Samarco Mineração’s $4.7 Billion Restructuring

Samarco Mineração's $4.7 Billion Restructuring

Cescon, Barrieu, Flesch & Barreto and VLF Advogados advised Samarco Mineração on the process.
Norton Rose Fulbright and Pinheiro Guimarães advised Vale.
Sullivan & Cromwell and BMA – Barbosa, Müssnich, Aragão advised BHP Billiton Brasil Ltda.

Samarco filed for judicial reorganization with the Minas Gerais State Court to renegotiate its financial debts.  A large amount of Samarco’s financial debts are held by bondholders abroad.  The purpose of the reorganization request is to ensure that the Company can maintain its production activities.

Samarco’s restarted operations provide jobs, local economic activity and community support as well as continuing the remediation and compensation programs underway through the legally approved programs. It should be noted that JR is not expected to affect any of operational activities and the company’s obligation and commitments towards Renova foundation. In adittion, it does not impact the Renova’s ability to undertake remediation and compensation.

Samarco has been committed to entering into an extrajudicial agreement with its creditors to renegotiate the debt. However, due to the unfeasible demands imposed by creditors, it was not possible to reach a good conclusion to the negotiations. Following recent judicial measures taken by some creditors, led by hedge funds, Samarco opted to file for judicial reorganization protection.

Cescon, Barrieu, Flesch & Barreto advised Samarco Mineração S.A. with Fabio Rosas (Picture), José Luis de Rosa and Felipe Halász de Camargo.

VLF Advogados has also advised Samarco Mineração S.A. on the process.

Norton Rose Fulbright advised Vale S.A. with Michael McCourt, Charles Johnson and Diego Brandão.

Pinheiro Guimarães Advogados advised Vale S.A. in Brazil.

In US, Sullivan & Cromwell advised BHP Billiton Brasil Ltda. with James L. Bromley, John E. Estes y Sergio J. Galvis. Asociado Fabio Weinberg Crocco.

In Brazil, BMA – Barbosa, Müssnich, Aragão advised BHP Billiton Brasil Ltda.

Involved fees earner: José Luis de Rosa Santos Junior – Cescon, Barrieu, Flesch & Barreto; Luiz Guilherme Felipe Halasz de Camargo – Cescon, Barrieu, Flesch & Barreto; Fabio Rosas – Cescon, Barrieu, Flesch & Barreto; Diego Brandao – Norton Rose Fulbright; Charles Johnson – Norton Rose Fulbright; Michael McCourt – Norton Rose Fulbright; James Bromley – Sullivan & Cromwell; John Estes – Sullivan & Cromwell; Sergio Galvis – Sullivan & Cromwell; Fabio Weinberg Crocco – Sullivan & Cromwell;

Law Firms: Cescon, Barrieu, Flesch & Barreto; Norton Rose Fulbright; Sullivan & Cromwell;

Clients: BHP Billiton; Samarco Mineração; Vale S.A.;