Washington Group of Companies Stalking Horse Bid for Dominion Diamond

Goodmans LLP is acting as counsel to Washington Group of Companies (“Washington”), in its capacity as the court-appointed stalking horse bidder for the sale of the business and assets of Dominion Diamond and the DIP lender to Dominion Diamond. 

Washington is also the equity owner of Dominion.

On April 22, 2020 Dominion Diamond Mines ULC, Dominion Diamond Delaware Company, LLC, Dominion Diamond Canada ULC, Washington Diamond Investments, LLC, Dominion Diamond Holdings, LLC and Dominion Finco Inc. (collectively “Dominion") commenced under the Companies' Creditors Arrangement Act R.S.C. 1985, c. C-36, as amended ("CCAA") in Calgary, Alberta.  FTI Consulting Canada Inc. (“FTI”) was appointed by the CCAA court as the monitor (the "Monitor") of the Applicants.

On June 19, 2020, after a highly competitive and contested process, a stalking horse bid by Washington (the “Stalking Horse Bid”) was approved by the CCAA court to serve as a the stalking horse bid in a court-approved Sales and Investment Solicitation Process that was run through the fall of 2020 (the “SISP”).  Pursuant to the SISP, Dominion, the Monitor and Dominion’s financial advisor, Evercore, will seek higher and better offers for the business. 

The CCAA court also approved a US$60 million debtor-in-possession facility offered by Washington, together with certain of Dominion’s existing first lien secured lenders (the “DIP”).  The purpose of the DIP was to fund Dominion through the SISP process.