A few days after receiving part of the $200 million in working capital to reactivate steel production at idled steelmaker Altos Hornos de México (AHMSA), the company reported litigation by its creditors demanding payment of the debt in the courts.
“In an irregular attempt, outsiders (creditors) have sought that AHMSA, declared bankruptcy with an earlier date, be attached to the subsequent (Commercial) Bankruptcy of Minera del Norte, which is legally inadmissible and is being challenged by the company in the corresponding instances”, reported the company in a statement sent to the financial markets.
In the northern state of Coahuila, AHMSA took refuge in the legal protection of suspension of payments 24 years ago, in May 1999, through the Bankruptcy and Suspension of Payments Law, a law repealed 23 years ago. In May 2000, the Commercial Bankruptcy Law entered into force.
After 17 years of not paying its creditors, in 2016, a judge accepted the payment agreement accepted between the company and creditors. However, it was not fulfilled and on January 30, 2023 (AHMSA) was declared in bankruptcy proceedings.
With the repealed law, AHMSA evades the payment of the new creditors contracted from May 2000 (entry into force of the new law).
According to the press release, some creditors are trying to have AHMSA declared in the restructuring process with the new Commercial Bankruptcy Law. This request from the "new creditors" was received and accepted by a specialized court in Mexico City from the first days of May.
With the known public data, as of September 2022, AHMSA has total liabilities of $3.18 billion and total assets of $2.46 billion. Currently the company has been paralyzed for six months due to lack of resources. With no steel production, payments to workers have been suspended.
In addition to AHMSA, its Minera del Norte unit (Minosa) was declared bankrupt (with current law) in the first week of March.