Brazil’s Votorantim bank has filed a bankruptcy request against iron ore producer Zamin Amapa, according to media reports.
The request by the Brazilian bank, which belongs to metals company Votorantim, was filed this week at the Sao Paulo state court.
According to media reports, Zamin owns Votorantim bank BRL 12.7 million ($4 million) and is facing a series of problems, having halted iron ore operations in the state of Para.
According to media reports, Zamin had no conditions to stock the product, which forced it to stop iron production in Amapa. Adding to the already limited conditions of Zamin is the fact it didn’t complete the construction of a port in the state of Amapa, from which it could export the product.
In December 2014, Zamin had all its assets and properties blocked by Brazil’s public ministry (MPF), a body of independent public prosecutors. MPF also blocked BRL 50 million from the company.