Mexican steelmaker Altos Hornos de Mexico (AHMSA) reported on Thursday additional details regarding the lifting of the payment suspension.
AHMSA explained the First Civil Court of First Instance in the Judicial District of Monclova, Coahuila, also known as the SP Court “recognized” claims of MXN 16.2 billion in the suspension of payments proceeding.
According to AHMSA, the amount was converted into the “non-transferable right to receive payment, in full, in pesos, three years from the date of lifting.”
“In addition, creditors holding MXN 10,726,588,875.50 of recognized claims were deemed to have elected to have 69.15 percent of their SP Payment Rights exchanged for a combination of common shares in AHMSA and a payment in US dollars,” it said, adding that for each MXN 1,000,000 of SP Payment Rights exchanged, creditors will receive MXN 15,303.85 in common shares and US$2,735.55, subject to rounding and final reconciliations.
As a result, the remaining 30.85 percent of the SP Payment Rights held by electing creditors remain outstanding following the exchange, to be paid in full, in Mexican pesos, three years from the date of lifting.
AHMSA indicated the following net amounts were issued upon the lifting of the suspension of payments, subject to rounding and final reconciliations due to the recognition of claims and the exchange of SP Payment Rights for shares and cash exercised by various creditors:
MXN 8,845,698,583.50 of SP Payment Rights; 113,515,363 common and $20,290,767.62 in cash.
Additionally, Mexico’s largest integrated steelmaker explained 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.”
As for the election cash and the election shares, it noted those will be distributed “to the parties entitled 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.”