Samarco mulls debt restructuring plan

Monday, 01 February 2021 19:14:14 (GMT+3)   |   Sao Paulo

Brazilian pellet producer Samarco, a 50/50 joint venture (JV) between Vale and BHP Billiton, is reportedly mulling a debt restructuring plan, as the company resumed activities in mid-December, a media report from Bloomberg said.

The media report said Samarco would restructure about $3.8 billion in delayed payments to creditors, people familiar with the matter told Bloomberg.

Samarco would reportedly need to adjust its debt to its current size and output volumes, as the company halted activities for five years. Samarco will use 26 percent of its capacity in 2021, according to a recent Vale estimate.

The media report noted uncertainties over Samarco’s environmental repair and compensation payment plans still cast doubts over what could be a “sustainable” debt restructuring plan for the company.

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