North: ‘All bets are off’ as Dominion Diamond Mines faces severe cash crunch – by Walter Strong (CBC News North – April 22, 2020)

https://www.cbc.ca/news/canada/north/

Dominion Diamond Mines has been granted a reprieve after filing for insolvency protection, the company announced Wednesday in a press release.

According to the release, the company and some of its affiliates “have filed for insolvency protection under the Companies’ Creditors Arrangement Act (CCAA)” and has received an order from the Alberta Court of Queen’s Bench granting protection to the company under the act.

“Dominion intends to use the CCAA process to engage in discussions with its lenders, creditors, equity owner and other stakeholders and to solicit and evaluate strategic alternatives to restructure the company financially and operationally, and position it for long-term success when global economic and industry conditions improve,” the press release states.

Dominion Diamond is the controlling owner of the Ekati Diamond mine, and is a 40 per cent partner with Rio Tinto PLC in the Diavik Diamond mine — both in the Northwest Territories, approximately 300 kilometres northeast of Yellowknife.

Operations at the Ekati mine have been suspended since March 19 in light of the COVID-19 pandemic, while production at Diavik continues. Dominion Diamond owes its creditors $550 million. That bill is due in 2022. Credit agencies were already skeptical that it would actually pay this off.

For the rest of this article: https://www.cbc.ca/news/canada/north/dominion-diamond-files-for-insolvency-protection-1.5541929

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