The wood fiber insulation producer is restructuring to eliminate its debt and will continue in operation.
Based in Madison, ME, TimberHP said in court papers that it ran into financial difficulties from delays and unexpected costs retrofitting its paper mill facility because of inflation and supply-chain issues.
The pre-arranged filing is expected to eliminate about $100 million in debt and allow the company to “continue as usual and without interruption,” while retaining its 54-person workforce and even creating an additional 66 positions when it gets back up to speed, according to a report on Mainepublic.org.
The company sells its products under the TimberBatt and TimberFill brands and was in the process of introducing a third brand, TimberBoard, which it said would be its most profitable product. That introduction was delayed due to the debt issue, Mainpublic.org reported.
The bankruptcy petition was filed on March 25 in the U.S. Bankruptcy Court for the District of Delaware, listing up to $1 million in assets and about $120 million in debts.
Image: TimberHP
