The company’s survival strategy involves deferring critical financial obligations to September 30, 2026, including decommissioning fund payments to De Beers Canada and principal repayments on its term loan and working capital facility. Additionally, holders of the company’s senior secured lien notes have agreed to waive and defer a June 15 interest payment until December 15, 2026.
In section Releases
Mountain Province Diamonds Secures Liquidity Through Asset Sale
Facing mounting pressure from a weak rough diamond market and geopolitical instability, Toronto-based Mountain Province Diamonds has finalized a series of debt extensions and asset sales. The company moved to offload up to US$5 million in receivables to related party Dermot Desmond to stabilize its immediate cash flow.
These maneuvers, approved by a special committee of independent directors, are designed to grant the company operational breathing room while it pursues a broader debt restructuring. CEO Jonathan Comerford cited sustained pressure from U.S. tariff measures and Middle Eastern conflicts as primary drivers of the current liquidity crunch. As part of its recovery plan, Mountain Province is actively seeking government support through the Canada Enterprise Emergency Funding Corporation, characterizing the aid as a fundamental requirement for the company to continue as a going concern.
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