Ternium S.A. (NYSE: TX) announces that it did not receive the Sidor compensation payments required to be made yesterday by Corporacion Venezolana de Guayana, or CVG. These payments consist of a US$157.5 million principal installment, plus interest, due under the first tranche, and US$141.4 million mandatory prepayment, plus interest, due under the second tranche. The total balance of the Sidor compensation payments outstanding as of the date hereof amounts to US$1.02 billion, plus interest.
Under the May 7, 2009 agreements governing the transfer of Ternium's interest in Sidor to Venezuela, CVG has 15 days to cure any payment default under either tranche. Ternium has no indication that CVG will not pay the amounts currently owed to it in the coming days.
Forward-Looking Statements
Some of the statements contained in this press release are "forward-looking statements." Forward-looking statements are based on management's current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to gross domestic product, related market demand, global production capacity, tariffs, cyclicality in the industries that purchase steel products and other factors beyond Ternium's control.
