Creditors of Brazilian flats steelmaker Usiminas have extended the company’s standstill agreement for debt restructuring for 60 more days, Brazil’s development bank, BNDES, one of the creditors at the steel producer, said late this week.
BNDES told media in Brazil that the 60-day term extension was decided in conjunction with other creditors, mostly banks, while BNDES awaits the results of the financial restructuring of Usiminas.
Despite the willingness of the banks to extend Usiminas’ debt restructuring term for two more months, creditors said Usiminas should present results regarding its debt restructuring.
After the 60-day period expires, Usiminas will have 10 years for paying its BRL 7.2 billion debt with a threeyear grace period to start repaying the principal, a period in which it will pay just the interest.