According to local media reports, Víctor Manuel Aguilera, the bankruptcy trustee of Mexican steelmaker Altos Hornos de México (AHMSA) and its subsidiary Minera del Norte (Minosa), has submitted a revised proposal for the sale of both companies as a single productive unit, following the annulment of the previous auction.
Auction failure linked to bidder non-compliance and creditor objections
The initial auction, scheduled for February 27, was cancelled after the sole qualified bidder - a consortium formed by Ignition Industries 1870 and Fintech Latam - failed to meet procedural requirements.
In addition, key creditors, including Banco Afirme and Cargill, did not approve the sale, as they hold loans backed by collateral tied to the assets of AHMSA and Minosa. These two creditors reportedly account for around 46 percent of the companies’ total recognized debt, equivalent to approximately MXN 45.17 billion.
Despite these obstacles, local media reports indicate that Mexican federal authorities have stepped in to facilitate negotiations with creditors in an effort to unblock the process.
Plan aims to preserve integrated operations
According to the trustee, the new proposal complies with bankruptcy regulations and seeks to avoid breaking up the companies’ assets. Instead, the plan prioritizes selling AHMSA and Minosa as an integrated production unit, which is seen as critical for preserving employment and supporting regional economic recovery.
However, uncertainty remains regarding creditor demands, particularly requests by secured lenders to exclude pledged assets from the sale structure. The final outcome will depend on the ruling of the presiding judge overseeing the bankruptcy proceedings.
Outlook hinges on court decision
The process is expected to advance once the court determines whether the revised proposal meets legal and financial requirements. If approved, detailed terms and conditions for the new auction will be disclosed to stakeholders.
Market participants and local industry representatives are closely monitoring developments, as a successful transaction could pave the way for restarting operations at AHMSA, which has remained idle for nearly three years.
