- Write by:
-
Thursday, May 19, 2022 - 14:37:43
-
757 Visit
-
Print
Mining News Pro - An alternate restructuring plan for Samarco Mineracao SA, a joint venture between Vale SA and BHP Group, proposes that financial creditors take control of the company.
The plan filed by a group of bondholders is expected to replace Samarco’s debt restructuring proposal, which was rejected last month.
The bondholders group, which includes asset managers such as Oaktree Capital, Silver Point Capital, GoldenTree Asset Management LP and Solus Alternative Asset Management, expects most of the $4 billion debt to be converted into equity.
Renato Franco, founder of restructuring firm Integra Associados, which is advising creditors, estimates creditors will hold around 90% of the company after the restructuring.
Shareholders Vale and BHP are expected to ask the bankruptcy court for the right to vote on the plan. If their vote is not allowed, the creditors’ plan could be easily approved.
Creditors are proposing to bring forward deadlines to ramp up production and accelerate cash flow generation. The plan has a target of doubling iron ore production by 2024, to 14 million tonnes annually, and reach full capacity at 28 million tonnes annually by 2026. The shareholders plan expected this volume to be reached by 2029.
Tito Martins, a former Vale executive who advises Samarco creditors and may become the company’s chairman, said investments in safer mining technology would allow a faster production ramp-up.
Samarco went bankrupt as it dealt with the fallout of its 2015 dam burst in the city of Mariana, in Minas Gerais state, which killed 19 people and caused extensive environmental damage. The company resumed production last year.
In a statement on Wednesday, Samarco said it had seen the creditors’ proposal in the bankruptcy process, and said it would take appropriate legal measures to prevent conduct and proposals that threaten “its perpetuity or do not consider the importance of its social function and remedial actions.”
After improving cash flow, advisers to creditors, Integra Associados and investment bank Houlihan Lokey may look to sell the company to a strategic investor, Martins added.
Short Link:
https://www.miningnews.ir/En/News/621368
Mining News Pro - Brazilian miner Samarco Mineracao and its financial creditors will begin formal mediation about a ...
Mining News Pro - Brazilian steelmaker Companhia Siderurgica Nacional (CSN) is drafting an offer to acquire miner ...
Mining News Pro - Samarco Mineracao SA, an iron-ore producer jointly owned by Vale SA and BHP Group, presented a new ...
Mining News Pro - Poland was chided by an adviser to the European Union’s top court over its refusal to shut down a ...
Mining News Pro - The “socio-environmental” damage brought about by the 2015 rupture of a tailings dam in Brazil owned ...
Mining News Pro - Creditors in bankrupt miner Samarco Mineracao, a joint venture between Vale and BHP Group, made on ...
Mining News Pro - Samarco Mineracao SA, a joint venture between Brazilian miner Vale SA and BHP Group Ltd, has filed for ...
Mining News Pro - BHP and Vale’s beleaguered Samarco joint venture in Brazil has been hit with an almost $1 billion ...
Mining News Pro - Samarco started its first iron ore shipment on Monday after restarting operations in December, five ...
No comments have been posted yet ...