MONCLOVA, Coahuila,
Sept. 30, 2016 /PRNewswire/
-- Altos Hornos de México S.A.B. de C.V. ("AHMSA" or the
"Company"), one of Mexico's
largest integrated steel producers, reported that the U.S. federal
court for the District of Delaware
(the "U.S. Court") today gave full force and effect in the U.S. to
the Company's general payment agreement (the "Restructuring Plan")
and the order of the Mexican Court approving the Restructuring Plan
(the "Lifting Order"). In recognizing the now final Lifting Order,
the U.S. Court ruled that AHMSA's assets situated in the U.S. are
immune from enforcement actions by Recognized Creditors with claims
in the SP Proceeding and further enjoined U.S. creditors with
claims in the SP Proceeding from seeking to enforce their claims
against those assets. The ruling by the U.S. Court also allows
AHMSA to invoke the jurisdiction of the U.S. Court to enforce the
prior relief granted by the Mexican Court.
In addition, AHMSA announced that the U.S. Court today (i)
recognized AHMSA's SP Proceeding as the foreign main proceeding
under chapter 15, (ii) recognized Mr. Francisco Xavier Gaxiola
Fernández as the foreign representative (the "Foreign
Representative"), and (iii) granted related relief on a final
basis.
No objections were filed by any creditors or parties-in-interest
to AHMSA's petition for chapter 15 protection and related relief,
which was previously filed on behalf of the Company by the Foreign
Representative. The U.S. Court ruling follows the acceptance of 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.
The Lifting Order and the conclusion of AHMSA's SP Proceeding is
a final, non-appealable matter, as the applicable appeals period in
Mexico expired without an appeal
having been filed and without creditor opposition. The chapter 15
process provided AHMSA with a centralized venue to address matters
related to its administration of the approved Restructuring Plan
and the enforcement of the Lifting Order in the U.S.
Recognition of AHMSA's SP Proceeding as the foreign main
proceeding by the U.S. Court gives full effect and force to the
Lifting Order in the U.S., facilitating the orderly implementation
of the approved Restructuring Plan. Additionally, the granting of
related relief by the U.S. Court enjoins all parties in the U.S.
from commencing or taking any action 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.
AHMSA stated: "Securing the recognition, protection and related
relief afforded by the U.S. chapter 15 process is the final step in
the implementation of AHMSA's restructuring process. We are excited
about the future prospects for AHMSA, given the positive trends in
Mexico's domestic energy and
manufacturing sectors, and look forward to enhancing our
competitive position as one of Mexico's largest integrated steel producers
with the sound capital structure developed through the
Restructuring Plan."
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.
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
madisen.obiedo@kekst.com / ross.lovern@kekst.com
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SOURCE Altos Hornos de Mexico S.A.B. de C.V.