Summary:
As Mexico’s reformed Ley de Concurso Mercantiles (LCM) approaches its ninth year of effectiveness, the country’s legislature and judiciary continue to search for procedures that further the law’s stated objectives of corporate rescue. That search has led, most recently, to amendments to the LCM designed to implement and facilitate ‘pre-packaged’ reorganisations.
How will such reorganisations be treated in cross-border proceedings requiring recognition and other relief in US Bankruptcy Courts? The following article discusses very briefly the LCM’s amendments and, based on existing precedent involving other Latin American cross-border restructurings, offers some initial thoughts as to how US Courts might treat ‘prepackaged’ reorganisations commenced in Mexico.
This 2008 article is accessible here. Republished with kind permission of Chase Cambria Company (Publishing) Ltd.