SURREY, British Columbia – Teal Jones Group, a forest products company that filed for bankruptcy protection on April 25, is restarting its three Surrey-based sawmills after securing an interim financing deal. 

The company cited worldwide impacts of decreasing lumber prices and related lumber market challenges, plus financial losses associated with logging rights disputes on Vancouver Island, for its financial woes.

Gerrie Kotze, vice president and CFO of Teal Jones, said in a statement that the company “will ramp up full production over the next few weeks.” The trio of operations most recently employed about 400 people.

Facing financial insolvency, the 78-year-old company filed to restructure its assets and liabilities pursuant to the Canadian Companies Creditors Arrangement Act (CCAA). B.C. Supreme Court Justice Gordon Weatherill approved Teal Jones’ restructuring plan and gave the company until Aug. 1 to carry out its reorganization plans and consider a potential sale.

The bankruptcy proceedings do not impact the Teal Jones sawmill being constructed in Plain Dealing, La. That operation is owned by a holding company that is owned by a Teal Jones Group affiliate and local investors, according to a post on the Bossier Parish, La., government website. The post further notes that Teal Jones Group itself does not own any direct equity interest in the sawmill. 

“Teal Jones-Plain Dealing, LLC has confirmed that the Plain Dealing Sawmill is fully funded and in possession of all funds needed to complete construction and operate the sawmill,” states the Bossier Parish post. “None of these funds are subject to the CCAA proceedings of the Teal Jones Group. The construction and completion of the Plain Dealing Sawmill is proceeding uninterrupted with construction, and lumber equipment installation and commissioning is currently underway. The Plain Dealing Sawmill is currently accepting applications and hiring and interested candidates are encouraged to apply immediately. The plant is anticipated to commence commissioning operations in May, with production to begin during the summer and full production anticipated by the fall of 2024. 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."