Restoration Forest Products, a lumber company based in Arizona, filed for bankruptcy on Monday after the pandemic upended construction on a new production facility and a critical governmental contract fell through, Bloomberg News reported. The manufacturer listed liabilities of $367 million and assets of at least $100 million in court documents. The chapter 11 filing lets Restoration Forest Products keep operating while it seeks approval of its bankruptcy plan. The company, which produces everything from lumber to wood chips, has already struck a deal with stakeholders in which it intends to slash more than $300 million in debt. As part of the bankruptcy plan, Invesco has agreed to give the firm $95 million to help finance the court process, according to a statement. After emerging from bankruptcy, Invesco is slated to own the company along with its current equity sponsor, Lateral Investment Management. The plan and financing are subject to court approval. Restoration Forest Products touts its focus on sustainability because it works with the U.S. Forest Service to mitigate wildfire risk by clearing brush and other low-lying plants that can stoke flames. In early 2022, the company raised nearly $200 million in sustainability-linked bonds, according to its website. The bonds were issued by the Arizona Industrial Development Authority and were sold in two parts. About $113 million of Series A bonds were purchased by affiliates of Invesco while about $87 million of Series B bonds were bought by affiliates of Lateral.
