Tennessee builder files for bankruptcy
Greenvale Homes, one of the largest builders in central Tennessee, has filed for Chapter 11, according to an article in The Tennessean. Listed among its major unsecured creditors are 84 Lumber in Murfreesboro, which is owed $76,521, and appliance seller HH Gregg in Indianapolis, which is owed $20,533. Local creditors include Smyrna Ready Mix in Murfreesboro, Thomas & Sons Electric in La Vergne and Wall to Wall Floor Covering in La Vergne.
Headquartered approximately 30 miles outside of Nashville, the Murfreesboro-based builder lists 13 subdivisions on its website. Greenvale listed liabilities of between $10 million and $50 million and assets of less than $50,000. It has been in business for 15 years.
Cerberus commences BlueLinx offer
Cerberus ABP Investor commenced its tender offer for all the publicly held outstanding shares of BlueLinx Holdings today. The affiliate of Cerberus Capital Management, which currently owns 55.4% of the LBM distributor’s common stock, is offering $3.40 a share. The offer is set to expire at midnight on Aug. 27, 2010.
Based on filings with the Securities and Exchange Commission (SEC), Cerberus owns 18.1 million shares, and officers and director of the company own 3.02 million shares, excluding options. That leaves an estimated 11.5 million shares that Cerberus has offered to purchase to take the Atlanta company private.
The deal is contingent, however, on Cerberus owning at least 90% of the outstanding shares when the tender offer is complete, according to SEC filings.
Although the BlueLinx board of directors is required by the SEC to issue a recommendation to its shareholders, the board’s approval is not required for Cerberus to take over the company. The BlueLinx board has already appointed a committee to evaluate the Cerberus offer. A number of law firms are also threatening shareholder lawsuits in connection to the tender offer and the price of the stock.
Sales rise at Huttig
Huttig Building Products, the St. Louis-based distributor, reported net sales of $134 million for the three-month period that ended June 30, 2010, an 11.7% rise over sales of $120 million during the same period in 2009.
The company posted a $2.3 million loss for the quarter, compared with a $6 million loss during the corresponding quarter in 2009.
Sales during the 2010 period increased in millwork by 22% to $61.7 million and in wood products by 35% to $14.8 million, the company said in a filing with the Securities and Exchange Commission (SEC). Building products sales decreased by 2% to $57.4 million, however.
Huttig is a two-step distributor of lumber, panels, decking, windows, doors, fasteners and other building materials. The company serves 41 states through 27 distribution centers.