The former integrated steel giant Altos Hornos de México (AHMSA) acknowledged that its shareholders headed by Alonso Ancira Elizondo will lose the company because they did not reach a reconciliation with their creditors and therefore must hand over the company to the trustee for the sale of assets.
“According to legal regulations, the trustee must take possession of the administration and assets of AHMSA and will assume total control over the administrative and financial decisions necessary to advance in the liquidation phase,” the company reported in a press release.
The Second District Court for Commercial Bankruptcy declared AHMSA bankrupt on November 6, with which it began the process for the sale of assets to liquidate its creditors.
According to legal regulations, the trustee must take possession of the administration and assets of AHMSA and will assume full control over the administrative and financial decisions necessary to advance in the liquidation phase.
When the trustee takes control of the steel company, the following stages will begin; asset inventory, asset valuation, call for interested parties to buy the assets at auction and the asset auction.
The assets are sold to the highest bidder without labor liabilities or financial liabilities. The steel company with iron ore mines and a production capacity of 5.5 million metric tons (mt) of liquid steel per year recorded net liabilities of $5.78 billion, with assets of $2.1 billion at the end of 2022.