A Brazilian court in the state of Minas Gerais denied on Thursday a request by prosecutors to suspend Samarco’s bankruptcy recovery plan, according to a media report by G1. Samarco is a Brazilian pellets producer owned by miner Vale and BHP Billiton.
The court has also denied another request by prosecutors, who sought to freeze BRL 50 billion ($9.2 billion) in assets of both Vale and BHP Billiton. The court said the asset freeze would be inconvenient and would have an effect of extreme negativity in all aspects.
The court labeled the asset freeze as an “extreme request.” The court also considered the request by prosecutors to suspend Samarco’s bankruptcy recovery plan would be another “extreme measure” with clear indications of losses for Samarco and their creditors.
Minas Gerais state prosecutors have argued Samarco’s bankruptcy recovery plan aims to shield its shareholders, BHP Billiton and Vale, from any responsibilities regarding the Mariana dam disaster, which killed 19 people and halted operations at pellets producer Samarco.