By David Wiwchar

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.

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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.