Tseshaht out $300,000 in Pallan bankruptcy

The Tseshaht First Nation is out more than $300,000 after a Campbell River logging company that owed it money declared bankruptcy

The Tseshaht First Nation is on the hook after a Campbell River logging company that owed it money declared bankruptcy.

Campbell River-based logging company Pallan Timber Group announced last fall that it was bankrupting at least one of its sub-companies: Howe Sound Forest Products.

The Pallans are involved in logging, lumber sales, real estate and other ventures.

A first meeting of creditors took place Dec. 11 in Campbell River. In a copy of the list of creditors, one of the unsecured creditors is CISAA Forestry LLP which is operated by the Tseshaht First Nation. The company is shown as being owed $306,588.

The Tseshaht are the third largest creditor behind the Canadian Imperial bank of Commerce and Island Timberlands respectively.

Pallan owes more that $15 million to its creditors: $711,000 to secured creditors; the remainder to unsecured. The Tseshaht is listed as an unsecured creditor.

Several companies were owed thousands which will likely not be recovered. “The company got into trouble…we got big too quick…and the bank refused our offer,” Derick Pallan said. “There’s no more money.”

Repeated requests for interviews with Tseshaht First Nation Chief Councillor Hugh Braker weren’t returned.

Senior managers warned tribal officials not to do business with Pallan, former Tseshaht CEO Cindy Stern said.

Stern has more than 30 years of experience in the forest industry. She also served as CEO of Tseshaht for more than five years.

According to Stern, former forestry manager Rob Hunter drew up a request for proposals for some forestry work. The RFP was initially awarded to TimberWest, but the company couldn’t fulfill all of the terms of the contract. Pallan was recommended to do the work and Stern advised against it.

When asked who she advised not to go with Pallan, Stern said “You’ll have to ask the administration that question.”

Hunter left Tseshaht in May. Stern left in June. The final decision to go with Pallan was made later.

“I’m not comfortable commenting about decisions that were made after I left,”  Stern said.

Pallan initially tried to restructure the company last fall, even appointing accounting firm KPMG to act as a receiver, but the plan broke down and subsequent bankruptcy proceedings started.

reporter@albernivalleynews.com

Twitter.com/AlberniNews

— With files from the Campbell River Mirror

Just Posted

Alberni Armada boys crowned Island wrestling champs for 19th consecutive year

Alberni wrestlers bring home hardware from Islands, prep for B.C.’s at home

City of Port Alberni sticks to three percent

City council has proposed an annual increase of three percent for residential taxpayers

B.C. BUDGET: Fare freeze, free travel for seniors on BC Ferries

A complete fare freeze will be put into place on major routes, and fares will be rolled back on smaller routes by 15 per cent

Port Alberni’s drug death rate ‘highest on Island’ says medical health officer

British Columbia entered a state of emergency in 2017 over the opioid crisis

BC BUDGET: New spaces a step to universal child care

Fees reduced for licensed daycare operators

VIDEO: Top 10 B.C. budget highlights

The NDP is focusing on childcare, affordable housing and speeding up the elimination of MSP premiums

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Video: B.C. firefighters featured in quirky video

Oliver Fire Department posts video about their B.C. volunteer firefighter spring training seminar

OLYMPIC ROUNDUP: Two more medals push Canada into second place

A gold in ski cross and a bronze in bobsleigh as men’s hockey advances to the semis

Vancouver Island job market ever-evolving

Various sectors driving employment in region will be represented at Black Press career fair in Comox Feb. 8

Trudeau reiterates denial of Sikh separatists in cabinet, condemns extremism

“We will always stand against violent extremism, but we understand that diversity of views is one of the great strengths of Canada.”

Canada wins gold in men’s ski cross

Leman earns redemption with ski cross gold; Homan out early

Trump says more must be done to protect children

In a tweet Tuesday night, Trump indicated he wants to strengthen the background check system, but offered no specifics.

Most Read