Stornoway Diamonds Agrees to Sell Assets to Secured Creditors

Stornoway Diamond Corporation applied for protection under the Companies’ Creditors Arrangement Act and arranged a working capital facility agreement for an initial amount of c$20 million.

• The company and its units signed a letter of intent with certain secured creditors under its bridge financing agreement
• The participating secured creditors intend to acquire substantially all of Stornoway Diamond’s assets and properties
• The creditors will also assume the debts and liabilities owed to the secured creditors

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