Petition For Chapter 15 Protection Filed In The U.S. Bankruptcy Court For The District Of Delaware On Behalf Of Altos Hornos de México

MONCLOVA, Coahuila, Aug. 16, 2016 /PRNewswire/ -- Altos Hornos de México S.A.B. de C.V. ("AHMSA" or the "Company"), one of Mexico's largest integrated steel producers, today reported that its court approved foreign representative, Mr. Francisco Xavier Gaxiola Fernández, has filed a petition on behalf of the Company seeking protection under chapter 15 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware (the "U.S. Court").

The filing of AHMSA's chapter 15 petition follows the acceptance of the Company's general payment agreement (the "Restructuring Plan") by recognized creditors at its April 18, 2016 creditors meeting and the subsequent lifting of the Company's SP Proceeding approved by the Mexican Court through the Lifting Order issued on May 16, 2016. As the applicable appeals time period with respect to the Lifting Order in Mexico has expired without an appeal having been filed and without opposition of any of the creditors, the Lifting Order is now a final, non-appealable order. Under the chapter 15 process, the Company will have a centralized U.S. court process to address matters related to the administration of the approved Restructuring Plan and the enforcement of the Lifting Order in the U.S.

In its petition for chapter 15 protection, AHMSA requests that the U.S. Court recognize the SP Proceeding as the foreign main proceeding and give full effect and force in the U.S. to the Lifting Order, facilitating the orderly implementation of the approved Restructuring Plan. AHMSA's chapter 15 petition also asks that the U.S. Court enjoin all parties from commencing or taking any action in the U.S. to obtain possession of, exercise control over, or assert claims against AHMSA or its assets in the U.S. in contravention of the Restructuring Plan or the Lifting Order.

Securing chapter 15 protection will enhance AHMSA's ability to focus financial resources on fulfilling the Company's obligations to creditors—namely, the SP Payment Rights. Additionally, chapter 15 protection will enable AHMSA to progress as a viable and healthy business with the sound capital structure developed through the Restructuring Plan, building upon its competitive strengths as one of Mexico's largest integrated steel producers.

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.

Note for Global Editors: About Chapter 15

Chapter 15 of the U.S. Bankruptcy Code facilitates cross-border insolvency proceedings by authorizing U.S. Bankruptcy Courts to assist a representative of a foreign court in its administration of a foreign insolvency proceeding in the U.S. At its core, chapter 15 provides a U.S. Bankruptcy Court with the authority to recognize and enforce judgments and orders of foreign bankruptcy courts. Generally, chapter 15 provides for the fair and efficient administration of cross-border insolvencies to protect the interests of relevant parties, including the debtor and creditors.

About AHMSA

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.

Forward-Looking Statements

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.

Media Contact

Madisen Obiedo / Ross Lovern
Kekst
(212) 521-4961
[email protected] / [email protected]

SOURCE Altos Hornos de Mexico S.A.B. de C.V.