Port Alberni-Based San Group of Companies Files for Creditor Protection

As per the affidavit, the company’s financial troubles started last year, when lumber prices witnessed prolonged decline, both domestically and globally.

SEATTLE (Scrap Monster): San Group of Companies, based in Port Alberni, has applied for creditor protection. Notably, the sawmill operator on Vancouver Island owes the province $22 million in unpaid stumpage fees and approximately $14 million to many creditors. The Port Alberni Port Authority and the City of Port Alberni are listed as creditors.

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As per the affidavit, the company's financial difficulties began last year when lumber prices experienced a protracted drop on a national and international level. Higher labor expenses brought on by inflationary pressures and sharply rising interest rates made the problems worse. The demand was increased by the two-week-long port strike in British Columbia and the shutdown of Highway 4 after a wildfire near Cameron Lake.

Citing a lumber scarcity, San Group declared in mid-October of this year that it would be halting operations in Port Alberni for at least two weeks. The mill has not yet resumed operations.

According to the affidavit, the total assessed value of the company's holdings in the Alberni Valley is slightly less than $22 million. The business intends to scale back activities while maintaining creditor protection. In the meanwhile, there are absolutely no intentions to shut down the entire company.

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