Samarco and creditors to go through mediation about debt restructuring

The Germano complex. Image from Samarco.

Brazilian miner Samarco Mineracao and its financial creditors will begin formal mediation about a consensus debt restructuring plan in a court in Minas Gerais, the bankruptcy judge decided on Tuesday, according to a document seen by Reuters.

Judge Adilon Resende had scheduled a conciliation hearing between the company and its creditors on Tuesday as the parties offered competing debt restructuring plans. The formal mediation will begin next month, the decision added.

The plan initially proposed by Samarco, a joint venture of miners Vale SA and BHP Group, was rejected by financial creditors in April.

The creditors and unions representing Samarco’s employees, with the company support, filed competing restructuring plans last month.

(By Tatiana Bautzer; Editing by Leslie Adler)

Related: BHP, Vale reject Brazil steelmaker CSN’s interest, say miner Samarco is not for sale


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