KMC Mining Corporation, an Alberta-based mining company, filed an NOI on December 5 listing approximately $221.9 million in liabilities, including approximately $103.8 million to ATB Financial as administrative agent for a syndicate of lenders, $49.3 million to the Klemke Foundation and $36.9 million to Komatsu Financial. KMC’s primary operations include mine development, contract mining and land reclamation.

As of November 25, KMC employed 61 full-time employees (17 at its head office in Edmonton and 42 in Fort McMurray or a field office location maintained there).

Due to the sudden and unexpected cancellation of its mining services by its most significant customer, Suncor Energy, and with no prospect of replacement work in the immediate future, KMC does not have sufficient working capital to continue to pay its debts while maintaining adequate cash flows to continue operations over an extended period of time.

The purpose of the NOI proceedings is to stabilize the business; monetize assets in an effort to retire the company’s secured debt and address other obligations; capture any equity in KMC in order to possibly fund a plan of arrangement to pay distributions to unsecured creditors; and address any possible recourse against Suncor arising from the termination.

FTI is the proposal trustee.

Counsel is Duncan Craig for KMC.