BMHC Receives Court Approval to Continue Fulfillment of Customer Contracts and Warranties

BOISE, ID -- Building Materials Holding Corporation, a leading provider of building materials and construction services to professional residential builders and contractors, announced that it has received interim authorization from the U.S. Bankruptcy Court in Delaware to, among other things, continue to meet its obligations to customers, including the fulfillment of contracts and the honoring of all warranties on normal terms in the ordinary course of business. The Company also has received Court approval to continue to meet its obligations to suppliers, employees and subcontractors.

At a hearing this week in Wilmington, Delaware, the Court granted initial approval for BMHC to access a new $80 million in debtor-in-possession (DIP) financing facility from Wells Fargo Bank and certain of its other existing lenders. The Court authorized $40 million to be immediately available to the Company on an interim basis, with the full $80 million accessible upon final Court approval. The Company expects the new financing to provide ample liquidity to meet its ongoing obligations to employees, customers and suppliers during the reorganization process.

"We are very pleased that the Bankruptcy Court in Delaware has approved our First Day Motions and our DIP financing, which allow us to continue business as usual and to meet our obligations to our customers, suppliers and employees," said Robert E. Mellor, Chairman and Chief Executive Officer. "All of our operations are open, and we are continuing to serve our customers with the same focus and dedication as always. We appreciate the support we have seen from both our customers and suppliers as we move forward with this process to make BMHC financially stronger for the long term."

BMHC will maintain normal operations and continue to pay employee wages, salaries and benefits in the usual manner. The Company intends to make payment for goods received and services provided to it on or after the filing date in the normal course of business and in accordance with the terms of existing supplier agreements. In addition, under its proposed Plan of Reorganization, the Company expects to pay in full suppliers of goods provided in the 20 days prior to filing and those with claims of under $5,000.