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Brazil prosecutors search to pressure Vale, BHP to repay Samarco’s debt -court doc Reuters by way of biedexmarkets.com

Brazil prosecutors seek to force Vale, BHP to pay off Samarco

© Reuters.

By Carolina Mandl and Marta Nogueira

SAO PAULO/RIO DE JANEIRO (Reuters) – Brazilian prosecutors requested a chapter court docket on Wednesday to compel miners Vale SA (NYSE:) and BHP Group (NYSE:) Ltd to completely repay their Samarco three way partnership’s 50.7 billion reais ($9.47 billion) debt, in line with a court docket doc reviewed by Reuters.

Samarco filed for chapter safety in April because it struggled to restructure its debt, which it stopped servicing after a dam burst at a mine in 2015, killing 19 folks, releasing an enormous torrent of sludge and halting manufacturing.

Prosecutors take into account Samarco’s co-owners to be chargeable for the catastrophe and are looking for a restraining order that will oblige them to cowl its debt, in line with the doc.

The prosecutors stated each controlling shareholders used Samarco to acquire rapid good points amid an iron-ore value increase, which they are saying precipitated the dam’s collapse.

“They selected to place in danger the lives of people that lived and labored there, in addition to the surroundings, inflicting tragic penalties and incalculable damages,” they wrote.

Vale stated in a securities submitting it was stunned by the prosecutors’ request.

“The request assaults the clear letter of the agreements signed between the events, to which the MPMG (prosecutors from Minas Gerais state) is a signatory, along with threatening the continued discussions and efforts to renegotiate the reparation measures for harm ensuing from the Fundão dam collapse,” the corporate stated.

BHP stated in a press release the chapter safety request was the very best answer it discovered to permit Samarco to recuperate financially.

($1 = 5.3543 reais)