💥New Chapter 11 Bankruptcy Filing - Restoration Forest Products Group💥

Invesco set to take over sustainable forestry and wood products manufacturer.

On January 29, 2024, Restoration Forest Products Group LLC (“RFOR”) and three affiliates (collectively, the “debtors”) filed straddle prepackaged chapter 11 bankruptcy cases in the District of Delaware (Judge Owens).

Founded in ‘08, Restoration Forest Products Group (“RFOR”) is a sustainable forestry and wood products manufacturing company. The company operates out of Northern Arizona next to the world’s largest ponderosa pine forest, which is apparently the most versatile wood found in North America. The company has roughly 150 employees and operates out of a ~425,000 square foot manufacturing facility producing 121-thousand-foot board measure per year of lumber. 

The debtors’ business is split into three categories: forestry, manufacturing, and distribution. Foresty involves harvesting timber, manufacturing involves turning the logs into value-added wood products, and distribution involves using their in-house fleet of trucks to transport products to buyers. 

Lumber companies actively seek contracts from the US Forest Service (“USFS”), which gives them a reliable stream of business for up to 10 years (and also explains why the US Department of Justice has made a “notice of appearance” in the case). RFOR received its first contract in ‘12, which granted it the ability to harvest up to 30k acres per year over a 10-year term. Over the term, the company struggled to harvest at that level, however, and only harvested about 15k acres per year. 😬