MEXICO CITY, Nov 7 (Reuters) - A Mexican judge has

declared local steelmaker Altos Hornos de Mexico (AHMSA)

is bankrupt, ruling that the firm will have to be

sold and those funds used to pay back debt, court documents

showed.

Aside from AHMSA's precarious financial situation, its

former president, Alonso Ancira, has faced litigation for links

to Odebrecht, the Brazilian conglomerate which admitted to

paying over $3 billion in bribes across Latin America.

AHMSA was accused of paying $3.7 million to a shell

company allegedly set up by Odebrecht to pay bribes.

The judge ruled that the "the highest possible" economic

resources be obtained in order to pay the creditors, according

to court documents made public on Thursday.