KMC Mining Corporation, CCAA

KMC Mining Corporation, an Alberta-based mining company, had its NOI proceedings continued under the CCAA on January 10.

The company was founded in 1949 and has since expanded to include railroads, dams, earthworks and mining operations across western Canada.

KMC lists over $220 million in liabilities, including over $104 million to a syndicate of lenders led by ATB Financial, $49.3 million to the Klemke Foundation and $52.6 million to its equipment lenders.

Its financial issues were caused by several factors, most significantly the sudden and unexpected cancellation of its mining services by its biggest customer, Suncor Energy.

According to the company, the intention was always to file for CCAA protection and the NOI proceedings were a temporary measure taken given court availability in December 2024. The purpose of the CCAA proceedings is to conduct a SISP with Ernst & Young Orenda Corporate Finance acting as sales agent and certain members of the syndicate providing a DIP loan.

FTI is the monitor.

Counsel is Duncan Craig for KMC; MLT Aikins for the monitor; Ogilvie for The Klemke Foundation; Gowling WLG for Wells Fargo; Norton Rose Fulbright for the syndicate; and Blakes for Suncor Energy.