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by Will Purcell
The diamond and specialty minerals stocks box score on Wednesday was an 68-83-149 as the TSX Venture Exchange fell two points to 584. Polished diamond prices inched higher today but have remained flat since April, about 2 per cent below their fall and early winter average.
Creditors and equity holders of Dominion Diamond Corp. are getting testier, and so are their lawyers. Late last week, the lawyers for Dennis Washington's Dominion Diamond fired back at briefs filed by its co-venturer at the Diavik mine, Diavik Diamond Mines Inc., and at the holders of $550-million (U.S.) of bonds issued by the company in 2017, when Mr. Washington took Dominion private at just over $18 per share. The $100 (U.S.) bonds, which covered nearly half of the $1.2-billion (U.S.) buyout of Dominion's shareholders, are essentially worthless today, having last traded at just 14 (U.S.) cents late last month.
While Dominion's Calgary-based lawyers noted that "certain parties" have taken issue with the stalking horse asset purchase agreement recently made by Mr. Washington's group of companies, they gushed enthusiastically about the support Washington Group is providing with the stalking horse bid, despite that its companies "appear to have lost their $500-million (U.S.) equity investment" made in 2017. They have, in a sense, although the bondholders argue that if the stalking horse bid succeeds, Washington Group will remain the sole shareholder while they will be wiped out.
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