Steel Mills
Solution to AHMSA Woes in Hands of Mexican Govt: Local Report
June 15, 2023
The solution to the dilemmas faced by Altos Hornos de México (AHMSA) is in the hands of the federal government, a spokesman for the Mexican steelmaker told a local news outlet.
AHMSA spokesman Francisco Orduña was responding to comments last Friday by Mexican President Andrés Manuel López Obrador regarding restructuring the company’s debt, according to an article in El Periódico La Voz on Friday, June 9.
He claimed in the article that Obrador “originated the problem four years ago.”
In 2019, the Mexican government under Obrador froze AHMSA’s bank accounts amid a corruption probe. The steelmaker claimed they were “improperly frozen,” according to a Reuters article at the time.
Orduña told La Voz that the new shareholders are already there and they “expect the government to fulfill its part.”
He said this includes plans to reactivate PEMEX gas, maintain electricity, form payment plans for accumulated debts with entities of the government, release blocked accounts, and “withdraw false accusations so that the new administration can access financing channels,” according to the article.
Recall that AHMSA announced an agreement in late-February to sell the majority of its shares to a group of foreign investors to recapitalize the company, with the shareholder later named as emerging markets credit specialist firm Argentem Creek Partners. However, some uncertainty remains around the sale.
An SMU email to Orduña was not immediately responded to by time of publication.
By Ethan Bernard, ethan@steelmarketupdate.com
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