Iron ore miner Cliffs Natural Resources Inc (CLF.N -0.23%) has been sued by Canada's Bank of Nova Scotia (BNS.TO 0.63%) for about $52.6 million for breaching some debt terms related to its Bloom Lake mine in Quebec.
The biggest U.S. iron ore miner said in January it was seeking creditor protection for its Canadian operations.
Cliffs' application for creditor protection in Canada "constituted a default" under the loan agreement, accelerating the company's payment obligations, Scotiabank said in a lawsuit filed in a U.S. District Court in Ohio on March 16.
In response to the bank's notices, Cliffs denied that it was obligated to repay the debt immediately, Scotiabank said in the lawsuit.
Bloom Lake was once seen by analysts as a key growth project for Cliffs, but the mine's first phase was plagued by higher-than-expected costs.
Cliffs Natural said in November it would cease production at Bloom Lake after failing to sell a 30 percent stake in the mine.
Both the companies were not immediately available for comment.
https://www.bnn.ca/News/2015/3/19/Cliffs-Natural-sued-by-Scotiabank-for-breach-of-debt-terms.aspx