AHMSA announces it will enter bankruptcy phase in Mexico

MEXICO - Altos Hornos de México (AHMSA) announced that it will enter the bankruptcy phase, after concluding the last extension of the conciliation stage in its insolvency proceedings.

The steel company explained in a press release that the bankruptcy declaration will be issued "at any time" by the head of the Second District Court, Ruth Haggi Huerta.

"In this new stage, the Federal Institute of Insolvency Specialists will appoint a trustee to take control of the company," said AHMSA.

The company explained that under the supervision of the conciliator Víctor Manuel Aguilera, a process is being carried out to attract interested groups, among which are seven potential investors, to capitalize AHMSA in order to resume operations "as soon as possible" in Monclova, Coahuila.

"If an agreement can be reached in the coming months, it will open up the possibility of reactivating the company and preserving the source of employment," the company said.

It should be recalled that in March of this year, Altos Hornos de México agreed with Petróleos Mexicanos (Pemex) to postpone its third payment of the preparatory agreement for the Agronitrogenados fertilizer plant.

AHMSA, which was headed by Alfonso Ancira, indicated that the new payment deadline would be November 30 of this year.