Brazilian pellet producer Samarco, a 50/50 JV between Vale and BHP Billiton, is said to be ready to file for bankruptcy protection as the company is running out of cash.
According to a media report citing a source close to the situation, the bankruptcy protection petition is ready in case its co-owners pressure the company to file. The two owners would be Samarco’s main creditors.
Samarco has missed two interest payments on bonds and bondholders could recur to actions such as blocking Samarco’s resources or asking for an anticipation of the debts Samarco owns.
A media report said Samarco can’t resume operations and a bankruptcy protection petition is inevitable.