Brazilian steelmaker Companhia Siderurgica Nacional (CSN) has reportedly agreed on a deadline to resume talks with creditor Banco Bradesco, according to a media report from Estadao. The talks are aimed at extending CSN’s debt with the commercial bank.
In order to resume talks, CSN would need to revert a court decision, which prevented it from paying BRL 890 million ($220.8 million) in dividends for shareholders. If CSN reverts the decision, part of the dividends would strengthen the holding’s cash position.
The money coming from dividends would be used by CSN’s holding to pay part of the steelmaker’s debt with Bradesco, the media report said. That way, CSN could resume talks to extend existing debt.
CSN has made efforts to sell non-core assets in order to reduce debt. It has already re-negotiated debt with state-run banks and creditors Banco do Brasil and Caixa Economica Federal.