Expert administrators needed to reactivate production at AHMSA

Thursday, 15 February 2024 00:32:35 (GMT+3)   |   San Diego

To reactivate steel production and avoid the bankruptcy of the steel giant Altos Hornos de México (AHMSA), expert administrators are required, according to the adjudicator responsible for ensuring that the company reaches an agreement with its creditors in the judicial process of financial restructuring under the Commercial Bankruptcy Law.

The adjudicator “states that he does consider that AHMSA should be removed from the administration of the company, because he states that AHMSA needs the investors (Argentem Creek Partners) who are going to intervene in the financing of AHMSA to have the guarantee as soon as possible that the current Board of Directors, which apparently caused the bankruptcy of the company due to alleged negligence, leaves the administration," the bankruptcy judge reported on the adjudicator’s request.

“By removing the current administration of the company from their positions, the undersigned, by taking over the administration surrounded by a competent team of administrators and accountants, would be in charge of optimizing the company's resources in the best way and especially taking advantage of the current opportunity. that there are investors interested in investing in AHMSA and saving it from the imminent bankruptcy that is looming,” said the head of the Second District Court for Commercial Bankruptcy, in resolutions seen by SteelOrbis.

Sources of information directly related to the AHMSA restructuring process told SteelOrbis that it is the legal mechanism to follow for the Judge to allow the change of the Board of Directors, a fundamental step for investors led by the New York financial company Argentem Creek Partners, to complete the purchase process signed since last year with the largest shareholder of the steel company, Alonso Ancira Elizondo.

SteelOrbis recently reported that the federal government accepted the restructuring of more than $500 million owed to state companies such as the electric company CFE and the oil company Pemex. In addition to taxes to pay, among other debts.

Once the change in the Board of Directors has been completed, the company already has authorization from its shareholders to request a loan of $350 million to reactivate steel production, paralyzed since January 2023 due to the company's insolvency.

In this process, the union leader of AHMSA plant #1, Ismael Leija Escalante, general secretary of the Democratic Union, asked the President of the Republic, Andrés Manuel López Obrador, to support AHMSA as he did recently by forgiving the payment of almost $5.0 billion for taxes (Shared Profit Right, DUC) to be paid to Pemex in four months.

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