Brazilian flats producer Usiminas approved the final terms of a debt restructuring plan, which is expected be signed next Monday, the company said on Friday at a document filing at the nation’s securities exchange commission, CVM.
According to Usiminas, the deal involves 92 percent of the company's total debt, and won’t change the terms already negotiated in June with creditors, which are mainly banks from Brazil and Japan.
Under the approved deal, Usiminas is required to comply with several terms, such as providing statements and guarantees and accepting “certain” covenants, which weren’t fully explained by the steelmaker.
Under the approved deal, Usiminas is required to comply with several terms, such as providing statements and guarantees and accepting “certain” covenants, which weren’t fully explained by the steelmaker.
Usiminas said that until it fully repays its creditors, it will limit itself to only pay dividends that are required by law or company bylaws.
Additionally, Usiminas said that deal “preserves” its financial and operational capabilities, “adjusting its debt profile to the short, mid and long-term perspectives.”
In the approved deal, Usiminas is required to release at least BRL 700 million from MUSA, its mining division, otherwise maturities could be anticipated.
In June this year, creditors agreed to extend Usiminas maturities for 10 years with a three-year grace period on the principal.