SOURCE: Building Materials Holding Corporation

Building Materials Holding Corporation

December 18, 2009 08:05 ET

U.S. Bankruptcy Court Confirms BMHC's Plan of Reorganization

BMHC to Emerge From Chapter 11 at Start of New Year

BOISE, ID--(Marketwire - December 18, 2009) - Building Materials Holding Corporation, a leading provider of building materials and construction services to professional residential builders and contractors, today announced that the U.S. Bankruptcy Court in Delaware has confirmed the Company's Plan of Reorganization, paving the way for BMHC to complete its financial restructuring and emerge from Chapter 11 on January 4, 2010.

"With the Court's ruling yesterday, we can now look forward to completing our balance sheet restructuring quickly," said Robert E. Mellor, Chairman and Chief Executive Officer. "As a result of this process, we will be in a much stronger financial position, having reduced our outstanding indebtedness as of the filing date by approximately $150 million to $135 million upon emergence. In addition, we have streamlined our cost structure significantly and have secured exit financing of $90 million to support our ongoing operations and future growth. All of this puts BMHC in a solid position moving forward. We are excited about the long-term potential of our business and, based on the progress we've made, feel especially well positioned to take advantage of improvements in market conditions and future growth opportunities."

On October 22, 2009, BMHC announced that the Court had approved its Amended Disclosure Statement and authorized the Company to begin soliciting approvals of the Company's Plan of Reorganization from the requisite creditor groups. The Plan provides for BMHC's secured lenders to convert debt into equity, becoming majority owners of the Company upon emergence. On November 16 and December 14, 2009, the Company filed supplements to its proposed Plan of Reorganization, including a list of proposed officers of the Company upon emergence, proposed Board members for the Company's new Board of Directors and an improved exit financing package.

As previously announced, on June 16, 2009, BMHC and all of its subsidiaries voluntarily initiated reorganization cases in Delaware under Chapter 11 of the U.S. Bankruptcy Code. Pursuant to the bankruptcy plan, BMHC's existing common shares held by shareholders will be extinguished and these shareholders will not receive any distributions.

This press release is available on the Company's website at, along with additional information on the restructuring.

About BMHC

BMHC is one of the largest providers of building materials and residential construction services in the United States. We serve the homebuilding industry through two recognized brands: as BMC West, we distribute building materials and manufacture building components for professional builders and contractors in the western and southern states; as SelectBuild, we provide construction services to production homebuilders in key markets. To learn more about BMHC, visit our website at


There are a number of business risks and uncertainties that affect our operations and therefore could cause future results to differ from past performance or expected results. Additional information regarding business risks and uncertainties is contained in Part II Item 1A of our most recent Form 10-Q. These risks and uncertainties may include, however are not limited to:

--  substantial doubt about our ability to continue as a going concern if
    we do not successfully emerge from bankruptcy;
--  our existing common shares held by shareholders will be extinguished
    under our proposed plan of reorganization and these shareholders will not
    receive any distributions;
--  demand for and supply of single-family homes, which are influenced by
    changes in the overall condition of the U.S. economy, including interest
    rates, consumer confidence, job formation, availability of credit and other
    important factors;
--  our ability to maintain adequate liquidity, reduce operating costs and
    increase market share in an industry that has experienced and continues to
    experience a significant reduction in average annual housing starts;
--  our liquidity is dependent on operating performance, an efficient cash
    conversion cycle and compliance with financial covenants;
--  our ability to implement and maintain cost structures that align with
    sales trends;
--  losses of customers as well as changes in the business models of our
    customers may limit our ability to provide building products and
    construction services;
--  intense competition;
--  availability of and our ability to attract, train and retain qualified
--  fluctuations in our costs and availability of sourcing channels for
    commodity wood products, concrete, steel and other building materials;
--  weather conditions including natural catastrophic events;
--  exposure to product liability and construction defect claims as well
    as other legal proceedings;
--  disruptions in our information systems;
--  actual and perceived vulnerabilities as a result of widespread credit
    and liquidity concerns, terrorist activities and armed conflict;
--  costs and/or restrictions associated with federal, state and other
    regulations; and
--  numerous other matters of a local and regional scale, including those
    of a political, economic, business, competitive or regulatory nature.

Risks related to our shares may include, however are not limited to:

--  our existing common shares held by shareholders will be extinguished
    under our proposed plan of reorganization and these shareholders will not
    receive any distributions;
--  price for our shares may fluctuate significantly;
--  our shares may be less attractive as they are only traded on the "pink
    sheets" and are not traded on a large, more well-known exchange nor on the
    OTC Bulletin Board; and
--  anti-takeover defenses and certain provisions could prevent an
    acquisition of our company or limit share price.

Certain statements in this news release including those related to the impact of our restructuring initiatives, the approval of our plan of reorganization, our emergence from bankruptcy and our proposed management team and board of directors are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical or current facts, including statements about our expectations, anticipated financial results and future business prospects are forward-looking statements. While these statements represent our current judgment on what the future may hold and we believe these judgments are reasonable, these statements involve risks and uncertainties that are important factors that could cause our actual results to differ materially from those in forward-looking statements. These factors include, however are not limited to the risks and uncertainties cited in the above paragraph, as well as our ability to timely and successfully obtain approval of our plan of reorganization from the bankruptcy court and emerge from bankruptcy. Undue reliance should not be placed on such forward-looking statements, as such statements speak only as of the date of this news release. We undertake no obligation to update forward-looking statements.

Contact Information

  • For More Information:
    Bill Smartt
    Senior Vice President and Chief Financial Officer

    Mark Kailer
    Vice President and Treasurer

    Lisa Laukkanen
    The Blueshirt Group for BMHC