AHMSA Declared Bankrupt; Sale Ordered to Satisfy Creditors

The Second District Court in Mexico City has declared Altos Hornos de México (AHMSA) bankrupt and ordered its sale to maximize value for creditors. The bankruptcy follows the failure of negotiations between AHMSA and its creditors from Aug. 19 to Nov. 5.

Ruth Huerta García, Second District Judge, Commercial Bankruptcy Cases, issued the bankruptcy order, noting that the company requires approximately US$900 million, of which at least US$650 million need to be allocated to cover debts with CFE, PEMEX, employees who have not been paid for over a year and seven months, and creditors. 

The government of Coahuila has pledged support for the 70,000 families who depended on AHMSA and the economy of Monclova, where the plant was located. "We will ensure that the labor rights of AHMSA employees are respected and that they receive the payments due to them. We also aim to ensure that, when conditions allow, they can regain their jobs."

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 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.