Brazilian pellet producer Samarco, a 50/50 joint venture between Vale and BHP Billiton, has reportedly declined creditors’ request to renegotiate debt, according to a media report from Bloomberg.
The media report noted Samarco’s approach increases the creditors’ perception about the company’s debt risk. Samarco reportedly argued it still needs to strengthen its business model before it can renegotiate debt. Renegotiating existing debt at this point would put the pellet producer in disadvantage, the media report said, citing unnamed sources.
Samarco reportedly has debt totaling $2.9 billion, following the collapse of the Mariana dam, which killed 19 people and halted production at the company in November 2015.