Dominion Owes Creditors $820M

RAPAPORT… Dominion Diamond Mines owes a combined CAD 1.2 billion ($820 million) to banks and other creditors, according to a court document it filed as part of its insolvency petition.

While a large portion is due to businesses in the Northwest Territories, where Dominion operates its Ekati mine, the listing also shows a CAD 593,017 ($422,429) debt owed to the Diamond Producers Association (DPA) and CAD 1,254 ($893) unpaid to De Beers. The largest amounts owed include secured debts of $556.3 million to Wilmington Trust Bank and $150 million to Credit Suisse Bank.

The listing fails to include regular monthly payments Dominion makes to Diavik Diamond Mines (DDMI), a subsidiary of Rio Tinto, its partner in the Diavik mine, according to an affidavit made by DDMI in response to the insolvency filing. Dominion already defaulted on a CAD 16 million payment ($11.5 million), the document showed.

Dominion first filed for insolvency protection April 23, and asked for an extension a week later that would give it until June 1 to either pay debts, restructure finances, or find an investor. The extension has not been approved, as the court is considering DDMI’s request to receive regular payments from Dominion for the upkeep of the Diavik deposit.


Image: The Misery pit at the Ekati mine. (Dominion Diamond Mines)