Creditors for pellet producer Samarco have filed a lawsuit to prevent the company from obtaining a loan provided by the company’s shareholders, Vale and BHP Billiton, according to a media report by Reuters. Vale and BHP Billiton would provide BRL 1.2 billion ($239.5 million) to help Samarco finance its restart.
Samarco has recently filed for bankruptcy protection following a five-year halt. The company holds approximately BRL 50.5 billion ($10 billion) in debt, which includes creditor debt, and shareholders debt. Creditors include mainly financial companies; Samarco owes banks about BRL 26.4 billion ($5.2 billion).
Creditors want a Brazilian court to prevent Samarco from obtaining the loan, in addition to preventing Samarco from making any payment to the Renova foundation, which was set up to compensate for damages due to the Mariana dam disaster.
Creditors also argued the loan from Vale and BHP Billiton offers a more expensive interest when compared to Vale’s foreign bonds.