A Minas Gerais state court has declared bankruptcy for MMX Sudeste Mineração, a subsidiary of MMX, which in turn is still pending its own bankruptcy protection, MMX said this week.
MMX is an iron ore producer which depends on its subsidiary, MMX Sudeste Mineração, to carry own its bankruptcy protection plan. MMX said it wasn’t officially notified of the court decision, adding that it will strategically review its options.
MMX said the bankruptcy of MMX Sudeste Mineração would hinder a term sheet signed with China Development Integration Limited (CDIL), which reportedly would invest to aid the company.
As reported by SteelOrbis, a Brazilian investors association labeled the reported CDIL investment as “fake.” MMX said the bankruptcy of MMX Sudeste Mineração would also hinder the holding’s own bankruptcy protection plan.