Posted on 01 Dec 2023
Altos Hornos de México (Ahmsa) continues to advance the process for the US-based Argentem Creek Partners (ACP) to take control of the company as the new majority shareholder and solve its insolvency, Kallanish notes.
The fund owned by Daniel Chapman is reported to have signed an agreement last week with the former owner Alonso Ancira Elizondo for departing from the administration of the company. This is an essential step to allow the restructuring of the company by the new investors according to the terms previously established with ACP.
Ancira has complied with ACP conditions and agreed to support the transaction process and not interfere with the restructuring of the company, representatives from the industry and politicians from the Coahuila de Zaragoza state told the media.
The agreement happened a few days after the visit by potential investors made up of the Kikapoo tribe, the Asia Pacific Royalties fund, China Steel and Cargill at Ahmsa’s facilities.
ACP and the Texas-Mexico Kickapoo Tribe have a binding agreement for an initial $200 million co-funding to unlock Ahmsa's operations. The Asian companies are evaluating investing another $350m, with the aim the steelmaker could restart all steel and mining production processes, guarantee supplies and payments to third parties, and solve pending accumulated energy bills and labour obligations in the first half of 2024.
In April, Ahmsa was declared bankrupt by Mexico’s Court of First Instance in Civil Matters of the Monclova state. The measure came after the company could not complete the $216.6 million reparatory payment for the sale of the Agro Nitrogenados fertilizer plant to state-owned oil company Petróleos Mexicanos (Pemex) in 2014 (see Kallanish passim).
Source:Kallanish
