Bankruptcy of MMX, by Eike Batista, is suspended by the Justice of MG and mining company can boost the Brazilian mining market

After being taken into bankruptcy at the beginning of the month, MMX Sudeste, Eike Batista's mining company, managed to suspend the bankruptcy in the Court of Minas Gerais (MG) and its contract with the Chinese group CDILL of R$ 50 million can boost the mining sector

The mining company MMX Sudeste, in a lawsuit in the MG Court that has been dragging on since 2014, managed to suspend the bankruptcy in 1st Business Court of the District of Belo Horizonte after filing an appeal. Eike Batista's mining company claimed that it was not entitled to comment on the Judicial Administrator's decisions to convert the judicial reorganization into bankruptcy.

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MMX Mineração, owned by Eike Batista, pronounces in a note about the process in MG

According to MMX Mineração, the decision to convert the court-supervised reorganization into bankruptcy could not have been made without MMX Sudeste being able to express its opinion on the allegations presented by the Trustee about the alleged disorder in the company's recovery plan in the Justice of MG .

The bankruptcy of other Eike Batista mining companies

Last Wednesday, MMXM3 and MMX Corumbá, also owned by Eike Batista, were declared bankrupt, which had a direct impact on the mining company's shares, which fell 27% to R$14,67.

The assets of mining companies had their trading halted. Eike Batista's mining company also reported that bankruptcies could directly interfere with the Term Sheet, a document with investment conditions with the Chinese group CDILL, in which it committed to investing around R$50 million in MMX to boost the market of mining.

The bankruptcy of MMX Sudeste in MG and controversies with the Chinese group

The bankruptcy decision at the beginning of the month was decreed by Judge Claudia Helena Batista, from the 1st Corporate Court of the District of Belo Horizonte (MG), who is in charge of the judicial recovery of Eike Batista's company. The parent company had already stated that the decision was provisional and would be subject to appeal, as was what happened. As mentioned before, this would have a direct impact on the agreement with CDILL.

Since the announcement of the partnership, some suspicions have been raised since, although CDILL has made the promise to invest 50 million dollars in the mining company, the investor would only have a capital of just US$ 128,60, according to a survey carried out by Brazilian Association of Investors (Abradin) in the Hong Kong investor register. In the petition to avoid the bankruptcy of MMX Sudeste, CDILL's investment was the main argument used to postpone the decision.