Australia's Fortescue enters trading haltComtex News Network
SYDNEY, Sep 13, 2012 (Xinhua via COMTEX) -- Fortescue Metals Group has entereda trading halt as it remains concerned about rumors andspeculation about its bank facilities, the Australian thirdlargest iron ore miner announced Friday.
Fortescue shares closed nearly 14 percent lower at 2.99 AUdollars on Thursday amid reports it had asked its lenders to waiveits debt obligations for the next 12 months.
On Friday, Fortescue said discussions with its banks hadprogressed well overnight and it was in the best interests ofshareholders to halt trading in its shares.
"Fortescue reiterates its announcement from yesterday that itis in compliance with its banking covenants and is conductingdiscussions with its supportive banking group," the company saidin a statement.
Concerns are growing about the ability of Fortescue to meet itsdebt commitments as the spot price of the iron ore has plungedmore than 30 percent in the past two months.