N.C. -- June 15, 2009 -- Stock Building Supply Holdings, LLC ("Stock"), today announced that the United States Bankruptcy Court for the District of Delaware (the "Court") has entered its order confirming Stock's Chapter 11 Plan of Reorganization (the "Plan"). The confirmation order paves the way for the company to emerge from Chapter 11 within the coming weeks.
"The Court's confirmation of our
Plan is a major milestone in the recapitalization of our business," said Joe
Appelmann, Stock Building Supply President & CEO. "We have taken a very hard
look at our business, taking proactive steps to reshape the company and realign
it with the current market reality. The reorganization process will allow us to
emerge as a stronger company, better positioned to continue to deliver
exceptional service to our customers. I want to thank all of our hardworking
associates around the country who, throughout this difficult chapter in our
history, have maintained their focus and dedication to providing the
Immediately preceding the filing of its Chapter 11 recapitalization plan, Stock announced a new ownership structure under which The Gores Group owns 51% of the company and Wolseley plc, the company's former parent company, maintains a 49% stake. As part of the transaction, Gores has committed to invest $75 million in the company and to provide a $125 million revolving credit bridge facility. Gores' investment was conditioned upon completion of a voluntary, pre-packaged Chapter 11 process. In conjunction with the pre-packaged recapitalization, Stock arranged for up to $100 million in debtor-in-possession ("DIP") financing from Wolseley, but to date, this line of credit has not been drawn upon.
In addition to facilitating the Gores Group investment, the Chapter 11 recapitalization has enabled Stock to take the actions necessary to focus on markets with the best prospects for growth and ensure the company is well positioned for the housing market upturn.
