The investors who agreed to purchase steel company Altos Hornos de México (AHMSA), paralyzed by insolvency since January of last year, took over the administration and board of directors of the steel company and its subsidiary Minera del Norte (Minosa), reported the federal judge who is conciliator of the company's financial restructuring process.
“On March 11 of this year, the conciliator was informed of the resignation of several members of the board of directors of Grupo Acerero del Norte, the controlling company of AHMSA and Minera del Norte, and their provisional replacement by new directors appointed by the group of investors who are interested in contributing fresh resources to get AHMSA up and running again,” said the Second District Court for Commercial Bankruptcy in a report today.
“The new management team began working and is taking the appropriate actions to update the accounting and financial information,” the court added.
The provisional replacement reported by the conciliator of the board of directors is because the judge maintains the prohibition of the change of the board of directors. The investors are led by the New York private investment fund manager Argentem Creek Partners.
Last month, the conciliator of the AHMSA restructuring process informed the judge that he signed an agreement to receive a loan to reactivate steel production in the company with a production capacity of 5.5 million metric tons.
He also reported that AHMSA like Mimosa presented a bankruptcy agreement to its creditors. If creditors approve it, companies will leave their liquidity crisis behind.