Samarco proposes to pay BRL 14 billion to financial creditors – 05/18/2023 – Panel SA

Samarco’s main creditors opened negotiations with the mining company and its shareholders, Vale and Canadian BHP, to pay off almost BRL 25 billion – equivalent to half of the company’s financial debt when it entered into judicial recovery.

Talks began this Monday (17), in the USA. The company — and the partners — want to pay what they owe, but they are looking for a good discount — 42% of face value. They say they can pay back $2.9 billion instead of $5 billion (debt amount).

Debts involve bonds (securities issued by Samarco) held by banks and investment funds. Last year, this same group pressured Vale and BHP to surrender their shares in payment for the maturity of the bonds, which would guarantee them command of the mining company.

This agreement was rejected in the face of resistance from shareholders and due to a lack of clarity about possible new fines to be applied by the Federal Public Ministry of Minas Gerais, still as a result of the damage caused by the accident at the Mariana dam, in Minas Gerais —causing the worst environmental disaster in history.

Creditors estimate that these fines alone can reach values ​​greater than the company itself, without including the agreement previously made with the state MP.

When contacted, Vale, BHP and Samarco declined to comment.

With Diego Felix

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