Mexican integrated steelmaker Altos Hornos de Mexico (AHMSA) has confirmed in a document filing at the local stock exchange, BMV, it plans to file for Chapter 11 in the US through a subsidiary.
AHMSA said late last week it intends to use its subsidiary, Minera del Norte SA de CV, to make such a filing. The move was labeled by media last week as an alternative for the company to avoid payments to the government, following a recent settlement to end corruption charges involving AHMSA’s chairman, Alonso Ancira.
AHMSA said late last week that about a third of Minera del Norte’s operations are in the US. It produces about 6.6 million mt/year of thermal coal.
The unit was hit by the decision of Mexico’s state-run utility Comision Federal de Electricidad (CFE) to cancel coal supply contracts for power stations, AHMSA said.