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

Laura Miller is a reporter and editor for Steel Market Update. She has held a variety of positions within the steel industry since 2007, including reporting and editing for Steel Business Briefing/Platts, the Association for Iron and Steel Technology, and Kallanish Commodities, as well as marketing for what was then known as ThyssenKrupp Steel USA (now AM/NS Calvert). After a five-year hiatus working across other industries, she returned to steel in 2021 and has covered the flat rolled, tubular, and trade areas of the industry. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.

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