Klausner to Seek Ch. 11 Plan Votes After Settling With Creditors

Klausner Lumber One LLC reached a global settlement with creditors to resolve $180 million worth of claims, allowing the bankrupt Florida sawmill to send its Chapter 11 plan for a vote.

The settlement, detailed in plan disclosures approved Thursday, includes resolution of $40 million in secured claims, Klausner’s attorney, Alison M. Ladd of Westerman Ball Ederer Miller Zucker & Sharfstein LLP, said at a virtual hearing. The agreement also contains mutual liability releases for all parties, she said.

The deal also settles Klausner’s dispute with pre-bankruptcy lender Florida Sawmills LP, which agreed to accept $19 million on a $76 million ...