Mexico says making progress in talks to revive steel company AHMSA

MEXICO CITY, Nov 22 (Reuters) - Mexico is in constructive talks with a U.S fund overseeing the insolvency of steel company Altos Hornos de Mexico (AHMSA) in a bid to revive the company, President Andres Manuel Lopez Obrador said on Wednesday.

Grupo Acerero del Norte, which controls AHMSA AHMSA.MX , agreed in March to hand over its majority stake to a group of foreign investors for an initial $200 million, with the aim of attracting fresh resources and keeping it afloat.

Mexican media reported in April that New York-based Argentem Creek Partners were the new owners of AHMSA. Media later reported the fund had requested financing to revive the steel company's production and take it out of insolvency.

The Mexican president said in his daily press conference that "progress" was being made "to secure the rescue" with a U.S. fund that was "interested," without naming the fund.

Lopez Obrador added, however, that the government was not going to forgive the company's debts including to the state and its utility companies, previously reported to be in the region of 5 billion pesos ($291 million).

"When I talk about rescue it means that we provide facilities to renegotiate the debt that the company has with the government," he said.

Aside from AHMSA's precarious financial situation, its former president, Alonso Ancira, is facing litigation for links to Odebrecht, the Brazilian conglomerate which admitted to paying over $3 billion in bribes across Latin America.

AHMSA was accused of paying $3.7 million to a shell company allegedly set up by Odebrecht to pay bribes.

($1 = 17.2060 Mexican pesos)

(Reporting by Raul Cortés Fernández Editing by Marguerita Choy)

((Raul.CortesFernandez@thomsonreuters.com; +5579407905;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.