According to the court-appointed trustee overseeing the bankruptcy of Mexican steel mill Altos Hornos de México (AHMSA), the responsible court has authorized the outright sale of an iron ore pellet plant located in Indiana, United States, for $5 million.
The ruling applies to all equipment and machinery owned by AHMSA and located at a facility in the United States that previously operated with DR pellets had an annual production rate of approximately 2.2 million tons per year prior to commissioning and maintenance in 2016 and was designed for potential expansion to 3.0 million tons with limited additional capital costs.
The court approved the sale in favor of US mining company MagIron LLC, which submitted a binding offer of $5 million for the shipment of machinery and equipment. Subject to court-approved terms, the buyer assumes responsibility for all associated costs, including taxes, electricity, security, insurance and any outstanding costs associated with the site. In addition, the plant where the equipment is located has an outstanding lease debt of $1.05 million, which MagIron will assume upon completion of the transaction.
According to the court, the transaction complies with the legal obligation to maximize the value of the bankrupt's assets, since the final offer exceeds the original liquidation valuation by more than twice, with the liquidation valuation carried out by Hilco Valuation Services, sets the value at $2.24
