Cliffs Natural Resources Starts Restructuring Proceedings

Cliffs Natural Resources Inc. (NYSE:CLF) announced that Bloom Lake General Partner Ltd. and certain of its affiliates have started restructuring proceedings in Montreal, Quebec under the Companies’ Creditors Arrangement Act.

As quoted in the press release:

The Bloom Lake Group had recently suspended operations and for several months has been exploring options to sell certain of its Canadian assets, among other initiatives.

The decision to seek protection under the CCAA was based on a thorough legal and financial analysis of the options available to the Bloom Lake Group. The Bloom Lake Group is no longer generating any revenues and is not able to meet its obligations as they come due. The Initial CCAA Order will address the Bloom Lake Group’s immediate liquidity issues and permit the Bloom Lake Group to preserve and protect its assets for the benefit of all stakeholders while restructuring and sale options are explored.

Lourenco Goncalves, CEO and chairman of the board at Cliffs, stated:

For several months, we have been seeking equity investors and exploring sale options for Bloom Lake including working collaboratively with Investissement Québec. We support the decision by the directors of the Bloom Lake Group to conduct a restructuring process under the supervision of the Court.

Click here for the full Cliffs Natural Resources Inc. (NYSE:CLF) press release