February 21, 2022
Canada Fluorspar (NL) Inc. and Canada Fluorspar Inc. (collectively, “CFI”), which operated a fluorspar mine in St. Lawrence, Newfoundland and Labrador, were placed into interim receivership on February 21, on application by PwC as the receiver of Bridging Finance Inc. and certain related entities (collectively, “Bridging”). In the past several months, financial and logistical problems have hampered CFI’s operations, and it continues to generate negative cash flow. CFI’s current secured facilities include a $55 million CAD term facility with Bridging, facilities with HSBC that include a revolving term and overdraft account totalling $22 million USD, as well as a letter of credit and credit card facility totalling $1.6 million CAD. In addition, the Province of Newfoundland and Labrador as represented by the Minister of Tourism, Culture, Industry and Innovation provided a loan in the principal amount of $17 million CAD. CFI’s shareholder, Golden Gate Capital, has invested approximately $238 million USD in equity financing since its acquisition of CFI in 2014. Grant Thornton was appointed interim receiver to preserve CFI’s operations and maintain its property while CFI’s stakeholders pursue options to restructure CFI and avoid bankruptcy. Counsel is Stewart McKelvey for PwC as the receiver of Bridging, Cox & Palmer for CFI, McInnes Cooper for Grant Thornton as interim receiver, Dentons for HSBC Bank Canada and Goodmans for Golden Gate Capital.
By Dina Milivojevic