Dominion Diamond granted creditor protection, plans restructuring

Dominion Diamond granted creditor protection, plans restructuring
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CALGARY — Dominion Diamond Mines ULC has been granted creditor protection under the  Companies’ Creditors Arrangement Act.

The company says the CCAA filing was brought on by the impact of the COVID-19 pandemic, which closed the diamond markets.

Dominion operates the Ekati diamond mine, in which it owns a controlling interest, and also owns a 40 per cent stake in the Diavik diamond mine.

Dominion says it plans to hold talks with its lenders, creditors, equity owner and other stakeholders and evaluate its strategic alternatives to restructure the company.

The filing but offers the company time to restructure and negotiate with its creditors.

The company shut down the Ekati mine last month in an effort to protect its workers and local communities from the spread of COVID-19.

Under the terms of the initial order, an Alberta Court of Queen’s Bench appointed FTI as the monitor.

This report by The Canadian Press was first published April 23, 2020.



The Canadian Press

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