AHMSA Advances Asset Valuation Amid Bankruptcy Process

Altos Hornos de México (AHMSA) has reported steady progress in the inventory and valuation of its assets, following the confirmation of its bankruptcy proceedings at the end of 2024. The company anticipates this phase will be completed within approximately two months.

AHMSA’s inventory and valuation process, conducted in strict adherence to relevant laws, seeks to guarantee the responsible management of the company’s resources while setting the stage for the next phases of the legal process, such as the asset auction.

"This phase is crucial, not only to accurately assess the condition of AHMSA’s assets but also to ensure that all stakeholders are treated fairly and equitably. We are committed to operating with full transparency and professionalism, adhering to deadlines, and providing clarity at every stage of the process," stated Victor Manuel Aguilera, Bankruptcy Trustee, IFECOM.

President Claudia Sheinbaum announced that her administration will soon present a plan for the nearly 20,000 workers owed payments by the steelmaker. She emphasized that her team has been working closely with the Ministries of Labor and Finance to review the situation and explore various solutions to restore employment. "This has been a lengthy process. As I stated in my 100 commitments, I pledged to address the AHMSA issue, and we are actively working to resolve it. We will deliver a plan of justice for the workers, ensuring that families receive the necessary support during this difficult time."

What Happened to AHMSA?

In 2019, Alonso Ancira, the company’s president at the time, was arrested in Spain following an investigation into bribes to PEMEX officials to overcharge for a fertilizer plant sale in northern Mexico. Part of the illicit proceeds were transferred to Odebrecht accounts. Following Ancira's arrest, CFE canceled several contracts with AHMSA. The administration of President López Obrador later reached an agreement with Ancira to return US$200 million dollars: the estimated overcharge from the fertilizer plant sale to PEMEX.

On Nov. 30, 2023, AHMSA ceased steel production and has, since then, been unable to resume operations. Earlier in 2024, Grupo Acerero del Norte reached an agreement to sell a majority stake in AHMSA to a group of foreign investors for US$200 million. This transaction is part of a financial restructuring plan designed to address the company's bankruptcy and enable its recovery.