The largest steelmaker in Mexico Altos Hornos de Mexico (AHMSA) will enter bankruptcy procedure after an agreement was not reached between the company and its creditors.

According to a note sent by AHMSA to the Mexican Stock Exchange, the current administration of AHMSA is carrying out an active process to attract both national and foreign groups interested in capitalizing on the company.

The company added that two potential investors have already carried out due diligence visits and more are anticipated in the coming weeks to evaluate the status of the assets and determine the viability of the operation.

The company explained that active conversations have been held with seven potential investors and steel companies, who would be willing to capitalize on the company to reactivate steel production.

AHMSA needs at least US$900 million of investment to reactivate operations and pay the debt it has with Pemex, the Federal Electricity Commission, creditors, and workers.