Three companies of the Pallan Group are going bankrupt, but president Derik Pallan insists the family-owned business is moving forward and will continue to do business.
“We’ve been here for 50 years and we’ll be here for another 50 – we’re all staying,” he told the Mirror on Monday.
It was the same refrain from Pallan in October when the Campbell River-based company was going through a restructuring process and the accounting firm KPMG was appointed receiver of the limited companies: Pallan Timber Products, Pallan Holdings and Howe Sound Forest Products.
But Pallan said negotiations with the bank broke down and those three companies are now going bankrupt.
In a legal notice in Friday’s Mirror, KPMG reported the three companies filed for bankruptcy on Nov. 22, and a first meeting of creditors will take place Dec. 11, 1 p.m., at the Coast Discovery Inn.
In spite of the setback, Pallan said the company is moving forward on its other business interests which include logging, real estate, construction and coal mining.
The company still intends to build a 20-unit apartment complex, with a liquor store, by the Big Rock Motel which it also owns.
“Our other companies are doing business more than ever,” said Pallan.
Middle Point Project
Pallan-owned Pacific Rim Developments has partnered with the Cape Mudge Indian Band to develop the Middle Point port and forestry-related businesses, located just north of the city.
A formal announcement on the project was expected last winter, but there have been delays, said Cape Mudge Band Chief Ralph Dick.
However, on Tuesday, he said the port breakwater will be built using rock coming from the new BC Hydro tunnel that’s part of the John Hart Generating Station reconstruction project.
Work is expected to begin next spring to blast out a two-kilometre tunnel that will run downhill – approximately 100 metres underground – from John Hart Lake to the new generating station which will also be built underground.
The project will generate tonnes of rock and Chief Dick said an agreement has been reached with BC Hydro to deliver 58.2 per cent of the rock to Middle Point.
“They will deliver it and no money is changing hands,” said Dick, who described it as a win-win deal.
The remainder of the rock, according to the chief, is going to the Campbell River Indian Band.