Korite International Limited Partnership (“Korite LP”) and Korite International GP Inc., Calgary, Alberta-based companies that together are one of the world's largest commercial producers of ammolite, an opal-like organic gemstone, were placed in receivership on September 5 on application by CIBC, owed approximately CAD$4.8 million and US$3.8 million.

CIBC has been the senior secured lender to the “Korite” business since 2015 through Korite LP’s predecessor entity, Korite Minerals Ltd.

The business was negatively impacted by the COVID-19 pandemic as a substantial portion of its revenue was from tourist sales on cruise ships sailing the Vancouver-to-Alaska route, which cruises were banned by the Government of Canada.

To address their financial difficulties, Korite Minerals Ltd. completed a strategic sale of its assets and business to Korite LP through a CCAA proceeding in 2020 and a new credit agreement was executed between CIBC and Korite LP.

In the years following, Korite LP attempted to restructure its operations. However, these restructuring efforts were largely unsuccessful and its general financial distress persisted.

Since 2023, the company, with the assistance of sale broker Tailwind, has marketed the business for sale and an agreement has now been reached to sell the business to Buffalo Rock Mining Co. Ltd. through a receivership proceeding.

KSV is the receiver.

Counsel is BLG for CIBC, Fasken for the receiver, and Stikeman Elliot for Korite LP.