TimberHP, the wood fiber insulation manufacturer in Madison, has filed a voluntary Chapter 11 reorganization plan in U.S. Bankruptcy Court.
According to court filings, TimberHP ran into delays and unexpected costs when retrofitting its facility at the Madison paper mill because of inflation and supply-chain issues.
That has in turn delayed the launch of its third product, TimberBoard, which company officials say is expected to be its most profitable. The company set out to raise an additional $60 million in recent years, but ultimately managed to bring in just half that amount, prompting the organization to file for protection.
But in a statement, company leadership said it expects to emerge from the process with stronger financials for long-term success. And in the meantime, business will “continue as usual and without interruption.”
Court fillings note the reorganization will also preserve all of the company’s 54 full-time employees, and the creation of 66 more jobs when production is fully operational.
This article appears through a media partnership with Maine Public.
