BuildDirect Raises $43 Million, Emerges from Creditor Protection Status

BuildDirect (Vancouver, B.C.) announced that after five months, it has raised enough funds to exit court protection from its creditors in the U.S. and Canada, with $4 million of debt remaining.

The online building materials supplier says it raised $28 million in new funds and converted $15 million of interim financing for a total of $43 million since filing for protection. Its financial restructuring was aided by investor Mohr Davidow Ventures.

Creditors voted this month to convert $58 million of the company’s debt to equity, leaving it with $4 million in debt.

“Today marks a defining moment for BuildDirect,” said CEO Dan Park in a statement. “… I am confident customers and sellers alike will soon recognize the signs of a newly energized and well capitalized business poised for success.”

While it will still service homeowners, the company said it plans to focus more of its efforts on serving contractors.

BuildDirect was granted Chapter 15 of the U.S. Bankruptcy Code and the Companies’ Creditors Arrangement Act (CCAA) in Canada in late October 2017, and owed $75 million to three lenders at the time.

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