TimberHP exits Chapter 11 with long-term growth plan

Aerial view of TimberHP mill in Madison, Mine

File Photo / Courtesy of TimberHP TimberHP, a Madison-based manufacturer of wood-fiber insulation, has emerged from Chapter 11 bankruptcy protection.

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By Renee Cordes

TimberHP, a Madison-based maker of wood-fiber insulation, said it has exited – uncontested – Chapter 11 bankruptcy protection with a strengthened balance sheet and long-term growth plan.

The company, led by CEO and co-founder Matthew O'Malia, filed for bankruptcy protection in March to restructure its debt. Upon exiting reorganization, the company has officially dropped the GO Lab Inc. name and reincorporated as TimberHP Inc.

“The change of legal name symbolizes an exciting fresh start for the company, with a strategy that calls for rapid execution across key areas of TimberHP operations,” the comp;any said in a press release.

The company is based in Madison, in a former paper mill that co-founders O’Malia and Joshua Henry bought in 2018 to produce an environmentally friendly type of insulation that had been used in Europe for 20 years.

"This looks positive to me," said Roger Clement, a bankruptcy partner with Portland-bases law firm Verrill who has followed TimberHP's Chapter 11 case as an outside observer.

"This is the kind of outcome the drafters of the Bankruptcy Code hoped for," he told Mainebiz. "The bankruptcy process provided a platform for new funds to flow into the company. Jobs were saved and the value created by the pre-bankruptcy investments has been preserved."

Next milestone

Cianbro Corp., the general contractor at the mill, is nearing the finish line on building and operating the manufacturing line for the company’s third product, called TimberBoard. TimberHP said it expects to have certified TimberBoard available for sale by the end of this year..

“We are very grateful for the broad support that we have received from creditors, financial partners, the Finance Authority of Maine and other lenders, which has enabled us to successfully complete our restructuring with an exciting opportunity for growth moving forward,” O’Malia said.

“Our team demonstrated incredible commitment and resilience through this transition period, and our improved liquidity and balance sheet provide the chance to execute on our plan to make TimberFill, TimberBatt and TimberBoard mainstream insulations of choice for residential, light commercial and multifamily development projects,” he added.

The company projects sales of TimberFill and TimberBatt, which continued uninterrupted during the Chapter 11 court process, are projected to grow substantially post-exit, as it ramps up production with recently improved products as well as marketing. It also aims to build out its sales force across the Northeast and mid-Atlantic regions.

Henry and O’Malia were honored as Mainebiz Business Leaders of the Year in 2024.

At that time, Henry said that while the company was focused on Madison, “I suspect we will have additional facilities across the country,” in other rural communities."