Canadian diamond miner Arctic files for insolvency protection
ASX-listed Burgundy Diamond Mines has advised that its subsidiary, Arctic Canadian Diamond Company, has filed for insolvency protection under the Companies’ Creditors Arrangement Act, in British Columbia.
Arctic was granted this protection by the Supreme Court of British Columbia, with the company now planning to engage lenders, creditors and other stakeholders on strategic alternatives to restructure Arctic financially and operationally.
The company has been navigating difficult geopolitical, economic and industry conditions but continues to own and operate the Ekati diamond mine, in Canada.
Arctic cites its most pressing challenges as the ongoing adverse impact of US tariffs on the natural diamond industry, sustained challenging demand conditions in the natural rough diamond industry and increasing costs as a result of fuel price movements owing to the conflict in the Middle East.
The company believes filing for insolvency protection is the most prudent course of action.
Arctic and Burgundy have been working consistently to cut costs and recast business plans to focus on producing the highest quality goods within its asset base, however, it is still in the group’s best interest that Arctic proceed with insolvency protection.
FTI Consulting will serve as the court-appointed monitor of Arctic to oversee its proceedings and report to the court.
