July 13, 2016 / 8:42 PM / 2 years ago

Brazil's Usiminas, banks in talks to extend loan standstill -sources

SAO PAULO, July 13 (Reuters) - Usinas Siderúrgicas de Minas Gerais SA has reached out to banks to extend a 120-day standstill agreement on 4 billion reais ($1.22 billion) worth of loans that is due this month, as Brazil’s largest listed flat steelmaker struggles to protect cash, two sources with knowledge of the plan said on Wednesday.

Usiminas, as the company is known, has contacted Itaú Unibanco Holding SA, Banco Bradesco SA and state-controlled lenders Banco do Brasil SA and BNDES to stretch out the deadline for the current agreement of at least 30 days, said the sources, who requested anonymity because the plan is underway.

Usiminas, Banco do Brasil and Bradesco declined to comment. Itaú and BNDES did not have an immediate comment.

Reuters first reported in February that banks and Usiminas were discussing terms of a loan refinancing.

$1 = 3.2890 Brazilian reais Reporting by Guillermo Parra-Bernal; Additional reporting by Alberto Alerigi Jr in São Paulo; Editing by Sandra Maler

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