Mexican integrated steelmaker Altos Hornos de Mexico (AHMSA) will reportedly pay several suppliers after defaulting on payments, a media report from Vanguardia said.
According to media reports, AHMSA owns between MXN 300 to MXN 400 million ($12.5-16.7 million) to suppliers, and it had defaulted payments recently. The media report said AHMSA will pay MXN 8 million ($335,490) for those suppliers which have been waiting for about a year.
A local union contested AHMSA’s decision, saying the payment won’t even cover the costs for companies that are still supplying AHMSA.
There had been rumors earlier this year that AHMSA could complete a M&A transaction by March, but then the Covid-19 outbreak hit the markets.
Earlier this year, board president Alonso Ancira was re-appointed to “continue negotiations with companies interested in the acquisition (of AHMSA assets), a joint venture or any transaction that would improve AHMSA’s financial profile,” according to a document filing obtained by SteelOrbis.