Newsroom: Article

Emerging Market De(bt)velopments

According to new information from the courts handling the Suspension de Pagos of Mexican steelmaker Altos Hornos de México (Ahmsa), approximately four-fifths of all debts have been confirmed through final decisions and the remaining 20% are still pending resolution due to different appeals and ‘amparos’ filed by AHMSA. The courts, furthermore, indicated that once every judgment is considered final, it will still require between four and five months to coordinate the creditors’ meeting.
In May of 2006, the broad terms of a new possible creditors’ agreement were announced, offering the debt holders cash, new debt with maturities of up to 12 years and equity (with additional clauses related to future steel prices and company performance). Ahmsa recently suspended discussions with key creditors on a new creditors’ agreement, indicating that the creditors were requesting terms for the restructuring too far beyond these May 2006 terms.
The Ahmsa bonds have held up reasonably well during the turmoil in the high yield credit markets recently. Prior to the turmoil, the bonds were trading in the 75%-77% range, whereas they are currently quoted in the 66%-69% range.

Holders of Ahmsa trade debt are invited to contact us.

For brokerage requests or more information on specific debts, debt conversions and restructurings, please contact:
Omni Bridgeway Emerging Markets BV
Tobias Asserlaan 5, 2517 KC
The Hague, The Netherlands.
Tel: (+31) 70 3384343, Fax: (+31) 70 3523469
Raymond van Hulst on vanhulst@omnibridgeway.com
Heleen Rijkens on rijkens@omnibridgeway.com

Attached please find a sample of emerging market debt pricing. Please note that the included prices are sample prices. A copy of the latest prices can be obtained by sending your contact details to info@omnibridgeway.com.
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