Board of Brazil's Usiminas declines to discuss capital, debt issues, sources say
SAO PAULO Feb 17 (Reuters) - The board of Usinas Siderúrgicas de Minas Gerais SA declined to discuss a proposal to inject fresh capital into the beleaguered Brazilian steelamker, as well as a plan to win some debt relief from banks, two sources with direct knowledge of the matter said on Wednesday.
Nippon Steel & Sumitomo Metal Corp, one of the company's two controlling shareholders, shunned discussing a proposal by management to ask banks for a so-called 180-day standstill agreement, saying it could hamper the position of another creditor, the Japan Bank for International Cooperation, said the sources, who requested anonymity because of the sensitivity of the issue.
The other controlling shareholder, Italy's Techint Group, asked that a proposal to inject capital into Usiminas was kept out of the board meeting that took place on Wednesday, the sources added. Representatives for Techint allege that no money can be pumped into the company unless Nippon Steel revives a shareholders accord that was broken when both firms clashed for control of Usiminas late in 2014.
A board meeting to discuss the same issues was scheduled for March 3, one of the sources said. Usiminas plans to unveil fourth-quarter results early on Thursday. (Reporting by Guillermo Parra-Bernal and Tatiana Bautzer; Additional reporting by Alberto Alerigi Jr)
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