Teal Jones: what is left is British Columbia

A liquidation that runs long enough stops being an event and becomes an administration. This one has been running for twenty-six months.

Where the case stood

Fifteen entities obtained an initial order in the Supreme Court of British Columbia on April 25, 2024 — the Canadian companies around Teal-Jones Group and Teal Cedar Products Ltd., and a string of American ones: Teal Jones Holdings USA Inc., Potomac Supply LLC, Pine Products LLC, Greentree Lumber Company LLC, Teal Jones Louisiana Holdings LLC and others. PricewaterhouseCoopers Inc. was appointed monitor, per Twenty-Seventh Report of the Monitor, June 23, 2026, para. 1.

The comeback hearing on May 3, 2024 set the financial architecture that still governs. The court approved an interim financing facility from Wells Fargo Capital Finance Corporation Canada and Export Development Canada — the Interim Lenders — together with the Support Agreement behind it, and granted a super-priority charge over everything in the amount of $116,509,000 plus interest, fees and costs. It raised the administration charge from $350,000 to $650,000, approved two early sales, and authorised the sale of non-material real property up to $2 million per transaction and $10 million in aggregate, per Twenty-Seventh Report, June 23, 2026, para. 4.

A week later the court approved the SISP, ordered distributions to RBC and BDC out of one sale and to the Wells Fargo syndicate out of the other, and issued a second amended and restated initial order sorting out priority: Bank of America's equipment liens recognised as subordinate only to the administration charge, the Interim Lenders' charge given priority on overlapping equipment, and a first-ranking charge for OCP Lumber LLP on a performance payment, per Twenty-Seventh Report, June 23, 2026, paras. 6–7.

Then it got long. On November 5, 2024 the court granted a substitution order replacing PwC with Ernst & Young Inc., discharging and releasing the former monitor. On May 1, 2025 it approved a claims process. And on January 27, 2026, on the Interim Lenders' application, it expanded the monitor's powers — after which the record changes voice: from March 2026 the applications are brought by "the Monitor on behalf of the Group", per Twenty-Seventh Report, June 23, 2026, paras. 17–18, 36, 66–67, 73.

Sold

By this report the monitor has completed or overseen sales of the American footprint and the outlying Canadian assets both. Parcel 1, the Louisiana Mill. Parcels 2 and 5, the Antlers Mill in Oklahoma and the Greentree Mill in Mississippi. Parcels 3 and 4, the Virginia mills. Parcel 9, timber tenure forest licence A19201. Parcel 11, the Salmon Arm Mill. Various parcels of non-SISP real estate in British Columbia, per Twenty-Seventh Report, June 23, 2026, para. 88.

Two of those sales are worth pausing on for what they cost in time.

The Parcel 9 sale — the timber tenure — drew opposition from two affected First Nations. The application was adjourned by agreement from March 25 to April 4, 2025, when the approval and vesting order and the distribution order were granted, per Twenty-Seventh Report, June 23, 2026, paras. 28–30.

And then Mercury, a bidder that did not close. Mercury applied to have its deposit returned, or alternatively to have the dispute sent to a Delaware court — but filed no expert evidence on Delaware law. The Interim Lenders moved for security for costs of $250,000 and for an order dismissing the application if it were not posted. Mercury opposed "despite its admission that it was a shell company with no assets or ability to pay any costs or to post security for costs". On November 18, 2025 Justice Milman ordered $75,000 by the end of November 28, failing which the application would be treated as dismissed after a hearing. Mercury said it could not pay; the court office confirmed nothing had been deposited; and on December 3, 2025 the monitor disbursed the deposit to the lenders, per Twenty-Seventh Report, June 23, 2026, paras. 54–61.

One dispute is still open on a closed sale. The monitor continues to work with Sumitomo on post-closing adjustments to the Louisiana Mill transaction, and separately sought payment of a US$1.1 million cash burn holdback retained at that closing. On March 9, 2026 Justice Weatherill declined to decide it, giving directions that the cash burn for the holdback period was intended only to address operating cash losses arising from the operating inefficiencies being addressed by Comact — and adjourning because that analysis had not been put before him, with an express suggestion that the parties resolve it themselves, per Twenty-Seventh Report, June 23, 2026, paras. 68–72, 89.

Unsold

What is left is the company Teal-Jones was before it was anything else. The monitor lists it: Surrey real estate; Surrey sawmill equipment; the shake and shingle mill; the Sumas kiln and planing operation; Sumas real estate; TFL46; inventory; accounts receivable; the remaining non-SISP real estate; and duty receivables and tax losses, per Twenty-Seventh Report, June 23, 2026, para. 90.

The monitor and the group are marketing all of it and say discussions with multiple parties are advancing — but the sentence that follows is the one to note: the monitor "is not in a position to report on any of those negotiations", per Twenty-Seventh Report, June 23, 2026, para. 91.

The numbers keeping it alive

For the five weeks to June 12, 2026 the group had net cash outflows of about $0.8 million and ended with DIP borrowing of roughly $53.8 million, within the facility's limit. Sales were in line with forecast; receipts of about $17.2 million came in under forecast on the timing of the Louisiana Mill proceeds and lumber collections; operating disbursements of about $15.3 million came in under forecast on lower raw material purchases, per Twenty-Seventh Report, June 23, 2026, para. 93.