Article: AHMSA DEFAULT BRINGS CONCERNS THAT OTHER MEXICAN COMPANIES MIGHT FOLLOW SUIT.

The decision by troubled steel company Altos Hornos de Mexico (AHMSA) to suspend payments to creditors has raised some concern that other Mexican companies might take similar actions. AHMSA and its parent company Grupo Acerero del Norte (GAN) received bankruptcy protection from a federal court after defaulting on loan payments totaling more than US$63 million during April (see SourceMex, 1999-05-05).

Construction and engineering company Grupo Bufete had been rumored to be considering similar action, which raised concerns in Mexican and foreign financial markets in late May and early June. The rumors about Bufete came in part from the company's announcement that ...

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