Labrador Iron Mines Limited (“LIM”) develops and mines direct shipping iron ore projects in the central part of the Labrador Trough iron ore region, between the Province of Newfoundland and Labrador and the Province of Quebec. The Labrador Trough is one of the major iron producing regions in the world and has a history of mining dating to the early 1950s.
LIM engaged our team to address its financial challenges and to explore strategic options. Following our review of LIM’s legacy costs, underlying contracts and liquidity, we assisted LIM to prepare for a filing in April, 2015 under the Companies’ Creditors Arrangement Act. As CCAA Monitor, we worked with LIM’s management to develop a strategy that would position it to refinance and resume operations when iron ore prices recover, which included working closely with management to file a plan of arrangement under the CCAA.
In December, 2016, LIM’s CCAA Plan was approved by its creditors and sanctioned by the Court.