Investors to aid Brazilian iron ore company under bankruptcy protection

Investors to aid Brazilian iron ore company under bankruptcy protection

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Two investors, including Rubican Capital Partners and China Development Integration Limited, have signed a contract with Brazilian iron ore company MMX to help aid it, MMX said.

Two MMX subsidiaries, MMX Sudeste and MMX Corumbá Mineração, also signed the contract.

Under the signed term sheet, MMX would issue bonds through DIP financing. DIP financing is a funding provided to companies that filed for the US-equivalent Chapter 11 bankruptcy protection. The investors agree to buy up to $50 million in bonds, which account for part or all the bonds.

The investors will also decide where the money raised will be spent.

MMX and MMX Corumbá can either use the proceeds to pay creditors or develop its Bom Sucesso iron ore mine.

The agreement with the two investors aims to help MMX get back on the iron ore business.

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