Update on Teal Jones Sawmill

PLAIN DEALING SAWMILL

STATEMENT

MAY 10, 2024

 

Teal Jones Group, a Canadian forestry products company based in Surrey, British Columbia, has informed local ownership of the Plain Dealing Sawmill that on April 25, 2024 it filed to restructure its assets and liabilities pursuant to the Canadian Companies Creditors Arrangement Act (CCAA). The filing does not include the U.S. 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.

 

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. None of these funds are subject to the CCAA proceedings of the Teal Jone 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.

 

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, part of the Canadian province of British Columbia located in the northeastern Pacific Ocean. Since the filing on April 25, 2024, and because of its strong asset base, Teal Jones Group received an additional $56,000,000 of financing from its lead lender, Wells Fargo, and will reopen all of its mills, including mills in Virginia, Oklahoma, and Mississippi, on May 13, 2024.

 

The Plain Dealing Sawmill will commence operations in the Summer of 2024 and will be fully operational in the Fall of 2024.

 

For media inquiries, please contact:

Brian Fietz, Teal Jones-Plain Dealing, LLC

Email: plaindealing@tealjones.com