Brazil’s iron ore giant MMX to file for bankruptcy

Shares in iron ore mining company MMX Mineração e Metalicos (BVMF:MMXM3) were falling by almost 8% Tuesday, hitting an all-time low, after a broadly read Brazilian magazine reported the company may file for bankruptcy protection.

According to Veja Magazine (in Portuguese), the company founded in 2005 by mining magnate Eike Batista, once Brazil’s richest businessman, is planning to ask a local court for protection from creditors by the end of August.

Earlier this month the ex-magnate said it would transfer 17.1 million shares, or 10.5% of the iron ore mining company to a fund owned by the government of Abu Dhabi and led by billionaire Mohammed bin Zayed Al Nahyan.

Brazil’s iron ore giant MMX to file for bankruptcy

Source: Google Finance.

Batista has spent the last 18 months watching his EBX empire slowly crumble to pieces. Last year his oil company OGX Petróleo e Gas Participações SA (BVMF:OGXP3) filed for bankruptcy, and logistics business LLX (BMVF:LLXL3) was taken over by U.S. equity fund EIG.