Brazil's Usiminas expects loan standstill on Thursday -paper

jueves 17 de marzo de 2016 07:27 GYT
 

BRASILIA, March 17 (Reuters) - Usinas Siderúrgicas de Minas Gerais SA expects to close on Thursday a loan standstill agreement with banks, in a move that should help the largest Brazilian producer of flat steel cope with fallout from a deep recession and a swelling debt burden, Valor newspaper said.

Valor said the agreement was a pre-condition for a 1 billion real ($267.64 million) capital increase approved by shareholders on Friday. A grace period would help the company avoid filing for bankruptcy protection.

Usiminas representatives did not immediately respond to a request for comment.

($1 = 3.7363 Brazilian reais) (Reporting by Silvio Cascione Editing by W Simon)