Restoration Forest Products Group, LLC (RFOR) has initiated a consensual prepackaged court-supervised process under Chapter 11 of the U.S. Bankruptcy Code, which it expects to complete as expeditiously as possible. Upon completion, Invesco Senior Secured Management, Inc. will become the new majority owner of RFOR in partnership with the existing equity sponsor, Lateral Investment Management.
RFOR 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.
Construction of the facility in Bellemont, Arizona is proceeding on schedule and is expected to be fully completed in the Q2 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. 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.
RFOR has received $95 million in additional financing from funds managed by Invesco Senior Secured Management 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 plans to complete a financial restructuring plan that will strengthen its balance sheet and substantially reduce the Company’s debt.
