DJ Argentina's Ternium: Venezuela Makes Overdue Sidor Payment >TX

DOW JONES NEWSWIRES

Argentine steel company Ternium SA (TX) on Wednesday said the Venezuelan government has belatedly paid $300 million towards its compulsory purchase in 2008 of the steel company's Venezuelan unit, Sidor.

A Venezuelan government holding company paid $158.2 million due under the first tranche, and a $142 million mandatory prepayment due under the second tranche, Ternium said in a statement.

Venezuela had failed to make a scheduled payment on Feb. 8 and also missed the grace period to pay the debt, which is part of the $1.97 billion that President Hugo Chavez agreed to pay for nationalizing Sidor, Venezuela's largest steel-mill.

Ternium owned 60% of Sidor, while the government owned 20% and workers controlled the remaining 20%. The government abruptly announced the seizure after management and unions were constantly locking horns over wages.

The unions played an active role in the seizure, persistently demanding the government take over the company.

-By Matthew Cowley, Dow Jones Newswires; +54 11 4103 6740; matthew.cowley@dowjones.com

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(END) Dow Jones Newswires

March 03, 2010 11:30 ET (16:30 GMT)

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