Brazil’s development bank, BNDES, has approved the terms of Usiminas’ debt restructuring, the Brazilian flats steelmaker said on Thursday.
According to Usiminas, the approval of the terms by the government-run bank was still pending and was necessary for Usiminas to advance with the debt restructuring. The debt restructuring gives Usiminas some relief and distances it from filing for bankruptcy protection, at least in a short term.
Usiminas’ proposed deal to restructure 75 percent of its debts should extend extending maturities for 10 years with a three-year grace period to start repaying the principal. Creditors include bondholders and Brazilian banks including Banco do Brasil, Bradesco and Itau, as well as the nation’s development bank, BNDES.
Usiminas didn’t name the bondholders, but said those have bought the bonds through Pentagono S.A. Distribuidora de Titulos e Valores Mobiliarios.
Usiminas said the deal is subject to “certain suspensive conditions.” The contract is also tied with the company’s recently approved BRL 1 billion ($288.4 million) capital injection.