The US assets of Mexico’s integrated steelmaker Altos Hornos de Mexico (AHMSA) are currently immune from enforcement actions, following a relief the company achieved under the Chapter 15.
According to the steelmaker, the US federal court for the District of Delaware gave “full force and effect” in the US to the company’s general payment agreement and the order of the Mexican court approving the steelmaker’s restructuring plan.
“In recognizing the now final lifting order, the US Court ruled that AHMSA's assets situated in the US are immune from enforcement actions by recognized creditors with claims in the SP Proceeding and further enjoined US creditors with claims in the suspension of payments proceeding from seeking to enforce their claims against those assets,” the company said in a press release.
As a result of the final ruling, which had no opposition from creditors, AHMSA can now invoke the jurisdiction of the US court to enforce the prior relief granted by the Mexican court, it explained.
“No objections were filed by any creditors,” AHMSA said, adding the final ruling is “non-appealable,” as the applicable appeals period in Mexico expired without any appeal being filed and with no creditor opposition.
AHMSA said the decision makes it easier for the steelmaker to implement the approved restructuring plan.
"Securing the recognition, protection and related relief afforded by the US chapter 15 process is the final step in the implementation of AHMSA's restructuring process,” the steelmaker noted.
“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."