Brazilian court prevents CSN-appointed members to join Usiminas board

Thursday, 16 June 2016 23:52:47 (GMT+3)   |   Sao Paulo
       

A Brazilian regional federal court has revoked a decision of the nation’s anti-trust authority, Cade, which allowed CSN to appoint members to the Usiminas board. CSN is a competitor and a minority shareholder at the flats steelmaker.

According to judge Jirair Aram Meguerian the Usiminas board should continue working with 9 and not 11 members, leaving no room for CSN-appointed executives Gesner Oliveira and Ricardo Weiss.

Meguerian had already prevented CSN from appointing members to the Usiminas board, but after the judge went on vacation, a second judge from the same court reviewed the decision.

Cade, which had prevented CSN from appointing members to the Usiminas board a few years ago surprised Usiminas major shareholders Ternium and Nippon Steel by letting rival CSN to have a space in the board.

The move happens as Usiminas announced a debt restructuring with its creditors. Additionally, the flats steelmaker announced this week plans to dismiss between 400 and 500 workers at its Cubatao mill located in the city of same name in the state of Sao Paulo.

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