_ Zaul Zap bailed out TERRACE — Creditors of a logging company have approved a plan dealing with its debt of nearly $4 million, -Zaul Zap Industries, owned by — the Gitwinksiklkw band in the Nass Valley, has a forest licence of 50,000 cubic metres a year. ~The majority of its debt is being transformed in a complicated _ Maneuver into a new company called Sim Gan Forestry Corpora- tion that’s 51 per cent owned by the Gitwinksillkw band, _ Its being described ‘by ob- servers close.to the deal as an alternative lo bankruptcy, “Formed in the carly 1980s, Zaul Zap received its forest licence in 1987 but ran into trouble when logging cosis_—s outstripped _ Tevenue. A-key part of the deal involves a Vancouver-based and Chincse- owned . iuvestnent . company called Fountainhead Enterprises Corporation. “Zaul ‘Zap owes it nearly $2.2 million, of which. $1 million is secured agaiust the company’s forest licence. “Fountainhead is giving up its claims against Zaul Zap in return for a minority’ position in Sim Gan. Also holding a minority posi- tion in Sim Gan is International . Forest Products (Interpac} of ‘Vancouver which invested in the lew company and will manage logging and marketing opera- tious, >The. Gitwinksihlkw band ‘is owed neatly $600,000. by. Zaul Zap and is surrendering its claim in retum for majority ownership of Sim Gan, ; Yet there could still be approxi- mately $1.1 million in unpaid un- secured creditor claims, said a _ Peat, Marwick Thome accounting firm partner involved in the deal, Bob Rusko estimated that those remaining, unsecured creditors could receive 11 cents an the dol- | lar depending upon a final scttle- ment of claims and expenses... ‘He altributed the Zaul Zap's Province bri ridge bill TERRACE — It looks as if the provincial goverment is going to ~ pay the majority of the cost of building a bridge over the Nass River to the tiny village of | Gitwinksillkw..' And that ends a plan hatched in the 1980s to have the federal government pay half the cost. - The original bridge plan was ticd to the granting of a forest licence to the now-failed Zaul Zap Industries logging company owned “by the Gitwinksihikw ‘(Canyon City) band. In return for the licence, Zaul Zap was to build the bridge giving it access to wood and to replace an aging footbridge now. — used by Gitwinksililkw residents, The province and Zaul Zap each said they would pay one- quarter of the costs if the federal government remaining half. But the federal government never did commit itself, ullimate- ly placing Zaul Zap vin a precarious financial posilion be- cause the majority of the wood under licence was across the river. The provincial highways minis- try has started its own design for a vehicle bridge and hopes to have it completed next spring, says regional highways minisiry ~ manager Jon Buckle. “There’s —_ several people who have nothing but a foolbridge,’’ said Buckle of the reasoning bebind the decision. “There are lots of olhcr cases where: the ministry provides ac- cess." He said the ministry had al-. ready discarded “a Zaul Zap bridge study financed by the fed- eral government. "tt really wasn’t suilable. It was a single lane logging bridge ‘and it hadn’t been done: with a lot. of testiig of abutment condi- -tions,’'sald Buckle, © A drill crew this summer tested “rock outcroppings .about .800m ‘upstream froim the existing foot- bridge. — Depending on whether’. the. bridge is one-lane or two, the final price, with road approaches, could top $3 million, said Buckle. An approach road of nearly 2km will be needed from the ex- isting road in the Nass aid a new road on the other side connecting to Gitwinksihikw, = picked up the .. Ea Dodge Harry Nyce demise to costs revenue, Aud Rusko said company man- agement was poor. “That’s not unusual — 95 per cent of companies in this country fail because of poor manage- ment,’’ said Rusko. The B.C. supreme court must still approve the debt restructur- ing plan. Gitwinksihlkw chief councillor Harry Nyce said constantly changing management at Zaul exceeding - Zap put it ata disadvantage. “We'd be making operating costs, then slip a bit, Make opera- ting costs again and slip a little bit,’’ said Nyce. ; “We pretty well have that in. EVERY DEALER HAS. CLEARLY MARKED THEIR hand now with Interpac,’’ he added. “The bottom line is to keep the company holdings in the north- wesl,”’ said Nyce of the new ar- rangement. He said lack of a bridge added at least two hours to the hauling . distance needed ta transport logs. Zaul Zap received its 50,000 cubic metre a year licence in the last decade after first asking for one of 120,000- cubie metres, Nyce said. That further placed Zaul Zap at an economic disadvantage: but it did contract logging for olher companies to help cash Bow, he said. Zaul Zap was able to make con-, tributions to Gitwinksillkw which resulted in community hall and a church, said Nyce. “We hope that will be con- tinued under Sim Gan,” he said, Nyce | acknowledged — that Gitwinksihlkw’s investment - in Zaul Zap did put a strain‘ on the band’s finances. Sim Gan is a Nisga’a ward which roughly translates as ‘good wood’ or ‘holy wood’. Kalum Forest District manager Brian. Downie said approval of the forests minister is not needed for the licence transfer because majority ownership of the new company is the same as it was with Zaul Zap. | aL: VEHICLES AT hundred an a z : ale ittaie *Offera mutually exclusive and lor monthly for 48 months. C.0.8, $2,316.32 and 12.38% per anume {n atlest trom July 1, 1 Special Gold Key Lease Program also available on : Licente, registration, {elght, Insurance, taxes and othar feas extra. See » Dealot Terrace Standard, Wednesday, September 2, 1992 — Page AJ3 LUCKY DOLLAR BINGO SEPTEMBER 1992 > A L A CE SEPTEMBER 1992 Ge 3 Terrace 4 Big 5 Ringette 747 Brothers 9 Kermode | Terrace | Air Cadats & Sisters Friendship Biueback ° Terrace Negra Torrace Saccer Society | Swim Club Anli Poverty | Tribal Gouncit | Figure Skating 6 7 Terrace i, 9 10 Order al 11 Canadian 1 Little scat’ yp| Minor | Kermode | Terrace Purple ‘eee oalition tor the |: : sf ~ Advancement Hockey Friendship. Peaks, trace | - -Nisga'a ° fosinen of Education LaHOUR DAY Society Gymnastics , Anti Poverty Tribal Counc. | — Rescue 13 14 15 16 TL Veneer s Canadian “| "J Q) Minor no | L Parents, Terrace Kermode | Terrace acs iseee pe Coation forthe} Minor | Friendship | Blueback ~—Tenaco 1 ~wsgaa” 7 L_—Sirattes of Education Hockey Society | Swim Club Anti Poverty | Tribal Council. | Figure Skating 20 21 2? . 23 _ 24 feirace & 29 “Canadian 2. Little Parents Terrace | Kermode Terrace | sro | Aegon b 26 Theatre | Coalition for the Minor Friendshi Peaks : : Soe Kinsmen. ; Advancement USNIp CaKS Terrace. |. Nisga’a ol Education | Hockey Society | Gymnastics: Am Poverty). Tribal Counel coats pg | Terrace | Kermode ‘tere ton (or A . . onium Fs Advancement Minor Friendship | - Vt se ol Education | Baseball | Society = " Sat. Afternoon Games Doors: 44: 30 ¢ a.m. “Games 12: 45 Evening Games Doors 4: 30 pm. Games 6:15 Thurs., Fri., Sat. Late Night Games| Doors 9: 30 p.m. Games 10:00 p.m. T.V. MONITORS. SMOKE REMOVAL AISLE CONCESSION : Ge TAGES CHRYSLER AT YOUR LOCAL CHRYSLER DEALERS. rsonal use only, Financing for a maximum of 4B months subject ta approval by Chrysiar Credit Canada Ltd, Example: $ 10,000 financed al 3.9% APA. équals $226, a4 6.32, Tolal amount ta be repaid: $10,616.32. With 3.9% A.P.R. and $1,500 rebate not taken, stalutorily required recalculated C.O.6, expressed In dollars and percarl Is: 2 until terminated by poate ‘Canada Lid. Retail lease vehicles eligite lor Factory Rabate only. Applias te axlaling Dealer Inventory ont . Coupe fic modala. Thase oflers cancel, replace and He rs — wilh other offers. detalles :