Entradas

ABENGOA MÉXICO: A TALE OF TWO PLANS.

Imagen
ABENGOA MÉXICO: A TALE OF TWO PLANS.   This tale commenced in June 2016, when a bank filed an involuntary petition in bankruptcy against Abengoa Mexico, S.A. de C.V., a publicly held company incorporated under Mexican laws. In December 2016, the adjudication in bankruptcy was issued, and the reorganization stage opened. In Mexico, a case will be closed if a reorganization plan is submitted and approved within a fixed period; if not, the case will be converted to the liquidation stage. Only allowed creditors can sign the plan, but to get a claim allowed, one must pass through the allowance of claims proceeding, which is often heavily contested multiparty litigation. In effect, in the allowance of claims proceeding, there could be at least three resolutions, the first instance, the appeal resolution, and the amparo (which is an extraordinary judicial recourse). In this tale, the first instance rule on the allowance of claims was issued in April 2017 and the appeal resolution in June 2020

What to expect from Aeromexico’s Chapter 11

What to expect from Aeromexico’s Chapter 11   Grupo Aeromexico, S.A.B. de C.V . (Aeroméxico), is a publicly held company incorporated under the Mexican laws. It has its establishment in Mexico and yet filed for bankruptcy in a US court. Probably Aeromexico wanted to get access to a more flexible and expedited bankruptcy, but at the end of the day, its bankruptcy story will be finished in Mexico. Under the Mexican Bankruptcy Law (LCM, for Ley de Concursos Mercantiles ), the bankruptcy proceeding that Aeromexico started in the US is a foreign proceeding (art. 279, LCM). If Aeromexico wants to replicate in Mexico its reorganization plan approved or the stays granted in the US, it will be necessary to open a bankruptcy proceeding in Mexico under the LCM, provided that it has an establishment in Mexico (art. 293, 306, LCM). The bankruptcy proceeding in Mexico will start at the reorganization stage, the process for allowing claims will commence again, and Aeromexico must submit a plan