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Judge ratifies bankruptcy of Minosa, mining arm of AHMSA

Monday, 20 May 2024 09:16:46 (GMT+3)   |   San Diego
       

The federal judge leading the restructuring process of the mining arm of the steel giant Altos Hornos de México (AHMSA), Minera del Norte (Minosa), reiterated the state of bankruptcy for which the company's assets will be sold to settle debts with registered creditors.

“With this date, the bankruptcy status of the merchant Minera del Norte, SA de CV is declared (…) The bankruptcy stage is declared open,” the Second District Court for Commercial Bankruptcy decreed on May 6.

AHMSA considers “the resolution inadmissible and will present the corresponding legal resources to reverse said decision”.

However, this week the Court warned that "the means of challenge that concern us have been left without matter, if their grievances are founded, it would not be possible to issue a new ruling."

According to the law, if within a period of six months, the company's assets have not been sold, any interested person may present to the judge an offer to purchase some of the assets or together.

Minosa extracts iron ore in Mexico and metallurgical coal in Mexico and Texas. In January 2023, the company obtained legal protection (Commercial Bankruptcy) to try to restructure its debts with its creditors and is now declared bankrupt.

AHMSA had said that the restructuring of Minosa was essential for the restart of steel production that has been paralyzed since January 2023 due to insolvency.


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