Receiver for Columbia Pulp appoints investment banker

SEATTLE–Paladin Management Group, the receiver appointed to direct the business affairs of the recently idled Columbia Pulp I, LLC, has appointed GLC Advisors & Co., LLC, and GLC Securities, LLC, as investment banker for the receiver, according to a supplemental statement filed in King County Superior Court, Judge Douglass A. North. Paladin Management Group advised the court of retaining GLC on June 10, 2022.

Columbia Pulp stopped operations last February, and foreclosure proceedings were commenced in March, but halted when UMB Bank took action to have Columbia Pulp I, LLC placed in receivership.

From November 17, 2021 to April 16, 2022, GLC was engaged by UMB Bank, National Association, as trustee, court documents indicate. Under the indenture dated June 1, 2021, between the Washington Economic Development Finance Authority, as issuer, and the Trustee (UMB Bank, National Association), related to certain bonds issued for the benefit of Columbia Pulp I, LLC and the law firm of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., in its capacity as counsel to the Trustee, pursuant to which GLC was engaged to act as the exclusive investment banker and financial advisor to the Trustee and Counsel, to provide investment banking and financial advisory services. GLC was retained on behalf of and reported solely to the Trustee, Counsel, and the ad hoc group of beneficial owners of the Bonds.

GLC’s compensation for services included a monthly advisory fee of $125,000. A separate financing transaction fee and transaction fee existed but were neither earned nor paid. GLC was additionally entitled to monthly reimbursement from the Trustee for out-of-pocket expenses incurred in connection with services provided. GLC’s engagement with the Trustee was terminated on April 17, 2022. Prior to the Paladin retaining GLC, GLC fully disclosed its prior representation to the Receiver.

Since the Receiver’s appointment, GLC has had no contractual relationship with the Counsel, Trustee or Bondholders, and does not hold nor represent any interest that is adverse to the estate.

Thomas A. Buford is the attorney for Bush Kornfeld LLP of Seattle.