Cliffs Faces Recapitalization, Credit Suisse Says
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Cliffs Natural Resources Inc., the biggest U.S. iron-ore producer, will need to be recapitalized within the next one to two years, Credit Suisse Group AG analysts said, amid a global slump in the price of the commodity.
While Cliffs has made progress under new management this year, including cutting some expenses and announcing it may exit operations in eastern Canada, near-term earnings aren’t sufficient to support its debt load, analysts led by Nathan Littlewood in New York said in a note today.