Trade War, Pandemic Push Northwest Hardwoods Into Bankruptcy (1)

Northwest Hardwoods Inc., one of the largest makers of hardwood lumber in North America, filed for bankruptcy after shipments to China slowed and the construction industry grew volatile during the pandemic.

Northwest is moving forward with a previously announced deal to hand ownership to creditors in exchange for cutting debt by about $270 million. The company started collecting creditor votes on the plan prior to filing for Chapter 11 protection and will ask its bankruptcy judge to approve the plan in January, court papers show.

The company sought Chapter 11 protection in Delaware, which lets Northwest keep operating while ...