SAO PAULO, Feb 17 (Reuters) - Management at Brazilian steelmaker Usiminas will propose a capital increase of 1 billion reais ($245 million) to its board of directors on Wednesday, newspaper Estado de S. Paulo reported, citing sources close to the company.
Representatives at Brazil’s largest listed flat steelmaker, known formally as Usinas Siderúrgicas de Minas Gerais SA, could not immediately be reached for comment.
Reuters reported on Friday that Usiminas was negotiating with banks to refinance about 4 billion reais in loans maturing in the next two years as the steelmaker faces cash pressures to repay debt.
The banks demand the company be capitalized prior to any debt relief plan, but a rift between controlling shareholders Nippon Steel & Sumitomo Metal Corp and Techint Group has kept plans in doubt.
$1 = 4.07 Brazilian reais Reporting by Brad Haynes; Editing by Mark Potter