Alberta Mining Contractor KMC Mining Files for Debt Restructuring Amid Financial Challenges
(Fort McMurray, AB – Dec. 6, 2024) – Alberta-based mining contractor KMC Mining is seeking debt restructuring after the unexpected cancellation of its mining services contract with Suncor Energy.
On December 5, KMC filed a Notice of Intention (NOI) to Make a Proposal under Canada’s Bankruptcy and Insolvency Act, with FTI Consulting appointed as the trustee for the proceedings. The company, with over 75 years in Alberta’s mining sector, cites insufficient working capital to continue paying debts while maintaining cash flow.
According to the NOI, KMC Mining lists approximately $221.9 million in liabilities, including $103.8 million owed to ATB Financial as an administrative agent for a syndicate of lenders, $49.3 million to the Klemke Foundation, and $36.9 million to Komatsu. The restructuring aims to stabilize the business, liquidate assets to address secured debt, and potentially fund a plan to pay unsecured creditors.
KMC employs over 60 full-time staff, including 42 in Fort McMurray Wood Buffalo. The company’s core operations include mine development, contract mining, and land reclamation.
Harvard Media News has reached out to KMC and FTI Consulting for comment. Further updates will be provided as new information becomes available.