AHMSA auction faces legal scrutiny after bidder fails to provide guarantees

The bankruptcy auction for the steel company Altos Hornos de México (AHMSA) has faced significant legal and political scrutiny. Federal Judge Ruth Huerta has filed a criminal complaint with the Fiscalía General de la República (FGR) against José Arturo Domínguez Arteaga, owner of Construcciones e Ingenierías Electromecánicas (CIESA). Domínguez, the sole qualified bidder who offered $1.4 billion, is accused of potential false statements after depositing only 5,000 pesos instead of the required $56.3 million seriousness guarantee.

Federal Deputy Theo Kalionchiz has criticized the process, warning that the sale must not become a simulation that shifts all responsibility onto private entrepreneurs while the Federal Government avoids accountability for the uncertainty facing thousands of workers. Kalionchiz raised concerns regarding CIESA’s financial capacity, noting the company reportedly has a social capital of only 60,000 pesos and failed to identify the sources for its $1.4 billion bid.

Following the failure of the qualified bidders to provide the necessary guarantees, Judge Huerta has opened a 90-day period to negotiate with a consortium of AHMSA’s main creditors, including Banco Afirme and the U.S. agricultural giant Cargill.