Brazilian Iron Ore Producer MMX Mineracao Declares Bankruptcy

by San Antonio Attorney

Brazil-based producer of iron ore MMX Mineracao & Metalicos’ unit, MMX Sudeste Mineracao, sought for bankruptcy protection from creditors at a court in Belo Horizonte.

MMX Sudeste owns the Bom Sucesso and Serra Azul ventures, and brings in the greater part of income for MMX Mineracao, which Brazilian business magnate Eike Batista owns, according to reports.

MMX Sudeste Mineracao is one of the three companies owned Eike Batista to declare bankruptcy after shipbuilding and oil units.

MMX is presently struggling with growing debt and a fall in revenue because of setbacks in iron ore mines in southeastern Brazil’s Minas Gerais and an iron ore terminal in Rio de Janeiro, based on reports.

Moreover, the decrease in iron ore’s price and less demand for the rocks from China has beaten MMX’s profits.

In a statement, MMX said despite the company’s attempts to work out an agreement with creditors and find prospective investors, filing for bankruptcy seemed as the best solution given MMX’s financial status.

In 2013, the company reported enormous losses after stopping the expansion of its Serra Azul venture.

Last February, MMX sold its stake in its iron ore venture in Rio de Janeiro for $400 million to Mubadala and Trafigura for $400m.  In July, it decided to lease its mine in Corumba to Vetria Mineracao.

For individuals and companies in serious financial debt, the right solution could be declaring bankruptcy.  However, it is important to remember that not everyone is eligible for bankruptcy.  You can discuss your situations with a San Antonio Lawyer to get help in determining the right course of action.

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