Labrador Iron Mines May File for Bankruptcy

Mining Weekly reported that Labrador Iron Mines Holdings Ltd. (TSX:LIM) will be forced to file for protection under the Companies’ Creditors Arrangement Act or the Bankruptcy and Insolvency Act if it fails to secure additional financing and complete restructuring.

As quoted in the market news:

At December 31, LIM had a working capital deficit of $62.2-million compared with a working capital deficit of $8.7-million as at March 31. Current liabilities, consisting of accounts payable and accrued liabilities, finance lease obligations, rehabilitation provisions, a rail construction advance and deferred revenue totalled $65.7-million.

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