GO Lab, Inc., the Madison, Maine-based startup operating as TimberHP that became the only manufacturer of wood fiber insulation in North America, filed a prenegotiated chapter 11 in the District of Delaware in March 2025 after more than $30 million in construction cost overruns and the collapse of a potential acquisition left the company unable to complete its third production line. The plan was confirmed 77 days after the petition date.
The company's operations centered on a 600,000-square-foot former paper mill that had operated continuously from 1899 until Madison Paper Industries closed in May 2016—the fifth major Maine paper mill to shutter in three years, leaving 214 workers unemployed in a town of 4,800 people. GO Lab's founders planned to transform the facility into North America's first wood fiber insulation factory, financing the $125 million retrofit primarily through $85 million in green bonds issued through the Finance Authority of Maine. When pandemic-era supply chain disruptions, inflation, and unexpected engineering challenges pushed costs more than $30 million over budget, the company could not complete the project, prompting a bondholder-led restructuring that converted debt to equity and provided $21 million in exit financing to complete the remaining production line.
Prenegotiated Combined Disclosure Statement and Joint Chapter 11 Plan
Confirmation Date
June 10, 2025
Effective Date
June 23, 2025
Final Decree
August 5, 2025
Days to Confirmation
77
Total Debts
~$120 million
Green Bonds
$85 million
DIP Facility
$10 million
Exit Financing
$21 million
Reorganized Entity
TimberHP, Inc.
Case Snapshot
From Paper Mill to Insulation Factory
The Madison Mill's Century-Long History.
TimberHP operated out of the Madison paper mill, which opened in 1899. The facility produced magazine and insert paper for national publications. The mill was modernized in 1980, when a $200 million plant was constructed to produce coated paper products.
Madison Paper Industries announced its closure in May 2016, becoming the fifth major Maine paper mill to shut down in three years. The closure eliminated 214 jobs and left 600,000 square feet of industrial space vacant in a town of approximately 4,800 residents.
GO Lab's Vision.
Joshua Henry and Matthew O'Malia founded GO Lab, Inc. in 2017 to bring wood fiber insulation technology—developed in Europe over two decades—to North America. Henry is a materials chemist with experience in energy conservation and renewable energy. O'Malia is an architect known for high-performance, cost-competitive designs.
Wood fiber insulation is manufactured from softwood chips left over from sustainably harvested, FSC-certified Maine forests. Europe had established wood fiber insulation businesses, and North America lacked domestic manufacturing capacity.
GO Lab acquired the Madison mill in 2019 with plans to retrofit the facility for insulation manufacturing. The company would operate under the trade name TimberHP, producing three distinct products: TimberFill (loose fill and dense pack insulation), TimberBatt (batted insulation), and TimberBoard (rigid board insulation). Each product line required its own manufacturing equipment and production line within the massive facility.
Product Lines and Market Position.
TimberHP's product portfolio addresses different segments of the construction market:
Product
Description
Status at Filing
TimberFill
Loose fill and dense pack insulation for wall cavities and attics
Operational (production began 2023)
TimberBatt
Batted insulation sized for standard stud bays
Operational (production began February 2024)
TimberBoard
Rigid board insulation for exterior sheathing and continuous insulation
Under construction
All products are manufactured from softwood chips mixed with borate for protection against fire, mold, and insects. The company positioned itself as the only manufacturer of wood fiber insulation in North America, in a market projected to grow at a compound annual growth rate of 5.5% through 2034, reaching $2.34 billion globally.
The $85 Million Green Bond Financing
Financing Structure.
GO Lab assembled approximately $125 to $150 million in financing through a layered structure that combined green bonds, state development loans, tax credits, and private investment. The largest component was an $85 million tax-exempt green bond sale issued by the Finance Authority of Maine (FAME) in January 2022.
Term
Details
Issue Amount
$85 million
Issuer
Finance Authority of Maine (FAME)
Date
January 2022
Underwriter
Citigroup Global Markets
Investors
Fourteen institutional investors managing municipal bond funds
Designation
Green Bonds per ICMA 2021 Green Bond Principles
Opinion Provider
Vigeo Eiris (now Moody's ESG Solutions)
Qualification Basis
Solid waste and recycling bond financing (residual softwood chips)
The bonds qualified for green designation under the International Capital Market Association's 2021 Green Bond Principles, receiving a sustainability opinion letter from Vigeo Eiris. GO Lab qualified for solid waste and recycling bond financing because the manufacturing process uses residual softwood chips—a byproduct of forestry operations that might otherwise go to waste.
State and Local Development Financing.
Beyond the green bonds, multiple state and local development organizations provided additional financing to support the project:
Lender
Amount
Type
Finance Authority of Maine
$500,000
Direct loan (lead lender)
FAME seed capital program
~$860,000
Tax credit financing
Coastal Enterprises Inc.
$250,000
Development loan
Maine Technology Institute
$200,000
Development loan
Town of Madison
Various
Local support
This layered financing structure combined state and local development funding with green bonds and private capital.
Groundbreaking and Construction.
GO Lab held a groundbreaking ceremony in January 2022, with Josh Henry announcing a $130 million-plus investment in the project. The company selected Cianbro Corporation of Pittsfield as lead contractor for the Madison work, while Stantec provided engineering services. The construction would culminate in the installation of three manufacturing lines, with a phased approach that would bring each product line online sequentially.
The first production line—TimberFill—became operational in 2023, allowing the company to begin generating revenue while work continued on the remaining lines. TimberBatt production and sales commenced in February 2024. By early 2025, two of three production lines were operational and generating sales, with only the TimberBoard line remaining under construction.
$30 Million in Cost Overruns
Pandemic Supply Chain and Inflation.
The COVID-19 pandemic disrupted supply chains and triggered inflation precisely as GO Lab's construction project was ramping up. The company's First Day Declaration detailed more than $30 million in cost overruns attributable to multiple factors:
Factor
Impact
Pandemic Supply Chain Disruptions
Delays and cost spikes for construction materials
Steel and Electrical Components
Particularly acute price increases
Inflation
Material and labor cost increases throughout 2022-2024
Substantial modifications required during construction
The Madison mill had been built as a paper plant in 1980, and converting that infrastructure for wood fiber insulation manufacturing required substantial change orders. The retrofit required substantial change orders as contractors encountered unexpected conditions and design modifications became necessary.
Third Production Line Stalled.
While TimberFill and TimberBatt production came online in 2023 and early 2024, the cost overruns exhausted the company's capital before the TimberBoard production line could be completed. Rigid board insulation is used for exterior sheathing and continuous insulation applications.
The company had two production lines operating and the third line incomplete, with additional capital required to complete the project.
Failed Acquisition Transaction.
In early 2025, GO Lab pursued a potential acquisition transaction that would have provided capital to complete the TimberBoard line. The transaction collapsed in February 2025, eliminating the company's expected source of capital and prompting management to consider restructuring alternatives.
Capital Structure at Filing
When GO Lab filed its chapter 11 petitions on March 25, 2025, the company disclosed approximately $120 million in total debts against listed assets of approximately $1 million.
Debt Structure.
Category
Amount
Green Bonds (FAME-issued)
$85 million
Other Secured Debt
~$15 million
Subordinated Debt
~$6 million
Unsecured Loans
~$7.4 million
Unsecured Trade Debt
~$7.3 million
Total Debts
~$120 million
Employees at Filing
54
The bondholders—fourteen institutional investors managing municipal bond funds, led by affiliates of BlackRock—held the senior secured position at $85 million. Their support was required for plan confirmation.
Major unsecured creditor; key to completing TimberBoard
Finance Authority of Maine
Development lender
Government creditor with multiple exposure points
Cianbro Corporation was owed $15 million for construction work as the lead contractor for the project.
DIP Financing and Exit Facility
Bondholder-Provided DIP Financing.
The prepetition bondholders, led by affiliates of BlackRock, provided debtor-in-possession financing to fund the restructuring:
Term
Details
DIP Lenders
Prepetition bondholders led by BlackRock affiliates
DIP Agent
UMB Bank
DIP Commitment
$10 million
Interest Rate
9.5% per annum
Participation Fee
~19.6% of newly issued common stock
Total Bondholder Investment
$29 million (DIP + exit facility)
The bondholders committed $10 million in DIP financing, plus an additional $19 million that would convert to exit financing upon emergence. The $29 million total investment was in addition to their $85 million prepetition position.
GO Lab filed with a prenegotiated Combined Disclosure Statement and Joint Chapter 11 Plan of Reorganization backed by more than 25 creditors. The plan would reduce approximately $100 million in debt through a combination of debt-to-equity conversion and creditor haircuts.
The Modified First Amended Plan set forth the treatment for each class of claims and interests.
Treatment by Class.
Class
Treatment
Recovery
Administrative Claims
Paid in full in cash
100%
Priority Tax Claims
Paid in accordance with Bankruptcy Code
100%
Bondholders (Secured)
Converted to equity in reorganized company
Equity
Cianbro Corporation
~$8 million on $15 million claim
~53%
General Unsecured Creditors
Pro rata distribution from available funds
Limited
Equity Interests
Cancelled and extinguished
0%
The bondholders agreed to convert their debt to equity, becoming owners of the reorganized company. The debt-for-equity swap eliminated the bond debt from the company's balance sheet.
Cianbro's Recovery.
Cianbro Corporation was owed $15 million for construction work and received a 53% recovery, or approximately $8 million.
Post-Emergence Structure.
The plan contemplated a fundamental restructuring of the company's ownership and identity:
Attribute
Details
Reorganized Entity Name
TimberHP, Inc.
Prior Corporate Name
GO Lab, Inc. (retired)
New Working Capital
$21 million
Ownership
Former bondholders led by BlackRock affiliates
Continued Operations
TimberFill and TimberBatt production never paused
The company had been operating under the TimberHP trade name and adopted the TimberHP, Inc. name at emergence.
Market Research Future projects growth in the global wood fiber insulation market:
Metric
Value
2024 Market Size
$1.37 billion
2025 Projected Size
$1.45 billion
2034 Projected Size
$2.34 billion
CAGR (2025-2034)
5.5%
North America Position
Largest market share in 2025
The wood fiber insulation market is projected to grow from $1.45 billion in 2025 to $2.34 billion by 2034, representing a compound annual growth rate of approximately 5.5%. North America accounts for the largest market share in 2025.
Competitive Landscape.
The wood fiber insulation market includes European manufacturers that have produced wood fiber insulation products for decades:
Company
Country
Products
Gutex
Germany
Rigid boards, flexible batts
Pavatex
Switzerland
Rigid boards, blown insulation
Soprema
France
Rigid boards, acoustic products
Steico
Germany
Full product range
These manufacturers have supplied the North American market through imports. TimberHP is the only North American manufacturer.
Frequently Asked Questions
What caused GO Lab to file bankruptcy?
More than $30 million in construction cost overruns due to pandemic supply chain issues, inflation, and unexpected engineering problems with the mill retrofit, combined with the collapse of a potential acquisition in February 2025, left the company unable to complete its third production line.
What is TimberHP's market position?
TimberHP is the only manufacturer of wood fiber insulation in North America. The global wood fiber insulation market is projected to grow to $2.34 billion by 2034.
How was the project originally financed?
The primary financing was $85 million in green bonds issued through the Finance Authority of Maine in January 2022, underwritten by Citigroup Global Markets and sold to fourteen institutional investors managing municipal bond funds.
Who owns the reorganized company?
Former bondholders, led by affiliates of BlackRock, converted their claims to equity and now own TimberHP, Inc. They also provided $29 million in additional financing (DIP plus exit facility) to complete the restructuring.
How much did Cianbro recover on its construction claim?
Cianbro Corporation, owed $15 million for construction work, received approximately 53% recovery (~$8 million) under the confirmed plan.
Did manufacturing operations continue during bankruptcy?
Yes. TimberFill and TimberBatt production and sales continued without interruption throughout the restructuring.
What is the status of the TimberBoard product line?
Cianbro remobilized upon emergence to complete the TimberBoard production line. The company expects to bring certified TimberBoard to market by the end of 2025.
How long did the chapter 11 case take?
From petition (March 25, 2025) to confirmation (June 10, 2025) was 77 days. The final decree closing the cases was entered August 5, 2025—just 133 days after the petition date.
What exit financing was provided?
The company emerged with $21 million in new working capital from the converted DIP facility and additional exit financing.
What is the significance of the Madison mill?
The 600,000-square-foot facility was home to a paper mill from 1899 until 2016. GO Lab acquired the mill and retrofitted it for wood fiber insulation manufacturing after the 2016 closure that eliminated 214 jobs.
Who is the claims agent for GO Lab?
Omni Agent Solutions, Inc. serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.
Final Decree /documents/02128fc8-43ba-4b8a-aaec-a4cd4f71301f/
wood fiber insulation https://www.timberhp.com/
closed in May 2016 https://downeast.com/features/where-theres-a-mill-is-there-a-way/
green bonds issued through the Finance Authority of Maine https://www.bondbuyer.com/news/bond-financed-maine-insulation-company-files-for-bankruptcy
Joshua Henry and Matthew O'Malia https://www.mainebiz.biz/article/business-leaders-at-timberhp-joshua-henry-matthew-omalia-drive-change-in-a-legacy-industry
acquired the Madison mill in 2019 https://www.wabi.tv/2022/01/20/go-lab-inc-holds-groundbreaking-ceremony-new-manufacturing-facility-madison/
5.5% through 2034 https://www.marketresearchfuture.com/reports/wood-fiber-insulation-market-24951
$85 million tax-exempt green bond sale https://www.timberhp.com/go-lab-inc-closes-85-million-green-bond-sale-new-markets-tax-credit-nmtc-transaction
collapsed in February 2025 https://www.centralmaine.com/2025/03/25/madisons-timberhp-files-for-bankruptcy/
$21 million in new working capital https://www.prnewswire.com/news-releases/timberhp-exits-chapter-11-with-strengthened-balance-sheet-roadmap-for-long-term-financial-stability-and-growth-302495824.html
expected to save 50 existing jobs and create an additional 66 positions https://www.mainebiz.biz/article/with-debt-funding-madison-manufacturer-timberhp-outlines-reorganization-plan
Cianbro Corporation remobilized on-site in Madison https://www.centralmaine.com/2025/06/25/madisons-timberhp-emerges-from-chapter-11-bankruptcy-with-eye-on-sustainable-future/
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.