Creditors have rejected a bankruptcy recovery plan presented by Samarco, the Brazilian pellet producer owned by Vale and BHP Billiton.
According to a media report by Reuters, creditors argued that Samarco’s bankruptcy recovery plan shields the two shareholders while also reducing payments to bondholders and creditors.
The media report said creditors refused an 85 percent discount Samarco proposed to its largest creditors, including shareholders Vale and BHP Billiton. The debt payments would occur in 2024.
Creditors argued Vale and BHP Billiton should only be paid after other creditors recover their money. Creditors also refused Samarco’s debt to equity proposal.