Reuters reported Fortescue Metals Group Ltd (ASX:FMG) has asked lenders to waive debt covenants if iron ore prices remain under pressure, the firm said on Thursday.
As quoted in the market news:
…its shares suffered their worst loss in almost four years.
Like other Australian miners, Fortescue’s earnings have come under pressure from a plunge in commodity prices caused by weak demand in top consumer China. This has squeezed its ability to service its long-term debt, which stands at $11.3 billion.