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.”