SAO PAULO – The judge overseeing Brazilian miner Samarco Mineracao's bankruptcy has scheduled a mediation hearing between the company, shareholders Vale and BHP and creditors to hammer out a restructuring agreement.
Creditors rejected the company's last proposal on April 18 and filed an alternative plan a month later, in which a debt-for-equity swap would turn them into Samarco's controlling shareholders.
Unions representing employees presented another plan on May 19, with Samarco and its shareholders' support.
Judge Adilon Claver de Resende said the mediation hearing aims to find middle ground between the proposals. It has not yet been decided how the restructuring would proceed with the two competing plans.