Ahmsa resumes production

Mexico's Ahmsa is nearing restarting production as US-based Argentem Creek Partners (ACP) takes control as the new majority shareholder and solves its insolvency. The fund, owned by Daniel Chapman, has signed an agreement with former owner Alonso Ancira Elizondo to leave the company's administration, allowing restructuring by new investors. Ancira has complied with ACP conditions and agreed to support the transaction process without interfering with the restructuring.

The agreement came after potential investors visited Ahmsa's facilities. ACP and the Texas-Mexico Kickapoo Tribe have agreed to an initial $200 million co-funding to unlock Ahmsa's operations. Asian companies are also evaluating investing another $350m to restart all steel and mining production processes, guarantee supplies and payments to third parties, and solve pending energy bills and labor obligations in the first half of 2024. Ahmsa was declared bankrupt in April after failing to complete a $216.6 million reparatory payment for the sale of the Agro Nitrogenados fertilizer plant to Petróleos Mexicanos in 2014.