Brazilian pellet producer Samarco, a 50/50 joint venture between Vale and BHP Billiton, will resume conversations with investors to restructure a $4 billion debt, a media report from Reuters said.
Citing unnamed sources, the media report said debt conversations were on hold as Samarco was negotiating with prosecutors a safer timeline for the company to resume operations.
Moelis & Co is advising Vale, while BHP has Rothschild as its advisor, and Samarco is being advised by JPMorgan Chase & Co, according to the media report.
Sources said it could take months for Samarco to reach an agreement with creditors over both the debt maturity and a reduction in the principal value.