Aug. 17, 2016
AHMSA Files for Chapter 15
Altos Hornos de México S.A.B. de C.V, one of Mexico's largest integrated steel producers, has filed a petition seeking protection under Chapter 15 of the U.S. Bankruptcy Code. Chapter 15 gives a U.S. court the authority to recognize and enforce orders of foreign bankruptcy courts to ensure fair and efficient administration of cross-border insolvencies.
AHMSA's Chapter 15 petition follows the acceptance of the company's general payment agreement by recognized creditors April 18 and the subsequent approvals by the Mexican court.
AHMSA's Chapter 15 petition asks that the U.S. court enjoin all parties from taking any action in the U.S. to assert claims against the Mexican steelmaker or its assets in the U.S. Securing Chapter 15 protection will enhance AHMSA's ability to restructure and meet its obligations to creditors, the company said.
AHMSA has two steel plants located in Monclova, Coahuila, and operates its own iron and metallurgical coal mines. Its current production capacity is more than 5 million tons of liquid steel per year. It employs over 19,000 workers in steel plants, mines and services.