Peru: Creditors reject Doe Run’s payback plan

Isabel Guerra

Peru: Creditors reject Doe Run's payback planThe payback plan that Doe Run presented to its creditors has not convinced them, said to Reuters a source from a creditor firm, and this is likely to complicate the resumption of operations of the largest metallurgical complex in the country, reports daily Gestión.

Doe Run Peru, a unit of US based Renco Group that operates the smelter and refinery at La Oroya, has a US $ 10 million debt to mining suppliers, and has pending investments worth US $150 million on an environmental cleanup plan.

"We have not accepted Doe Run’s proposal because they want us to design an attorney to represent us in our own lawsuit or trial," said the source of a major mining firm, who asked not be identified.

Doe Run would be seeking to avoid a bankruptcy order.

Some of the creditor companies are Buenaventura and Volcano, among others.

This Doe Run is crisis is a real concern for Alan Garcia’s government, since closing La Oroya would also mean to cut 3,500 direct jobs and 16,000 indirect jobs, generating a social problem in Junin region.

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