Mexican integrated steelmaker Altos Hornos de Mexico (AHMSA) is reportedly considering filing for Chapter 11 in the US to avoid payments to the Mexican government, a media report by the Wall Street Journal said this week.
The media report said that by filing for bankruptcy in the US, AHMSA could reject payments its chairman, Alonso Ancira, agreed to pay to end a corruption claims against him. The claims involve the sale of a company by AHMSA to Mexico’s state-run oil company Pemex at an overpriced value. As reported by SteelOrbis, Ancira agreed to pay back the Mexican government to avoid been arrested.
The media report said investment bank Jefferies Group LLC would be seeking financing to keep the steelmaker operating during the bankruptcy process, according to unnamed sources. AHMSA has not officially denied or confirmed the move.