12/19/17 Recap: Publicly-traded ($RNTK) Colorado-based wood fibre processing company that services large pulp, paper and packaging manufacturers with three core businesses: (i) contract wood handling and chipping services; (ii) the manufacture and sale of wood pellets for the U.S. heating market; and (iii) the manufacture, aggregation, and sale of wood pellets for the utility and industrial power generation market, has filed for bankruptcy to effectuate a sale to FFI Acquisition Inc. as buyer (Scott Davis Chip Company Inc. is the affiliate guarantor of the buyer). The company's wood fibre is used in the manufacturing of boxboard, containerboard, paper, and medium density fiberboard for building products. The company blames a strategic pivot from the development and commercialization of certain alternative energy tech to the the wood fibre processing business for its ultimate downfall. The company incurred debt to complete various acquisitions and cost overruns in connection with the development of various facilities combined to limit the company's liquidity. Now, the company intends, under cover of the use of cash collateral, to use pursue a plan pursuant to a plan of reorganization.
Jurisdiction: D. of Delaware (Judge Sontchi)
Capital Structure: $19.5mm Term Loan (GSO/Credit Suisse AG), $20mm L/C (Bank of Montreal)
Company Professionals:
Legal: Latham & Watkins LLP (Peter Gilhuly, Kimberly Posin, Adam Malatesta) & (local) Young Conaway Stargatt & Taylor LLP (Michael Nestor, Matthew Lunn)
Financial Advisor: RPA Advisors LLC
Claims Agent: Prime Clerk LLC (*click on company name above for free docket access)
Other Parties in Interest:
Prepetition Term Lenders (GSO Special Situations Master Fund LP, GSO Palmetto Opportunistic Investment Partners LP, GSO Credit-A Partners LP, Steamboat Credit Opportunities Master Fund LP, GSO Coastline Credit Partners LP, GSO Cactus Credit Opportunities Fund LP, and GSO Aiguille des Grands Montets Fund II LP)
Legal: Akin Gump Strauss Hauer & Feld LLP (Ira Dizengoff, Daniel Fisher, Kevin Eide) & (local) Richards Layton & Finger PA (Paul Heath, Joseph Barsalona)
