The star that burns twice as bright burns half as long: Petra Diamonds completes its falls from grace, and looks unlikely to rise any time soon

(proactiveinvestors.co.uk) - It was as inevitable as it is painful: shareholders in Petra Diamonds Ltd (LON:PDL) are facing a near total wipeout as bondholders take over the running and ownership of the company, following a disastrous few years at what was once the world’s fourth largest diamond company. For so long, it looked so good. The company built a business model out of picking up assets that were past their prime, yes, but which still had plenty to give. Thus, some of the world’s most famous mines passed into its hands – the Cullinan and Finsch mines in particular – and continued to produce some fabulous stones. Finsch remains the second largest diamond producing mine in South Africa, which is saying something in the world’s most diamond-rich country. But beneath all this glitter there were also cracks, or fissures.