An April 7, 2009 story in The Daily Deal continued the publication’s long-running coverage of Venable’s work in support of Smitty's Building Supply Inc.’s reorganization.
The story reported that the company has lined up $14.5 million in exit financing to help fund its reorganization plan. Judge Stephen Mitchell of the U.S. Bankruptcy Court for the Eastern District of Virginia is scheduled to consider the approval of the homebuilding materials supplier's disclosure statement on April 29. If the statement is approved, the reorganization plan would go to confirmation on June 12.
Under the terms of the reorganization plan, the debtor would sell an 8.2-acre parcel of commercial land located in Alexandria, Va., valued at about $9.5 million, some of its equipment and new common stock. The proceeds of the sales would be distributed to creditors.
The founding Smith family would contribute $125,000 in cash and a $250,000 five-year note in exchange for new shares. Their old equity would be wiped out. Other bidders can make rival offers for the shares until April 27. An auction and sale hearing would be held immediately after the disclosure statement hearing if there are competing bidders.
Smitty's and four subsidiaries filed for Chapter 11 protection on Jan. 5, blaming market conditions and internal problems. Founded in 1975, Smitty's is an Alexandria, Va., supplier of homebuilding materials and operates a lumber yard in the Washington area. It plans to exit bankruptcy by late June or early July.
Venable partner Andrew Currie is one of the proposed debtors' counsel and restructuring advisers for Smitty's. Partner Larry Katz and associates Kristen Burgers and Abby Clifton also worked on this matter.