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Judge guidelines Mexican steelmaker AHMSA is bankrupt

A Mexican judge has stated local steelmaker Altos Hornos de Mexico is bankrupt, ruling that the firm will need to be offered and those funds utilized to pay back debt, following years of crisis connected to corruption allegations, court files revealed on Thursday revealed.

Its previous president, Alonso Ancira, was detained in Spain in 2019 in connection with an examination into paying kickbacks to authorities at Mexico's state energy company Pemex in order to offer a fertilizer plant at an inflated cost.

According to the court judgment, the personal bankruptcy was stated after the due date for a resolution in between AHMSA and its lenders ended on Nov. 5 without reaching any agreement.

AHMSA was accused of paying $3.7 million in bribes to a. shell business apparently established by Odebrecht, the Brazilian. conglomerate which admitted to paying over $3 billion in allurements. across Latin America.

After Ancira's arrest, Mexico's state-owned electricity. business CFE canceled a number of supply contracts with AHMSA. The. federal government of former President Andres Manuel Lopez Obrador later. made an agreement with Ancira for the compensation of $200. million to Pemex over the fertilizer plant sale.

The judge ruled that the the greatest possible economic. resources be acquired in order to pay the lenders, according. to court files made public on Thursday.

Established in 1942 in Mexico's northern Coahuila state, AHMSA. was one of the most crucial steel companies in Latin America,. however its operations have been suspended for several years due to. monetary problems, impacting around 20,000 employees.

(source: Reuters)