Tahera Diamond in creditor protection

Tahera Diamond Corp., which opened the first diamond mine in Nunavut, on Wednesday went into court-ordered protection from its creditors citing insufficient cash to fund its operations.

Tahera said it sought protection under the Companies' Creditors Arrangement Act, "as its current cash flows and cash on hand would not allow it to meet its current obligations and its obligations with respect to the 2008 winter road resupply.

On the Toronto Stock Exchange, shares of Toronto-based Tahera finished down 6.5 cents at 7.5 cents. The stock's one-year high was $1.38.

The bankruptcy protection filing was approved by an Ontario Superior Court judge.

PricewaterhouseCoopers was appointed by the court to monitor the company's operations and assist in developing a restructuring plan.

Tahera said its board of directors determined that the creditor protection filing was in the best interest of its stakeholders due to low interest in Tahera's recent equity offering and the absence of any viable strategic alternatives.

The company's Jericho diamond mine is about 360 kilometres southwest of Cambridge Bay in western Nunavut. Nunavut's only diamond mine is Tahera's main asset.