Teal-Jones Group Files for Creditor Protection

On April 25, 2024, the Teal-Jones Group of companies (the “Company”) made the decision to file for, and was granted, creditor protection under the Companies’ Creditors Arrangement Act (“CCAA”) by the Supreme Court of British Columbia (the “Court”). Subsequently, on May 9, 2024, the Company obtained a Provisional Recognition Order in the United States Court for the District of Delaware under Chapter 15 of the United States Bankruptcy Code.

The decision to file for creditor protection was not taken lightly but is a necessary step for the Company to address its financial affairs. The Company’s assets outweigh its’ liabilities and therefore the CCAA offers the Company better options and protection to affect a fulsome restructuring, enabling a more stable financial footing for the future. As a result of the filing the Company has been able to obtain additional financing which has enabled them to restart operations. As such, the company has the funding and ability to make payments for post-filing goods and services in the ordinary course of business and will be honoring existing credit terms. Management will continue to operate the business, and a resumption of operations is underway, with a ramp-up taking place over the coming weeks.

The CCAA filing also means the Company is now operating under the supervision of PwC, the Court-Appointed Monitor in the CCAA proceedings. The Court Order and other relevant materials are posted on PwC’s website at www.pwc.com/ca/tealjones. Regular updates will be available on the PwC website alongside contact details for the Monitor’s team.

The Company is undertaking several initiatives as part of the restructuring, these include the identification and sale of surplus assets, and launching of a Sales and Investment Solicitation (“SISP”) process to solicit interest in its operations. The Monitor expects to commence the SISP on May 24, 2024; any parties interested in participating in the SISP should contact the Monitor directly. Additional information pertaining to the SISP can be found at the Monitor’s website noted above.

Regular updates will be available on the PwC website along with contact details for the Monitor’s team. We also invite you to contact your regular representative at Teal-Jones if you have any questions.

Source: The Teal-Jones Group