AHMSA management receives shareholders support

AHMSA management receives shareholders support

The first ordinary general meeting after a three year interval, was held yesterday by shareholders of Mexican steel maker AHMSA, receiving support from the shareholders. No payment has been effected with regard to AHMSA's outstanding debt of $1.8 billion to the creditor banks since 1998, after receipt of a court order allowing repayment suspension. The creditor banks, not having been able to convince the current board to initiate repayments, were planning to hold a separate meeting later the same day. The creditor banks were aiming to use their voting rights to vote out the current board, declare the company bankrupt and go for a restructuring. But a court order also prohibited the creditor banks from voting. AHMSA reiterated its invitation to the creditor banks to negotiate repayment. The banks are considering their next move.