Canadian Miner Begins Restructuring As Iron Ore Prices Fall

Law360, New York (April 2, 2015, 3:30 PM EDT) -- Labrador Iron Mines Holdings Ltd. on Thursday said it is entering restructuring proceedings under Canada’s Companies’ Creditors Arrangement Act, blaming the falling price of iron ore and previously high operating costs.

Toronto-based LIM said the company has had a very significant working capital deficit since December 31, and has missed some financial obligations.

“LIM needs to complete a financial restructuring in order to continue as a going concern and preserve the long-term value of its assets,” the company said in a statement.

The miner has been...
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