Creditors of Brazilian-Australian mining venture Samarco Mineração have postponed their meeting until April 1 after the company presented a new restructuring plan on Thursday.
Samarco, a joint venture between Brazil’s Vale and Australia’s BHP Group, changed its restructuring plan to offer a new alternative to pay creditors, hybrid bonds that will distribute part of Samarco’s cash flow.
The company did not change other conditions in the plan, such as the 75% haircut over the bonds’ face value.
Bondholders that had rejected Samarco’s previous proposal agreed late on Thursday to suspend the assembly to analyse the new proposal and reconvene on April 1 to vote.
If the new proposal is rejected, creditors may present an alternative plan.
Last April Samarco filed a request for a judicial reorganisation to restructure its debt, which totals about 50 billion reais ($10 billion).
The company said the filing was aimed at protecting Samarco’s operations and its workforce, while the company negotiates with its creditors.
Most of Samarco’s debt is held by foreign funds specialised in the purchase of debt securities.
- Reuters, with additional editing by George Russell