San Group Files for Creditor Protection

Langley, BC-based San Group, which operates two sawmills and a remanufacturing plant in Port Alberni, has filed for creditor protection, the Times Colonist reported (12-8-24).

Deloitte Restructuring was appointed monitor in BC Supreme Court on November 29th. The matter returns to court on December 9th to plan the next steps. The monitor was appointed after the San Group asked the Court for protection under the Companies’ Creditors Arrangement Act.

The company, which buys its logs on the open market, has imposed layoffs and curtailments at its sawmills and value-added plant in Port Alberni in recent weeks because of a shortage of logs.

The company’s goal is to seek approval for a court-supervised sale and investment-solicitation process that the monitor would run in consultation with the main secured creditors. RBC says it is owed C$100 million, and the Business Development Bank of Canada says it is owed C$43 million, according to the petition.

The province has said it is owed C$22 million in stumpage fees, and liens were placed on some properties this year. San Group disputes the amount owed.

The monitor is overseeing the firm while it operates, to keep an eye expenses and spending and to report back to the court. The federal legislation is intended to give firms in financial difficulty protection from their creditors for a period while they restructure their affairs.