Brazilian court accepts Samarco’s request for bankruptcy protection

Brazilian court accepts Samarco’s request for bankruptcy protection

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A Brazilian court in the state of Minas Gerais has accepted a request from pellet producer Samarco, which filed for bankruptcy protection, as reported by SteelOrbis. The company’s request will allow it to continue operating despite a multi-billion-dollar debt with foreign creditors.

The bankruptcy protection plan in Brazil is similar to the US Chapter 11. Samarco said most of its debt belongs to foreign bondholders, who didn’t agree on the company’s terms to restructure its debt, estimated by Bloomberg earlier this year at $3.8 billion.

Samarco is currently operating at 26 percent its iron ore capacity.

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