🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

UPDATE 1-Banco Safra sues Samarco in U.S. court over Brazil dam disaster

Published 15/11/2016, 09:15 am
© Reuters.  UPDATE 1-Banco Safra sues Samarco in U.S. court over Brazil dam disaster
BHP
-
BHPB
-
VALE
-

(Adds details of lawsuit and context, paragraphs 3-8)

By Ana Mano

Nov 14 (Reuters) - Brazilian mining company Samarco Mineração SA SAMNE.UL was sued by creditors in the United States on Monday, accusing it of making false statements about a deadly dam disaster in November 2015.

Banco Safra's Cayman Islands branch, individually and on behalf of investors holding Samarco's bonds due in 2022, 2023 and 2024, said Samarco and Ricardo de Aragão, chief executive offer at the time of the accident, made "false and or misleading statements" related to "the longstanding systemic and structural defects" in the Fundão tailings dam.

Samarco representatives were not immediately available for comment on the lawsuit in Manhattan federal court. Samarco stopped production after the disaster.

The lawsuit seeks compensation for damages caused by any violations of U.S. securities laws and seeks class action, or group status, for investors. It said New York was the proper jurisdiction because the bank bought Samarco notes from broker-dealers and counterparties in the district.

Banco Safra's lawsuit makes reference to a burst tailings dam at a Samarco mine, which unleashed a mud flow that killed 19 people, left hundreds homeless and polluted the Rio Doce River.

The government called it Brazil's worst environmental disaster.

Samarco, a 50-50 joint venture between Vale VALE5.SA and BHP Billiton (LON:BLT) BHP.AX , has $2.2 billion in outstanding bond debt. The company is in default after missing two interest payments related to its bond obligations. Safra also claims investors were led to believe Samarco had taken measures to avoid a catastrophic disaster at its Fundão tailings dam, but these measures were not in place.

The case is Banco Safra - Cayman Islands branch v Samarco Mineracao, et al, U.S. District Court, Southern District of New York, No. 16-cv-08800

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.