Brazil's MMX files for bankruptcy protection

Monday, November 28, 2016

MMX, the mining arm of former Brazilian tycoon Eike Batista's (pictured) debt-laden EBX group, has filed for protection from creditors.

In a disclosure sent to local securities watchdog CVM​ late on Friday, MMX said that Brazil's context of political and economic instability and the slump in iron ore prices in the international market made it impossible for the company to achieve its revenue targets.

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The request, filed in a Rio de Janeiro court, includes MMX's iron ore unit MMX Corumbá. Another unit, MMX Sudeste, has a different bankruptcy protection process which is advancing separately, MMX said. Output from both the Corumbá and Sudeste systems was suspended in 3Q14.

Batista's net worth has reportedly fallen to less than US$300mn from an estimated US$43bn in 2011, following the collapse of his once-influential EBX mining and energy group. Analysts blame EBX's demise on spiraling debt and unrealistic production targets.