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Tuesday, January 27, 2015

U.S. miner Cliffs seeks creditor protection in Canada, (NYSE: CLF), (NYSE: TGT)

Iron ore and coal miner Cliffs Natural Resources Inc has become the third major U.S. company in the past six months to seek creditor protection for its Canadian arm to try to isolate losses and protect shareholders.The miner said Bloom Lake General Partner Ltd and some of its affiliates, including Cliffs Quebec Iron Mining, commenced restructuring proceedings in Montreal on Tuesday.The move mirrors the route taken by U.S. Steel, which sought creditor protection for its money-losing Canadian operations in September, and by U.S. discount retailer Target Corp, which announced earlier this month it was abandoning its Canadian expansion.The long-anticipated move by Cliffs will help insulate the publicly listed U.S. parent company from the vast majority of the $650 million to $700 million in closure costs tied to the company's mothballed assets in Canada.

Cliffs Natural Resources Inc. is an international mining and natural resources company. Shares of CLF fell by 6.16% or $-0.445/share to $6.78. In the past year, the shares have traded as low as $5.63 and as high as $23.53. On average, 9838920 shares of CLF exchange hands on a given day and today's volume is recorded at 12599662.

Target Corporation (Target) is engaged in providing everyday essentials and fashionable, and differentiated merchandise at discounted prices. Shares of TGT fell by 0.54% or $-0.41/share to $74.84. In the past year, the shares have traded as low as $54.66 and as high as $77.75. On average, 5434340 shares of TGT exchange hands on a given day and today's volume is recorded at 2615724.



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