AHMSA Initiates Lifting of Bankruptcy Suspension of Payments Process
12/24/2014 - Altos Hornos de México S.A.B. de C.V. (AHMSA) made a filing in the Civil Court of First Instance for the Judicial District of Monclova, Coahuila, United Mexican States to initiate the lifting of its suspension of payments.
The filing is supported by a general payment agreement signed by the required majority of its creditors, including diverse suppliers and financial institutions.
The agreement provides for the payment in pesos — in accordance with the Bankruptcy and Suspension of Payments Law — of 100% of creditors’ recognized claims of US$1.7 billion within three years of the lifting of the suspension of payments. The agreement also provides for eligible creditors to capitalize a portion of their debt for common shares of AHMSA.
The law establishes that the court in charge of the proceedings will officially call a general meeting of creditors at which the creditors will accept the general payment agreement to then initiate the legal lifting process.
The suspension has enabled AHMSA to return to financial health, sustain its industrial operations, preserve a source of 23,000 essential jobs for the economy of Mexico, and maintain its position as a highly competitive steel producer in the domestic and international markets.
Under the Bankruptcy and Suspension of Payments Law, the annual production of AHMSA was 3.4 million tons of liquid steel. With investments — mainly in the Fénix Project — AHMSA added equipment and technology to achieve production of over 4.3 million tons, with specialized steel of higher aggregate value.
With a solid financial structure and a strengthened industrial plant, AHMSA today is the leading steel producer in Mexico, able to respond to new demand resulting from Mexico’s development and to actively participate in global commerce.
AHMSA is an integrated steel producer that operates its own iron and metallurgical coal mines —its principal business segments—and has two steel plants located in Monclova, Coahuila. Its current nominal production capacity is 5.5 million tons of liquid steel per year, which is then transformed into diverse finished products. Additionally, AHMSA operates thermal coal mines in Mexico dedicated to the production of electric energy. It employs 23,000 workers in steel plants, mines and services.
The agreement provides for the payment in pesos — in accordance with the Bankruptcy and Suspension of Payments Law — of 100% of creditors’ recognized claims of US$1.7 billion within three years of the lifting of the suspension of payments. The agreement also provides for eligible creditors to capitalize a portion of their debt for common shares of AHMSA.
The law establishes that the court in charge of the proceedings will officially call a general meeting of creditors at which the creditors will accept the general payment agreement to then initiate the legal lifting process.
The suspension has enabled AHMSA to return to financial health, sustain its industrial operations, preserve a source of 23,000 essential jobs for the economy of Mexico, and maintain its position as a highly competitive steel producer in the domestic and international markets.
Under the Bankruptcy and Suspension of Payments Law, the annual production of AHMSA was 3.4 million tons of liquid steel. With investments — mainly in the Fénix Project — AHMSA added equipment and technology to achieve production of over 4.3 million tons, with specialized steel of higher aggregate value.
With a solid financial structure and a strengthened industrial plant, AHMSA today is the leading steel producer in Mexico, able to respond to new demand resulting from Mexico’s development and to actively participate in global commerce.
AHMSA is an integrated steel producer that operates its own iron and metallurgical coal mines —its principal business segments—and has two steel plants located in Monclova, Coahuila. Its current nominal production capacity is 5.5 million tons of liquid steel per year, which is then transformed into diverse finished products. Additionally, AHMSA operates thermal coal mines in Mexico dedicated to the production of electric energy. It employs 23,000 workers in steel plants, mines and services.
