Grant Thornton Ltd has been appointed to act as interim receiver as restructuring efforts continue to save the fluorspar mining operation in St. Lawrence.

Details on the interim receivership filing by PricewaterhouseCoopers on behalf of Canada Fluorspar have been released publicly.

PricewaterhouseCoopers says an interim receiver was necessary to preserve Canada Fluorspar’s operations and maintain their property while restricting options are pursued to avoid bankruptcy.

Canada Fluorspar employs 260 people, most of whom live on the Burin Peninsula.

The business is financed by significant loans from secured creditors, and ongoing operations are financed by equity investments by its sole shareholder – Golden Gate Capital.

Operations were hampered in recent months by financial and logistical problems which has resulting in “negative cash flow.”

The provincial government provided the company with a $17 million dollar repayable loan which is due at the end of this year.

The company also has a loan with HSBC of $20 million dollars US as well as additional financing options.

PricewaterhouseCoopers is the manager of Bridging Finance Inc which is the largest debtholder for CFI.

The Supreme Court of Newfoundland and Labrador appointed Grant Thornton Ltd to act as interim receiver.

According to the filing, the company is ceasing operations and terminating all staff unless a restructuring plan can be developed.

The full judgment details can be found below.

202201G0709 – PricewaterhouseCoopers Inc. v. Canada Fluorspar (NL) Inc. – Feb. 22, 2022 (FINAL)