Integrated steelmaker Altos Hornos de Mexico (AHMSA) announced on Tuesday it has filed a petition with the US Bankruptcy Court so it can focus its financial resources on fulfilling the company’s obligations to creditors.
AHMSA’s move follows the creditors’ acceptance of the company’s restructuring plan and lifting of suspension of a payments proceeding by a Mexican court.
According to AHMSA, the petition seeks protection under chapter 15 of the US Bankruptcy Code in the US Bankruptcy Court for the District of Delaware.
The Mexican steelmaker informed that under Chapter 15 protection, it will now have a centralized US court process to “address matters related to the administration of the approved Restructuring Plan and the enforcement of the Lifting Order in the US.”
“Securing Chapter 15 protection will enhance AHMSA's ability to focus financial resources on fulfilling the company's obligations to creditors,” the company noted.
“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,” the company argued.
Chapter 15 of the US Bankruptcy Code facilitates cross-border insolvency proceedings by authorizing US Bankruptcy Courts to assist a representative of a foreign court in its administration of a foreign insolvency proceeding in the US, an AHMSA’s press release detailed.