Former Pallan-owned properties are up for sale as creditors attempt to limit losses and now the company’s patriarch is also facing bankruptcy.
“It’s been very stressful. I just want to move on,” Tom Pallan said Thursday during a phone interview.
Late last year, three Pallan Group companies went bankrupt and on Jan. 31, Tom Pallan had to declare bankruptcy.
However, the Campbell River-based company continues to restructure and operate under president Derik Pallan (Tom’s son).
“We are moving forward,” he told the Mirror recently. “The company got into trouble…we got big too quick…and the bank refused our offer.”
Tom Pallan echoed his son’s assessment, saying he believed they had a good offer to restructure finances and repay creditors, but the offer was rejected. The Pallans are involved in logging, lumber sales, real estate and other ventures.
One of the holdings, Howe Sound Forest Products owed creditors $15.7 million, most of which was unsecured.
According to the creditor list, CIBC Special Loans was owed $12.4 million in an unsecured loan and several Campbell River-based companies were owed thousands which will likely not be recovered.
“There’s no more money,” said Derik Pallan. Some of other unsecured creditors topping the list include: Canadian Air Crane, $563,348; Island Timberlands, $493,733; CISSAA Forestry LLP First Nations (Tseshaht First Nation of Port Alberni), $306,588; and VIH Helicopters, $275,411. Derik Pallan expressed regret that creditors and local businesses have lost money, and said his focus is to move forward and to continue with their ventures in Campbell River.
He also said the bankruptcy proceedings have been enormously difficult for his 81-year-old father who has given a lot back to Campbell River.
The family established a bursary at North Island College in memory of their late son and they’ve given back in many other ways.
“My dad loves giving back to the community…he’s very upset,” said Derik Pallan.