SAN Group asks for protection

Dec 6, 2024 | 10:08 AM

The SAN Group has applied for financial protection after creditors began calling in almost $200 million in loans and unpaid debts.

According to documents filed in BC Supreme Court last Friday, SAN Group owes $107 million to the Royal Bank of Canada, $43 million to the Business Development Bank of Canada, $22 million to the B.C. government for stumpage fees, and $5 million to the Canada Revenue Agency.

They also owe their employees more than $400,000 in vacation pay.

In his affadavit, company co-owner Suki Sanghera pointed to decreased lumber prices that started in 2022 and the summer 2023 closure of Highway 4 as the beginning of SAN Group’s financial problems.

Then in April, their Acorn Sawmill in Delta burned down, and company officials are still working to prove their insurance claim.

In affadvits filed with BC Supreme Court, SAN Group owners list assests in excess of $200 million and say they intend to begin a sales and investment solicitation process.

A court-appointed monitor is supervising current limited operation of the mills.

SAN Group owners intend to begin a sales and investment solicitation process in order to pay off their bills.

We contacted the company for comment but have yet to hear back.