Stornoway Diamonds (Canada) inc., a Longueuil, Quebéc-based mining company which operates the Renard diamond mine located in north-central Québec, and its parent company 1172420 Canada Inc., obtained CCAA protection on October 27, listing $309 million in liabilities, including $249 million in secured debt. The Renard Mine is the first diamond mine in Québec, and one of five in Canada, combining open-pit and underground mine operations. It employed approximately 530 employees as of the time of the CCAA filing. The Renard Mine started its operations in 2016-2017 following investment of approximately $1 billion. The company previously underwent a CCAA restructuring in 2019, which was followed by successful operations until the fall of 2023, when the company’s profitability suffered mainly due to sudden negative market variations in the price of rough diamonds, India’s recent freeze on the import of rough diamonds and lost production due to forest fires. The contemplated restructuring involves a sale process for the business, the implementation of a care and maintenance program and the monetization of current inventory. Deloitte is the monitor. FTI is financial advisor to the Streamers. Counsel is Norton Rose Fulbright for the company, Osler for the monitor, Gowlings for The Cree Council, McCarthy Tétrault for IQ, Fasken for Caisse de dépôt et de placement du Québec and Stikeman Elliott for the Streamers.

By: Dina Milivojevic