Investissement Québec acts as secured lender in relation to the restructuring proceedings of BlackRock

Our Montreal office is acting as counsel to Investissement Québec (IQ) in connection with the filing by BlackRock Metals Inc. and its affiliates for protection under the CCAA. BlackRock is a Canadian mining company involved in constructing a mine for producing a concentrate of iron-vanadium, and plans to use green hydrogen at its metallurgical plant at the Port of Saguenay.

On December 23, 2021, the Superior Court of Québec issued an Initial Order pursuant to the CCAA in respect of BlackRock. On January 7, 2022, the court authorized the implementation of a “stalking horse” sale and investment solicitation process (the SISP) in which IQ and OMF Fund II H Ltd. (Orion), BlackRock’s senior secured creditors, are acting as the “stalking horse” bidder. IQ and Orion will also be acting as interim lender in the context of the proceedings.

The objective of the CCAA proceedings is to identify a value-creating transaction that will allow BlackRock to emerge as a rehabilitated entity and proceed to the construction phase of its mining project, which is estimated to require financing of around US$1.1bn. The transaction provided for in the stalking horse bid submitted by IQ and Orion contemplates a credit bid of their secured debt to be implemented through a reverse vesting order. The SISP is currently underway and is being conducted by Deloitte Restructuring Inc. in its capacity as CCAA monitor of BlackRock.