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
Read more from Sandy WilliamsLatest in Steel Mills
Cliffs plans to idle three mills, cut 950 jobs on ‘insufficient demand and pricing’
Cleveland-Cliffs plans to indefinitely idle its steel mill in Riverdale, Ill., as well as mills in Conshohocken, Pa., and Steelton, Pa. The Cleveland-based steelmaker said all three facilities would be idled on or around June 30. Approximately 950 jobs will be impacted, the company said.
CRU: Usiminas may reduce capex unless government strengthens protection
“The lack of effective measures to create fair competition, amid a surge in subsidized imports, is the main threat to the sustainability of Brazil’s steel industry and its value chain,” CEO Marcelo Chara said.
USS swings to loss in first quarter on N. American flat-rolled segment woes
U.S. Steel CEO praised the company’s resilience, “despite the seasonally low results driven by annual mining logistics constraints in our North American Flat-Rolled segment and lagging spot prices.”
Nucor gives updates on new capacity coming online
Nucor said several of its capital projects will start operations within the next year and provided an update on them.
Algoma swings to loss on ‘market challenges’ and ‘tariff uncertainties’
Canada’s Algoma Steel swung to a loss in the first quarter amid "market challenges," and the company now expects first steel production from its first EAF in the second quarter.