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V O L . X X X I N O. V I I I A P R I L 2 1 , 2 0 2 5 22 B A N K I N G / F I N A N C E / I N S U R A N C E F O C U S insulation to build the $20 million Davis Center for Human Ecology completed in 2021. More recently, the college used TimberBatt in the construction of the Collins House, a 46-bed residence hall that opened in 2024. "We were really attracted to the product because of the regional sustain- ability angle," says school spokesman Rob Levin. "It works just as well as any other high-value insulation product." He notes that using a carbon-neutral alternative to fiberglass aligns with the school's goal of becoming a fossil fuel- free campus by 2030. In Westbrook, the Seavey Terraces Apartment Complex completed in 2024 — and leased by the University of New England for student housing – was the first residential development constructed with TimberHP's loose fill and dense pack insulation branded as TimberFill. Developer Jack Soley says that while the original intention had been to use cellulose, TimberHP matched the price which made it a "no brainer" to use a greener alternative. "I don't know what the price would have been, but we certainly couldn't have gotten it from Europe — we couldn't have afforded it," he says. If and when TimberHP comes out with a planned wood fiber board product, Soley says he would be interested in using that in workforce housing construction. He's developing projects in partnership with Avesta Housing and Hebert Construction CEO Tim Hebert through a venture called Domus. "Right now we all use a plastic insu- lation board that's petroleum-based and horrible for the environment," Soley says. "If they [TimberHP] can produce a wood-fiber board that performs equally in terms of insulation quality, then a lot of folks like myself would pay a little bit extra to do the right thing." TimberHP does indeed plan to make a product called TimberBoard, which it is banking on to become its biggest revenue and profit generator. However, those plans remain stalled by unbudgeted cost increases and $30 mil- lion in construction cost overruns. In legal filings, TimberHP blames inflation and pandemic-related sup- ply chain constraints for the spike in expenses, particularly the price of steel and electrical components. e company also mentioned unexpected engineering problems associated with retrofitting the mill that resulted in substantial change orders. Court fil- ings show that Cianbro Corp., Maine's largest construction firm, is still owed $15 million for its work on the project. It would get only 53% of that amount according to the restructuring plan that still requires judicial approval. Asked whether the Pittsfield- based company supports the plan, Cianbro spokeswoman Shelby Hartin says, "We want TimberHP to come out of this successfully and vibrantly. We're doing what we can to protect our interest and theirs." Raising equity and debt Between 2019 and 2024, TimberHP raised equity and took on millions in debt to finance the purchase and redevelopment of the Madison property, buy equipment and fund operations. On the equity side, the company raised an initial $40 million in 2021. But its attempt in 2023 to raise another $60 million to complete construction of the factory with a third production line fell far short of the target, bringing in only $31 million. e company also enlisted lending help from public entities including $400,000 from the town of Madison, $3.5 million from the Maine Venture Fund that was never converted into equity as per the arrangement; and from the Finance Authority of Maine. FAME also arranged the 2021 sale of $85 million in tax-free bonds to 14 institutional investors that manage large municipal bond funds. TimberHP used the proceeds to finance construc- tion of its manufacturing facility. e restructuring plan anticipates bond- holders who choose not to participate in the restructuring plan will get 2% of » C O N T I N U E D F RO M P R E V I O U S PA G E R E N D E R I N G / C O U R T E S Y O F N E W V E N T U R E S The Seavey Terraces apartment complex in Westbrook, completed in 2024, used TimberHP wood fiber insulation. "The Comeback Mill" is a documentary film about TimberHP by Josh Gerritsen, an independent film maker based in Rockport. He estimates that more than 1,000 people have seen the film to date. D O C U M E N TA R Y S T I L L S / C O U R T E S Y O F J O S H G E R R I T S E N

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