AHMSA’s Bid for Revival Amidst Turmoil

Altos Hornos de Mexico, currently non-operational, seeks debt payment arrangements and requests an electricity supply safeguard
AHMSA
AHMSAImage Source: Prewave

Synopsis:

Altos Hornos de Mexico, currently non-operational, seeks debt payment arrangements and requests an electricity supply safeguard from the Federal Electricity Commission. Negotiating with potential investors, including Chinese and American interests, AHMSA aims for a capital infusion to restart its steel operations, marked by a halted shareholder meeting and plans for a $350 million loan.

 

Article:

Altos Hornos de Mexico (AHMSA), presently non-producing due to insolvency, has made urgent pleas to the Federal Electricity Commission (CFE) through a federal judge overseeing its bankruptcy case. AHMSA seeks structured debt repayment and a bar on power supply disruptions amid ongoing negotiations with potential investors aiming to infuse capital and resume ordinary operations.

Judicial records from the Second District Court for Commercial Bankruptcies reveal AHMSA’s plea for the CFE to refrain from cutting off energy supply as new investors engage in negotiations to inject fresh capital into the company. AHMSA emphasizes the criticality of maintaining electricity supply to prevent irreversible damage to its assets.

AHMSA, possessing an annual steel production capacity of 5.5 million metric tons, is actively engaging with a consortium of Chinese and American investors led by New York-based fund manager Argentem Creek Partners.

Despite plans for a crucial shareholder meeting on December 21 aimed at finalizing a controlling stake sale, the gathering was canceled by the judge overseeing the bankruptcy proceedings. However, discussions during this meeting pointed towards a potential $350 million loan to facilitate the reactivation of production, indicating AHMSA’s determined efforts to rejuvenate its operations.

Conclusion:

AHMSA's ongoing negotiations with potential investors, coupled with its fervent appeals for a structured debt repayment plan and a safeguard against power supply disruptions, reflect its ardent bid for revival. Despite setbacks, such as the halted shareholder meeting, AHMSA remains resolute, signaling its aspirations for a fresh start and the revival of its steel production.

logo
SteelGuru Business News
www.steelguru.com