British Columbia · CCAA
Affidavit of Gerrie Kotze - Part 1, dated April 24, 2024
Affidavit · 24 April 2024
What we verified from this filing6 verified
- financial positionnote: Shareholder's equity valued at $219.9 million as at Feb 29, 2024. Liabilities include current bank indebtedness ~$81.5M, long term obligations ~$204.3M, accounts payable and accrued expenses ~$60.2M, long term payables $7.2M, other current liabilities ~$0.6M · page: 9 · as at: 2024-02-29 · basis: unaudited interim financial statements · scope: consolidated - Petitioners (Teal Jones Holdings Ltd. and its Canadian and US subsidiaries as listed) · currency: CAD · total assets: 732100000 · total liabilities: 353800000
- secured creditorsnote: Total comprised of $54.5 million outstanding under revolving loans, $95.7 million outstanding under term loans, and $10 million outstanding under the bridge loan. Subject to Intercreditor Agreement dated Feb 16, 2023 with HSBC, EDC and BDC governing relative ranking · page: 11 · as of: 2024-04-23 · amount: 160200000 · debtor: Teal Cedar Products Ltd. and Teal Jones Lumber Sales, LLC (borrowers), guaranteed by Columbia River Shake & Shingle, Teal-Jones Group, Teal-Jones Aviation LP, Teal-Jones Aviation GP Ltd., Teal Jones Lumber Services Inc., Teal Jones Lumber, LLC, Teal Jones Holdings USA Inc., Pine Products LLC, Potomac Supply LLC, Teal Jones Dry Kilns LLC, Greentree Lumber Company LLC, and Teal Jones Louisiana Holdings LLC (WF Guarantors) · creditor: Wells Fargo Capital Finance Corporation Canada, Wells Fargo Capital Finance LLC, and Export Development Canada (collectively, the WF Lenders), as administered by Wells Fargo Capital Finance Corporation Canada as agent · currency: CAD · security: General security agreement over all present and after-acquired property of borrowers and guarantors; mortgages and assignments of rents from Teal Cedar Products and Shake & Shingle over certain BC real property. Facility limits: revolving loans up to $110,000,000; M&E term loan principal $28,094,655.17; timber tenure term loan principal $67,000,000; AR1 refund term loan principal $4,100,000; bridge loan facility $10,000,000 (originally advanced amounts, not balances)
- secured creditorsnote: Approximately $41.3 million of secured term debt, plus interest continuing to accrue. Subject to Intercreditor Agreement · page: 12 · as of: 2024-04-23 · amount: 41300000 · debtor: Teal Cedar Products Ltd. (borrower); guarantors: other Petitioners and TJ Louisiana (HSBC Guarantors) · creditor: HSBC Bank Canada, as security agent for HSBC Lenders · currency: CAD · security: General security agreement over present and after-acquired personal property, floating charge over real property; mortgages and assignments of rent over BC real property (Teal Cedar Products, Shake & Shingle); deed of trusts, security agreements, assignment of leases and rents and fixture filings over US real property (Pine Products, Potomac Supply, Lumber Services). Facility limits: non-revolving loan $23,758,520; equipment loan $8,025,000; interest rate swap facility USD$1,500,000; lease financing facility $511,214.90; bridge loan facility $10,000,000 (facility amounts, not balances)
- secured creditorsnote: Approximately $2.6 million owing, plus interest continuing to accrue. Subject to Intercreditor Agreement · page: 12 · as of: 2024-04-23 · amount: 2600000 · debtor: Teal Cedar Products Ltd. (borrower); guarantors: Teal-Jones Group and Teal Jones Dry Kilns LLC (EDC Guarantors) · creditor: Export Development Canada (EDC) · currency: CAD · security: Security interest in present and after-acquired personal and movable property of Teal Cedar Products; unconditional and irrevocable guarantees and security interests from EDC Guarantors. Facility: term facility up to USD$5,500,000.00 (facility limit, not a balance)
- secured creditorsnote: Approximately $31.3 million owing, plus interest continuing to accrue. Subject to Intercreditor Agreement · page: 13 · as of: 2024-04-23 · amount: 31300000 · debtor: Teal Cedar Products Ltd. (borrower); guarantors: BDC Guarantors (Petitioners and TJ Louisiana, with variations by loan) · creditor: Business Development Bank of Canada (BDC) · currency: CAD · security: Security interest in all present and after-acquired personal property of Teal Cedar Products and BDC Guarantors; mortgages over BC real property granted by Teal Cedar Products and Shake & Shingle. Loan amounts: First Loan $25,000,000; Second Loan $4,075,000; Third Loan $5,775,000 (original loan amounts, not necessarily current balances)
- secured creditorspage: 14 · as of: 2024-04-23 · amount: 20800000 · debtor: Teal Cedar Products Ltd. (lessee under CDN Master Lease Agreement); Teal Jones Lumber Services Inc. (lessee under US Master Lease Agreement) · creditor: Bank of America (BAL Global Finance Canada Corporation, as lessor under CDN Master Lease Agreement; Bank of America Leasing & Capital, LLC, as lessor under US Master Lease Agreement) · currency: CAD · security: Equipment leases (16 leases in total) under Master Lease Agreements dated July 16, 2019