Cliffs Natural Resources Inc. said that it was seeking court protection from creditors of its Wabush iron ore mine and related assets in Eastern Canada, four months after it sought similar protection for its other Canadian iron ore assets, Reuters reported yesterday. The U.S.-based iron ore and coal miner said that it had concluded that a "more comprehensive restructuring and sale process" would result if it was able to include the Wabush group under the same creditor protection it obtained in January for its larger Bloom Lake iron ore assets in Quebec Superior Court. It would also allow Cliffs a more "streamlined exit" from Eastern Canada, according to a filing with the U.S. Securities and Exchange Commission. In January, Cliffs became the third major U.S. company in six months to seek creditor protection for its Canadian arm to try to isolate losses and protect shareholders.
