Elliott Greenleaf Selected as Creditors’ Committee Counsel in Klausner Lumber Two LLC Chapter 11 Bankruptcy Case

Firm News

July 15, 2020

Elliott Greenleaf, P.C. was selected as counsel for the Official Committee of Unsecured Creditors in the Chapter 11 case of Klausner Lumber Two LLC (“KL2”), pending in the United States Bankruptcy Court for the District of Delaware. Located in Enfield, North Carolina, the Debtor was formed as one of two sites for the U.S. operations of Austria’s Klausner family of companies, which is one of Europe’s largest softwood timber producers. From two mills in central Germany, the group produces about two million cubic meters of sawn goods annually; KL2 was built to produce 500,000 cubic meters of construction quality timber. The Debtor’s sister mill, Klausner Lumber One LLC, located in Live Oak, Florida, filed under chapter 11 in April 2020, just prior to KL2’s filing on June 10. The mills’ foreign related parties were reported to be having financial issues prior to 2020, culminating in bankruptcy proceedings being filed by two related parties in Austria, with KL2 shutting down operations prior to the onset of COVID-19.  The Official Committee of Unsecured Creditors includes Greenline CDF Subfund XXXIV, LLC, VSC Fire & Security, Inc., and LSAB Sverige Forsalning AB.

Eric M. Sutty will be leading the firm’s efforts in the matter.