Brazilian mining company Vale S.A. (VALE) announced on Dec. 27 that its latest joint venture debt restructuring plan failed to materialize. Before market open this morning, VALE stock fell 2.49% in price.
Bondholders Reject Debt Restructuring Plan
A group representing a majority of bondholders in Samarco — a joint venture between Vale S.A and BHP Group (with 50% equity stake each) — has shot down Vale’s latest business plan and its new debt restructuring proposal at a recent meeting.
Debt Restructuring Proposal
According to a press release, in accordance with the judicial reorganization process, Samarco submitted its business plan and a new debt restructuring proposal for consideration on December 15, 2021. “As of this date, the parties have not reached an agreement for a consensual restructuring and according to the terms previously agreed, Samarco would have to disclose this information by December 27th, 2021.”
Fresh Proposals
A restructuring proposal offered by the company in July was rejected by bondholders as well. Fresh proposals are expected soon.
VALE has a Short-Term Technical Rank of 37. Find out what this means to you and get the rest of the rankings on VALE!
Vale is the world's largest iron ore miner and one of the largest diversified miners, along with BHP and Rio Tinto. Earnings are dominated by the bulk materials division, primarily iron ore and iron ore pellets, with minor contributions from iron ore proxies, including manganese and coal. The base metals...
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