Northwest Hardwoods Wins Court Orders Moving Bankruptcy Forward

Bankrupt Northwest Hardwoods Inc. got court permission to keep operating and use cash collateral as it works to confirm a “pre-pack” Chapter 11 plan in January.

One day after the nation’s largest manufacturer of hardwood lumber filed for bankruptcy protection, Judge Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware Tuesday agreed to approve a host of orders authorizing Northwest to function as a debtor-in-possession.

The company’s plan would strip $270 million of debt from its ledgers and significantly reduce debt service expenses going forward, Northwest said in court filings.

The plan is the product of ...