Two subsidiaries of Mexican integrated steelmaker Altos Hornos de Mexico (AHMSA) have filed for bankruptcy protection in Mexico, the equivalent of US Chapter 11.
AHMSA said in a document filing at Mexican stock exchange, Bolsa Mexicana de Valores (BMV), both Minera del Norto (Minosa) and Micare filed for bankruptcy protection. Minosa produces metallurgical coal to supply AHMSA’s steel needs, while Micare is a steam coal supplier.
The bankruptcy protection request, known in Mexico as “concurso mercantial,” will provisionally allow the two AHMSA subsidiaries to halt payments, so they can improve their cash flow and continue operating.
AHMSA said the two companies filed for a Chapter 11-equivalent bankruptcy protection plan as they faced liquidity problems, and also due to a change in the Mexican government energy policy, which resulted in “uncertainty” for the companies in the short term.