Samarco Rebuffs Creditors on Resumption of Debt Talks

Samarco Mineracao SA has rejected creditors’ formal request to resume talks to restructure its defaulted debt, signaling heightened risks for bond holders, according to people with direct knowledge of the situation, Bloomberg News reported. The Brazilian iron ore venture between BHP Group and Vale SA said it has yet to firm up its business plan. And without that, the company argues that it will be at a disadvantage if it were to resume talks that have been put on hold for almost a year on its $2.9 billion in defaulted debt, the people said. Samarco has said it will restart iron ore mining in the second half of this year after securing all the permits required by authorities. Operations have been halted since a waste dam collapse in 2015 that killed 19 people, curtailing the company’s ability to meet its obligations to creditors. Read more