Steel Mills
AHMSA to Repay $1.7 Billion in Debt
Written by Sandy Williams
December 19, 2014
Mexican steelmaker Altos Hornos de Mexico SAB de CV (AHMSA) has agreed to repay $1.7 billion in debt owed to creditors. The agreement lifts a 15 year suspension of payments that was granted in 1999 after AHMSA failed to meet financial requirements related to debts of $1.90 billion.
The suspension allowed AHMSA time to restructure and strengthen finances rather than selling off assets through bankruptcy proceedings. Under the new agreement AHMSA will pay off 100 percent of its debt in pesos within three years. Creditors will be able to reclaim part of the money owed through AHMSA shares.
A meeting of creditors will be called by the Coahuila state civil court to confirm their acceptance of the deal and lift the suspension, said AHMSA.
AHMSA crude steel production has grown to 4.30 million tons annually from 3.40 million tons during the period of the suspension. The $2.3 billion Phoenix expansion project is expected to increase production to 5.0 million tons in 2015. (Source: AHMSA)
Sandy Williams
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