Chile rescue mine agrees to pay debts

November 26, 2010 | 09:33

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The Chilean company behind the mine from which 33 miners were rescued last month, following its collapse, has agreed to sell its assets within 15 months to avoid bankruptcy, a court said Thursday.

Reports said the move would enable the company to settle some accounts with its miners.

Thirty three Chilean were miners trapped underground for more than two months before being rescued from the San Jose mine, in northern Chile, in October.

Creditors to the San Esteban mining company, which owns the mine, have agreed to a 15-month delay for the company to pay all its debts, judge Rocio Perez, who ratified the deal, said Thursday.

The measure will permit the mine to pay half of the money owed to the 300 workers of the San Jose mine -- who lost their jobs after its collapse -- due to the sale of a piece of land for one billion pesos (two million dollars), according to Radio Cooperativa.

Chilean courts are holding the total wealth of the company, some $9.7 million, as a precautionary measure to assure payment of compensation and the cost of the rescue, estimated at between $10 and 20 million.

AFP

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