According to the court-appointed trustee overseeing the bankruptcy process of Mexican steelmaker Altos Hornos de México (AHMSA), the court in charge has authorized the direct sale of the iron ore pelletizing plant located in Indiana, United States, for $5 million.
The ruling concerns all equipment and machinery owned by AHMSA and located at the US-based facility that previously operated at an annualized run-rate of approximately 2.2 million mt DR grade pellet production per year before being put into care and maintenance in 2016 and had been designed for a potential expansion to 3.0 million mt with limited additional capital expenditure.
The court approved the sale in favor of US-based miner MagIron LLC, which submitted a binding offer of $5 million for the machinery and equipment lot. Under the terms approved by the court, the buyer will assume responsibility for all associated costs, including taxes, electricity, security, insurance, and any outstanding site-related expenses. In addition, the plant where the equipment is located carries an outstanding lease debt of $1.05 million, which MagIron will absorb upon completion of the transaction.
According to the court, the transaction aligns with the legal obligation to maximize value for the bankruptcy estate, as the final offer exceeds the original liquidation appraisal by more than double, with the liquidation appraisal carried out by Hilco Valuation Services establishing a value of $2.24 million for the assets.
The trustee Victor Manuel Aguilera Gómez stated that the sale of the US-based equipment represents one of the most significant liquidity-generating actions undertaken so far, as additional labor-related rulings and financial requirements continue to accumulate for the steelmaker.
MagIron, on the other hand, expressed that the acquisition will allow MagIron to not only restart pellet production relatively quickly, but also to pursue the development of the US’ first integrated merchant pig iron producer and build an entirely domestic supply chain.