Receivership

Belo Horizonte, June 10, 2021 – Samarco officially filed a Judicial Recovery plan offered to creditors as part of the proceeding already accepted by the Brazilian Courts. The objective of the JR is to allow the company to maintain its production activities and preserve its social function of generating employment, income and tax revenue.

Samarco’s Judicial Recovery process was initiated on April 9, 2021, when the company filed the application with the Minas Gerais Court.

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Samarco's Judicial Recovery Plan

Title Date  
Plano de Recuperação Judicial 10/06/2021
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Laudo Econômico Financeiro 10/06/2021
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Laudo de Avaliação de bens e ativos 1 10/06/2021
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Laudo de Avaliação de bens e ativos 2 10/06/2021
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Laudo de Avaliação de bens e ativos 3 10/06/2021
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Laudo de Avaliação de bens e ativos 4 10/06/2021
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Press Releases

Title Date  
Samarco files for judicial recovery plan 10/06/2021
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Press Release Court defers the processing of Samarcos Judicial Reorganization 12/04/2021
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Samarco Files Judicial Reorganization Request to Keep its Production Activities 09/04/2021
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Notices

Title Date  
Edital Samarco - art.52 03/05/2021
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Documents

Title Date  
Grant 12/04/2021
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Inicial petition 09/04/2021
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Understanding the Judicial Reorganization process

Judicial Reorganization (“JR”) is a procedure provided for by law, aimed at companies that need to restructure their debt. This proceeding allows the recovery of the financial health of companies in distress, but with debts to be renegotiated. In order to achieve such purposes, the law provides for the stay of all individual enforcement proceedings filed by creditors during the negotiation period (180 days that may be extended for the same period). Creditors are called to engage negotiations with the debtor. In this process, we will be able to renegotiate debts collectively, uniformly and transparently. Throughout the process, we will maintain the current production activities and other regular operations. There is no forecast of changes in this regard.

The main request formulated in a Judicial Reorganization is the confirmation of a judicial reorganization plan, after approved by creditors, which aims to restructure the company’s indebtedness. Samarco filed for judicial reorganization to mainly restructure its financial debt. The company opted to file for judicial reorganization at this time due to certain enforcement steps taken and lawsuits filed by some creditors in the United States and Brazil that may threat Samarco´s operations. Samarco has been committed to entering into an extrajudicial agreement with its creditors to renegotiate the debt, which was not possible. As a last resort to ensure the protection of its operations, the company opted to file for judicial reorganization. Thus, the request at this time serves to protect Samarco’s operation and its workforce.

It’s important to make sure that JR (a reorganization proceeding) is different from a liquidation proceeding, JR is a judicial process used to assist a company to restructure its obligations, through a collective proceeding (such as Chapter 11, in USA). This is the case of Samarco who needs to reduce and restructure its balance sheet. On the other hand, the main purpose of a liquidation proceeding is to provide for an organized liquidation of assets and pay creditors in accordance with the payment order provided by law, which is not the case here.