Teal Jones-Plain Dealing Sawmill in Louisiana Unaffected by Teal Jones Group Filing for Creditor Protection in BC
Update on Teal Jones Sawmill
On Friday, Bossier Parish, Louisiana, released a statement from Teal Jones-Plain Dealing, LLC explaining that the decision by Teal Jones Group, a Canadian forestry products company, to file for creditor protection in British Columbia does not include the US-based Teal Jones Sawmill in Plain Dealing, Louisiana.
Teal Jones Group does not own a direct equity interest in the Plain Dealing Sawmill, which is owned and operated by Teal Jones-Plain Dealing, LLC. Teal Jones-Plain Dealing, LLC is owned by a holding company that is owned by a Teal Jones Group affiliate and local investors.
On April 25th, Teal Jones Group filed to restructure its assets and liabilities pursuant to the Canadian Companies Creditors Arrangement Act (CCAA).
Teal Jones-Plain Dealing, LLC confirmed that the Louisiana sawmill is fully funded and in possession of all funds needed to complete construction and operate the sawmill. None of these funds are subject to the CCAA proceedings of the Teal Jones Group. The construction of the sawmill is proceeding uninterrupted with lumber equipment installation underway.
The plant is anticipated to commence operations in May, with production to begin during the summer and full production anticipated by the fall. The sawmill will produce a wide range of dimensional and specialty lumber products with plans to sell residual fiber products, including chips and sawdust, to regional pulp and pellet plants.
The Teal Jones Group filing in Canada was made due to the worldwide impacts of decreasing lumber prices and related lumber market challenges, as well as financial losses associated with logging rights disputes on Vancouver Island, according to the statement. Since the filing on April 25th, and because of its strong asset base, Teal Jones Group received an additional $56 million of financing from its lead lender, Wells Fargo, and will reopen all of its mills—including mills in Virginia, Oklahoma, and Mississippi—on May 13th.
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