MONCLOVA, Mexico, May 26, 2016 /PRNewswire/ -- Altos Hornos de México S.A.B. de C.V. ("AHMSA" or the "Company"), the leading integrated steel producer in Mexico, today reported additional details related to the lifting of its suspension of payments proceeding. The suspension of payments was lifted on May 16, 2016 following approval of the Company's general payment agreement (the "Plan") by Judge Juan Carlos Carranza Leija of the First Civil Court of First Instance in the Judicial District of Monclova, Coahuila (the "SP Court").
The SP Court recognized claims of the amount of MXP 16,263,134,790.91 in the suspension of payments proceeding, all of which were converted into the non-transferable right to receive payment, in full, in pesos, three years from the date of lifting (the "SP Payment Rights").
In addition, creditors holding MXP 10,726,588,875.50 of recognized claims were deemed to have elected to have 69.15% of their SP Payment Rights exchanged for a combination of common shares in AHMSA and a payment in U.S. dollars. For each MXP 1,000,000 of SP Payment Rights exchanged, creditors will receive 15,303.85 common shares and US$2,735.55, subject to rounding and final reconciliations. The remaining 30.85% of the SP Payment Rights held by electing creditors remain outstanding following the exchange, to be paid in full, in pesos, three years from the date of lifting.
As a result of the recognition of claims and the exchange of SP Payment Rights for shares and cash exercised by various creditors, the following net amounts were issued upon the lifting of the suspension of payments, subject to rounding and final reconciliations:
- MXP 8,845,698,583.50 of SP Payment Rights
- 113,515,363 common shares (the "Election Shares")
- US$20,290,767.62 in cash (the "Election Cash")
The Election Cash is being deposited in a segregated, interest-bearing bank account and the Election Shares are being deposited with the Sindico for the benefit of the creditors who made valid elections. The Election Cash and the Election Shares will be distributed to the parties entitled thereto promptly following the expiration of the period for creditors to appeal the approval of the SP Court's order approving the Plan and the final resolution of any appeals filed during such period.
This press release does not constitute an offer to sell, or a solicitation of an offer to purchase, the securities described herein, in any jurisdiction, to or from any person to whom it is unlawful to make such offer or solicitation of an offer in such jurisdiction.
Altos Hornos de México S.A.B. de C.V., an integrated steel producer, has two steel plants located in Monclova, Coahuila, and operates its own iron and metallurgical coal mines. Its current nominal production capacity is more than 5 million tons of liquid steel per year, which is then transformed into diverse finished products. Additionally, AHMSA operates thermal coal mines in Mexico. It employs over 19,000 workers in steel plants, mines and services.
This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs about future events and financial, political, economic and social trends and assumptions it has made based on information currently available to it. AHMSA cannot assure that any expectations, forecasts or assumptions made by management in preparing these forward-looking statements will prove accurate, or that any projections will be realized. Actual results could differ materially from those projected in the forward-looking statements as a result of inaccurate assumptions or a number of risks and uncertainties. Forward-looking statements contained herein speak only as of the date of this release. AHMSA does not undertake any obligation to update or revise publicly any forward-looking statements, whether to reflect new information, future events or otherwise.
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SOURCE Altos Hornos de Mexico S.A.B. de C.V.