The Mexican steel giant Altos Hornos de México (AHMSA) obtained more than 91 percent approval from its creditors in the process of restructuring liabilities through the legal mechanism of Commercial Bankruptcy and for this reason the federal judge granted the second 90-day extension. However, its mining arm was declared bankrupt.
As stated in the Commercial Bankruptcy Law, the head of the Second District Court Specialized in Commercial Bankruptcy granted the extension for AHMSA. However, the same judge who is also handling the case of AHMSA's mining arm, Minera del Norte (Minosa), declared it bankrupt.
He revealed that the bankruptcy ruling was because that the company delivered the agreement with its creditors at the wrong time.
In a press release, AHMSA reported that "it considers the judge's resolution totally inadmissible and will resort to the corresponding legal remedies to reverse said decision and give full validity to the agreement, in order to proceed with the exit of Minosa from the Commercial Bankruptcy and resume operations".
AHMSA is an integrated steel company with its own iron ore extraction through Minosa. The company has a production capacity of 5.5 million metric tons of steel per year, producing blast furnaces and electric arc furnaces. In January 2023 it was paralyzed due to insolvency.