November 26, 2016 / 7:36 PM / 2 years ago

Brazilian miner MMX Mineracao files for bankruptcy

BRASILIA, Nov 26 (Reuters) - MMX Mineracao e Metalicos SA , the mining company founded by former billionaire Eike Batista, has filed for protection from its creditors in a Brazilian court, citing slumping iron prices and economic adversity.

In a securities filing late on Friday, MMX said: “The fall in iron ore prices and the context of political and economic instability made it impossible for the company to achieve its revenue targets.”

Brazil is mired in a two-year-long recession in what is its worst downturn since the 1930s.

The bankruptcy filing also includes its iron-ore unit MMX Corumbá.

MMX is the latest of the companies created by Batista to fail. The companies have gone through painful restructuring since 2014 when his empire began to crumble amid rampant borrowing and a downward trend in global commodity prices.

Batista, once Brazil’s richest man, saw his more than $30 billion fortune evaporate as a result.

The company said the bankruptcy protection process of another MMX unit, MMX Sudeste Mineracao SA, continues to advance and is separate from the new petition. (Reporting by Anthony Boadle; Editing by W Simon)

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