Brazilian steelmaker Usinas Siderurgicas de Minas Gerais SA said in a securities filing on Friday that shareholders of subsidiary Mineração Usiminas SA, or MUSA, had approved a 1 billion reais ($321 million) capital reduction for the division.

Usiminas has been trying for months to tap excess cash from MUSA to comply with a debt refinancing accord with banks. The initiative was rejected in January by MUSA shareholder Sumitomo Corp. Reuters reported on Jan. 13 that the capital reduction would not affect the unit's finances.