Brazilian pellet producer Samarco, a 50/50 JV between BHP Billiton and Vale, missed a $20 million bond interest payment, just one month after it missed another bond interest payment of $13.5 million to creditors.
The $20 million interest payment is related to a $700 million bond that was due on Monday Oct. 24, the company said. In September, the pellet producer failed to pay a $13.5 million interest payment on a $500 million bond.
The company has a 30-day grace period to make a payment for the senior unsecured notes that are due in 2023.
In a note to investors, Samarco said it “continues” to explore the options it has for “restructuring” its debt.
“Additionally, remediation and compensation programs determined by a deal with the Brazilian government continue to be complied,” the company said.
Samarco has some $2.2 billion in bond debts and about $1.6 billion in bank loans. Interest payments on the three bonds it has until November total $54 million.