Vale SA and BHP Group Ltd face pressure to payoff their Samarco joint venture’s BRL 50.7bn ($9.5bn) debt, as Brazilian prosecutors requested a bankruptcy court to compel repayment. Samarco struggled to restructure its debt, after a dam burst in a mine in 2015, and filed for bankruptcy in April 2021. Samarco’s best solution to recover financially was the bankruptcy protection request, according to a statement released by BHP.
“The request attacks the clear letter of the agreements signed between the parties, to which the MPMG (prosecutors from Minas Gerais state) is a signatory, in addition to threatening the ongoing discussions and efforts to renegotiate the reparation measures for damage resulting from the Fundão dam collapse,” the company said.
Vale´s USD bonds were slightly down with its 7.2% 2032s down 0.67 to 132.415, yielding 3.62%.
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