Minas Gerais state prosecutors have asked a Brazilian court to suspend Samarco’s bankruptcy recovery plan. Samarco is a 50/50 joint venture between Vale and BHP Billiton. Prosecutors have also asked the court to freeze assets of both Vale and BHP Billiton of BRL 50 billion ($9.29 billion), according to media reports.
Prosecutors 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 pellet producer Samarco.
The prosecutors also argued that out of Samarco’s debt restructuring plan of BRL 50 billion ($9.29 billion), almost half of it or BRL 23.7 billion ($4.4 billion) is debt owned to both Vale and BHP Billiton. Prosecutors said both shareholders are responsible for Samarco’s environmental obligations.