NEW YORK (TheStreet) -- Shares of Cliffs Natural Resources (CLF) - Get Report are slipping, down 7.53% to $4.24 in midday trading Thursday, after the iron ore miner has been sued by Canada's Bank of Nova Scotia (BNS) - Get Report for allegedly breaking debt terms related to its Bloom Lake mine in Quebec, according to Reuters.

The bank is suing the iron ore miner for $52.6 million, after Cliffs said in January that it was seeking creditor protection for its Canadian operations.

Its application for creditor protection in Canada "constituted a default" under the loan agreement, according to the lawsuit filed in a U.S. District Court in Ohio on March 16, Reuters added.

Cliffs Natural said in November that it would end production at Bloom Lake after failed attempts to sell a 30% stake in the mine, Reuters noted.

Cleveland, OH-based Cliffs Natural Resources is an international mining and natural resources company.

The company is an iron ore producer and a producer of metallurgical coal with its operations organized according to product category and geographic location.

In the U.S., Cliffs operates five iron ore mines in Michigan and Minnesota, five metallurgical coal mines located in West Virginia and Alabama and one thermal coal mine located in West Virginia.

Insight from TheStreet's Research Team:

Bob Byrne commented on Cliffs Natural Resources in a recent post on RealMoney.com. Here is what Byrne had to say about the stock:

In the world of bottom-fishing stocks, few names have hurt traders worse than those in the coal and iron-ore sectors. I received several questions regarding Peabody Energy (BTU) and Cliffs Natural Resources (CLF) on Thursday, and while I tried to keep open mind, I just can't find a single reason to buy either stock. It doesn't matter whether you're looking at BTU, Alpha Natural Resources (ANR), Cloud Peak Energy (CLD) or Walter Energy (WLT).

From a technical perspective, they're all pretty much the same. Ugly! They should all be avoided. And as far as CLF is concerned, there's little to do there until iron ore futures begin to stabilize. For the record, iron ore futures were printing new multi-year lows on Wednesday. Like anything in the coal sector, CLF should be avoided.

-Bob Byrne, 'The Trade Daily' originally published 3/13/2015 on RealMoney.com.

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Separately, TheStreet Ratings team rates CLIFFS NATURAL RESOURCES INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:

"We rate CLIFFS NATURAL RESOURCES INC (CLF) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share." You can view the full analysis from the report here: CLF Ratings Report