Altos Hornos de Mexico (AHMSA), a Mexican steelmaker, is considering filing a Chapter 11 bankruptcy protection in the US to avoid paying the Mexican government.
By filing for bankruptcy in the US, AHMSA can reject payments agreed to by its chairman, Alonso Ancira, to settle corruption claims against him. The claims relate to AHMSA’s sale of a company to Pemex, Mexico’s state oil company, at an inflated price.
Ancira agreed to repay the Mexican government to avoid arrest. Jefferies Group LLC, an investment bank, will seek financing to keep the steelmaker operating during the bankruptcy process, according to sources. However, AHMSA has not officially denied or confirmed the move.
Original Article: https://yieh.com/en/NewsItem/129696
