Unions representing miner Samarco employees present competing restructuring plan -source

　　div classBodysc17zpet90 cdBBJodivpSAO PAULO Reuters – Two unions representing employees of the miner Samarco Mineracao SA has filed a restructuring plan for the company, according to a source with knowledge of the matter.p

　　pThe plan is supported by current shareholders in Samarco, Vale SA and BHP Group, and is similar to the previous plan proposed by Samarco and rejected by bondholders. pdivdivdiv classBodysc17zpet90 cdBBJodiv

　　pThe union groups plan includes a twoyear job stability clause to Samarco employees. The debtforequity swap is similar to what Samarco had offered previously to financial creditors. Samarco and BHP will continue to be controlling shareholders. p

　　pThe source, which asked for anonymity to disclose private talks, said employees were afraid of control changes at Samarco and potential layoffs. p

　　pFinancial creditors presented their proposal on Wednesday, proposing a debtforequity swap that would change Samarco control. p

　　pThe employees proposal also adds the payment of “extraordinary dividends” to financial creditors of a share of additional cash flow generated if the miner can accelerate production rampup. p

　　pIt‘s still unclear how the bankruptcy court will proceed after the filing of two different plans, one by the unions and another by bondholders, since Samarco’s last restructuring plan was rejected by creditors. The union plan was filed under seal but will become public on Thursday. p

　　pThe plan is supported by the employees and by 935 unsecured creditors with a total credit volume of around 5 million. p

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　　pp Reporting by Tatiana Bautzer Editing by Tom Hoguep

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