AHMSA bankruptcy leaves 70 thousand families without income

A commercial court yesterday declared the bankruptcy of Altos Hornos de México (AHMSA), which for more than three decades was the most important steel company in the country – on which some 70 thousand families depend – and the economic engine of the coal region of Coahuila, which closes a cycle in the steel industry in Mexico.

When an agreement was not reached with creditors in the bankruptcy process, Ruth Huerta García, second district judge of commercial bankruptcy, declared ex officio the bankruptcy of the company based in Monclova. This begins the liquidation process during which the payment must be covered to some 20 thousand direct workers, who stopped receiving their salaries for almost two years, and also to more than 1,600 creditors.

The steel company requires around 900 million dollars, of which at least 650 million should be allocated to face the debts it has with employees and creditors, among them the Federal Electricity Commission (CFE) and Petróleos Mexicanos (Pemex), while the The rest would be to reactivate its operations.

In a brief statement sent to the Mexican Stock Exchange, the company, whose majority partner was Alonso Ancira for decades, stated that reaffirms its commitment to collaborate fully during this process, to seek solutions that minimize the impact on all parties involved.

From the date the bankruptcy stage is issued, the law establishes five business days as the deadline for it to be published in the Official Gazette of the Federationand this implies that there would no longer be any stage of negotiation or restructuring and we proceed to seek to maximize the value of all the assets for sale.

For more than three decades AHMSA was the most important steel company in the country and one of the largest in Latin America, with the bankruptcy affecting more than 70 thousand workers – around 20 thousand direct and 50 thousand indirect – due to the closure of mines and other companies in the central and coal zone of Coahuila, which depended on the operations of a company that contributed around 8 percent of the state’s gross domestic product.

success story

AHMSA was founded in 1942 in Monclova, Coahuila, transforming an agricultural region into the steel capitalcontributing 15 percent of the metal manufactured in Mexico.

30 years ago, according to official data, the economy of the so-called coal zone (communities that produce coal for the production of steel) depended 90 percent on the company’s activities.

In 1991, former president Carlos Salinas de Gortari handed over the Mexican steel company for a fifth of its value to the owner of Grupo Acerero del Norte (GAN), Alonso Ancira.

Over the years, the region’s economic activity diversified; However, until the beginning of this decade, a third of the economy still depended on this company, so its cessation of operations at the beginning of 2023 brought with it a deep crisis.

AHMSA reached its highest production volume in 2016, with a total of 4.6 million tons of liquid steel; However, as a result of accusations of money laundering and corruption, its then president, Alonso Ancira, was arrested in Spain, beginning a series of financial difficulties that did not allow him to meet his financial and work obligations, to the extent that for In 2022, its steel production failed to exceed one million tons.

At its peak, the company had a peak of 22 thousand direct workers. However, in the region there are mines, workshops, suppliers, warehouses and all types of companies that make up a supply chain linked to Altos Hornos de México, resulting in a total of 70 thousand workers, which means that a large part of the population depended on the company.

The Ancira factor

Ancira, whom in February 2021 a federal judge based in the North Reclusorio linked to proceedings for the crime of money laundering, was accused of bribing the then director of Pemex, Emilio Lozoya, with $3.5 million to achieve the sale. of the Agronitrogenated fertilizer plant.

After being arrested in Spain and extradited to Mexico, in April of that same year, Ancira was released after agreeing to a reparation agreement of 218.6 million 664 thousand dollars for the damages caused to Pemex, which he would settle in four payments.

Ancira did not comply with the last payment of 12.6 million dollars agreed for November 2023; However, the company obtained an extension that would expire on November 30 of this year.

Since April 2023, the businessman is no longer part of the company, the new owner being the Argenteam Creek Partners fund, which injected $200 million; However, it needs new investments of 900 million dollars.

Promises to workers

In the face of bankruptcy, the government of Coahuila committed to supporting the workers and the economy of Monclova.

In a statement, he offered to closely monitor the ongoing legal process so that the labor rights of AHMSA employees are respected and that they receive the corresponding payments. Likewise, work will be done to ensure that, when conditions allow, they can recover their jobs.