LONGUEUIL, Québec, Oct. 07, 2019 (GLOBE NEWSWIRE) -- Stornoway Diamond Corporation (the “Corporation” or “Stornoway”) announced today that the Corporation and its subsidiaries, Stornoway Diamonds (Canada) Inc., Ashton Mining of Canada Inc. and FCDC Sales and Marketing Inc. (collectively, the “SWY Parties”) have obtained an approval and vesting order (the “Approval and Vesting Order”) from the Superior Court of Quebec (Commercial Division) issued in connection with the proceedings under the Companies’ Creditors Arrangement Act (“CCAA”).

The Approval and Vesting Order approved the transactions contemplated in the share purchase agreement (“Purchase Agreement”) entered into as of October 6, 2019 among the SWY Parties, on the one hand, and certain secured creditors under the bridge financing agreement entered into by the SWY Parties on June 10, 2019 (collectively, the “Participating Secured Creditors”), on the other hand. Under the terms of the Purchase Agreement, the Participating Secured Creditors agreed to acquire, through an entity to be formed for this purpose, substantially all of the assets and properties of the SWY Parties, and to assume the debts and liabilities owing to the Secured Creditors as well as the ongoing obligations relating to the operation of the Renard Mine, subject to certain limited exceptions (the “Transactions”). Closing of the Transactions is expected to occur on or about November 1, 2019 and remains subject to the satisfaction of certain conditions contemplated in the Purchase Agreement.

Upon conclusion of the Transactions, Stornoway will no longer have any operating assets or active business.

Deloitte Restructuring Inc. is the court-appointed monitor. Information about the CCAA proceedings, including the monitor's reports, are available on the monitor's website at https://www.insolvencies.deloitte.ca/Stornoway.

About Stornoway Diamond Corporation

Stornoway is a Canadian diamond exploration and production company headquartered in Montreal and owns a 100% interest in the Renard Mine, Québec’s first diamond mine.

Source: Stornoway Diamond Corporation