SYDNEY, Sept. 14 (Xinhua) -- Fortescue Metals Group has entered a trading halt as it remains concerned about rumors and speculation about its bank facilities, the Australian third largest iron ore miner announced Friday.
Fortescue shares closed nearly 14 percent lower at 2.99 AU dollars on Thursday amid reports it had asked its lenders to waive its debt obligations for the next 12 months.
On Friday, Fortescue said discussions with its banks had progressed well overnight and it was in the best interests of shareholders to halt trading in its shares.
"Fortescue reiterates its announcement from yesterday that it is in compliance with its banking covenants and is conducting discussions with its supportive banking group," the company said in a statement.
Concerns are growing about the ability of Fortescue to meet its debt commitments as the spot price of the iron ore has plunged more than 30 percent in the past two months.