MMX Sudeste files bankruptcy recovery plan

Wednesday, 31 December 2014 00:49:25 (GMT+3)   |   Sao Paulo
       

Brazil mining and iron ore company MMX presented on Tuesday a bankruptcy recovery plan, according to a document filled with Brazil’s CVM, the nation’s securities regulator. According to the document, MMX Mineracao Sudeste, which’s part of MMX, plans to “conquer its economic and financial crisis” and “implement the needed measures to its operational reorganization.”

“The present plan seeks to establish a way of liquidation of [MMX Mineracao Sudeste] debt tenders, making feasible, this way, not only the maintenance of MMX Sudeste activities’, but also the retake of its investment capacity,” the document said.
 
MMX Sudeste assets have been evaluated by an external audit by BRL 222.75 million (US$83.84 million). The statement continued: “The relevance of the mining exploration rights resulting from contracts that were celebrated with … Cefar and Usiminas … added to the strategic participation [of MMX Sudeste] in load terminals allow … [MMX] to forecast a  well-succeeded bankruptcy recovery plan, if this plan is approved.”

In the filling, MMX Sudeste listed four ways by which it intends to make its bankruptcy recovery plan possible. According to the document, it plans to restructure and settle its debts, alienate its fixed assets, obtain new investments and make a shareholder restructuring.

MMX said the “abrupt reduction” in iron ore prices in 2014, which is the result of a weak demand from Chinese steel mills, “contributed enormously to the worsening of [its] crisis.”

 


Similar articles

Ex-Brazil BPI exporters achieve slight rise in latest deals to US amid better scrap sentiment

28 Mar | Scrap & Raw Materials

Brazilian high-grade iron ore price declines sharply in two days

27 Mar | Scrap & Raw Materials

Vale selected to begin award negotiations for US briquette plant

26 Mar | Steel News

Prices stable for Brazilian slab export deals

26 Mar | Flats and Slab

Brazilian high-grade iron ore price stable from last week

25 Mar | Scrap & Raw Materials

CRC import price offers stable in Brazil

25 Mar | Flats and Slab

Price gap between low and high-phosphorus Brazilian BPI narrows in last deals

25 Mar | Scrap & Raw Materials

Brazilian crude steel production increases in February

22 Mar | Steel News

Vale and Samarco subject to lawsuit in the Netherlands

20 Mar | Steel News

Brazilian high-grade iron ore price increases from last week

19 Mar | Scrap & Raw Materials