Business · Companies · 7 hrs ago
AHMSA Sale Process Stalls After Required Guarantee Is Not Paid
The trustee said no bidder paid the required guarantee for the sale of Mexican steelmaker AHMSA and its subsidiary MINOSA.
The deadline for the $56.3 million guarantee passed on October 13, according to the official overseeing the bankruptcy process.
CIESA said it had paid, but the trustee said the required amount was not received from the company or any other prequalified bidder.
The dispute has added uncertainty for workers and former workers, who have been waiting four years for results, according to their leader.
Creditors Cargill and Afirme have proposed forming a consortium to bid for the companies.
AHMSA workers plan to travel to Mexico City to seek answers, while the trustee says interested parties should follow official channels and await court decisions.
The trustee overseeing AHMSA and MINOSA’s bankruptcy process said no prequalified bidder paid the required $56.3 million guarantee by the deadline.
CIESA had said it paid the guarantee, but the trustee said the amount was not received.
The trustee said CIESA had failed to meet the terms set at the September 25 auction hearing.
Secured creditors Cargill and Afirme have proposed forming a consortium to bid for the companies.
A representative of AHMSA’s former workers called CIESA’s statement false and said workers would seek explanations in Mexico City.
- Who
- The trustee for AHMSA and MINOSA, CIESA, and the companies’ former workers are involved.
- What
- The trustee said no prequalified bidder paid the $56.3 million seriousness guarantee, despite CIESA saying it had paid.
- When
- The payment deadline ended on October 13; the trustee made the announcement on October 14.
- Where
- The companies are in Mexico. Former workers said they would travel to Mexico City to seek explanations.
- Why
- Not stated
The AHMSA and MINOSA bankruptcy trustee
CIESA
Guarantee payment
The AHMSA and MINOSA bankruptcy trustee
The trustee said no prequalified bidder, including CIESA, paid the required $56.3 million by the deadline.
CIESA
CIESA said it had paid the guarantee.
Status of CIESA’s statement
The AHMSA and MINOSA bankruptcy trustee
The trustee said the guarantee had not been covered and that CIESA failed to meet the auction terms.
CIESA
CIESA’s representative said the payment was completed and described it as an advance for the recovery project.
The auction hearing for AHMSA and MINOSA took place at the Federal Judiciary.
The deadline to provide the $56.3 million guarantee ended without any prequalified bidder paying it, according to the trustee.
The trustee said the guarantee had not been paid, after CIESA claimed it had completed the payment.
- Guarantee
- $56.3 million
- Payment deadline
- October 13
- Trustee announcement
- October 14
- Auction hearing
- September 25
- Proposed alternative
- Secured creditors Cargill and Afirme sought to form a consortium to bid for AHMSA and MINOSA
What people are saying
The deadline granted by the Second District Court in Commercial Insolvency Matters to present the seriousness guarantee of 56.3 million dollars ended on October 13, without any of the prequalified bidders, including Construcciones e Ingenierías Electromecánicas, S.A. de C.V. (CIESA), having paid the required amount
This step represents a fundamental advance to ensure continuity of the AHMSA and MINOSA recovery project, with the firm conviction that workers and their families must be the first priority
That CIESA statement contains completely false information. I do not understand why Arturo Domínguez’s company is publishing all those lies. We need clarity because we have been waiting for results for four years