Creditors of Argentine integrated steelmaker Siderar have unanimously agreed to a refinancing of its US$110mn euro medium-term note (series 2), the company told Buenos Aires Stock Exchange.
The parties will now negotiate in good faith for an extension to the payment of the US$96.25mn due during this year and next.
The development follows the company only partially paying the principal and interest on the first quota.
Siderar, which describes itself as Argentina's largest steel company, had already scaled down its 2002 investment plans to a mere US$30mn because of the country's financial crisis. The money will be spent on reducing costs and improving quality.
A few days ago, Argentine long products steelmaker Acindar told BNamericas it had chosen Credit Suisse First Boston investment bank to help it restructure following a December declaration it was postponing principal and interest payments on some US$400mn worth of debt.
Acindar does not expect to meet a February 15 deadline to pay interest on a negotiable security, given Argentina's woes, company officials say. Sales in January were 45% of what they were same-month 2001.
Acindar is jointly controlled by Argentina's Acevedo family and Brazil's Belgo Mineira.