Steel Mills
Mexican court orders sale of officially bankrupt AHMSA
Written by Laura Miller
November 13, 2024
After failing to reach agreements with its creditors, Altos Hornos de México (AHMSA) has been formally declared bankrupt by a Mexican bankruptcy court.
On Nov. 7, the Monclova, Coah.-based steelmaker announced its official bankruptcy declaration by Mexico’s Second District Court Specializing in Commercial Bankruptcy.
The court ordered the company to be turned over to a trustee and that the trustee move forward with selling AHMSA’s assets for as much money as possible in order to pay off creditors.
Local media outlets have reported that AHMSA’s debt totals between $1 billion and $5 billion owed to more than 1,700 creditors. It owes the most money to Mexico’s state-owned petroleum company Pemex (~$126 million), the country’s Federal Electricity Commission (unknown amount), and Cargill ($90 million), according to El Financiero.
AHMSA disclosed earlier this year that it was in talks with seven potential investors/steel companies.
The leader of Canacintra, a national chamber representing Mexico’s industrial sector, told local media that AHMSA will restart production mid-2025. Alejandro Loya Galaz believes the bankrupt steelmaker will be acquired by a company experienced in steelmaking. He said there are currently two companies interested in restarting operations, although it will have fewer employees than in the past.
As SMU has reported, the assets of the Mexican steelmaker and miner have reportedly fallen into a state of disrepair after the company ceased operations in December 2022.
Laura Miller
Read more from Laura MillerLatest in Steel Mills
Cliffs idles Steelton, Riverdale, and Conshohocken operations
Cliffs has idled facilities in Riverdale, Ill., and Conshohocken and Steelton, Pa.
Radius loss narrows, volumes climb in ‘healthy’ West Coast market
Stronger steel demand in the Western US, rising scrap flows, and improved rolling mill utilization drove sequential gains for Portland, Ore.-based Radius Recycling.
AISI: Raw steel production backs off multi-year high
US raw steel output edged lower last week after hitting a multi-year high in mid-June, according to the American Iron and Steel Institute (AISI).
Private equity firm Atlas Holdings to acquire Evraz North America
Atlas Holdings said it has signed a definitive agreement to acquire Evraz North America (Evraz NA). The Greenwich, Conn.-based private equity firm said it expects the deal for the Chicago-based steelmaker to close in the second quarter of 2025 subject to various closing condition.
Granite City Works must remain open and other terms of the Nippon-USS deal
SEC documents also name Trump specifically as having veto power certain decisions are part of the “Golden Share” provision.