The forthcoming bankruptcy of Interjet.

 On March 22nd, the CEO of Interjet (ABC aerolíneas, S.A. de C.V.) announced the imminent filing before a Mexican court of a petition in bankruptcy in the reorganization stage. Interjet is one of the top 5 airlines in Mexico.

The bankruptcy of an airline is the same as any other bankruptcy except for the following.

The debtor that, under a concession title, provides a federal, state, or municipal public service, may be adjudicated in bankruptcy.[1] Airlines fall within the said provision, because air transportation is a federal public service in Mexico.

In these special proceedings, the governmental agency that granted the concession constitutes another party in the proceeding. The granting agency in air transportation services is the Agency of Transport and Communication (Secretaría de Comunicaciones y Transportes), currently headed by Mr. Jorge Arganis Díaz-Leal.

As a party in the special proceeding, the granting agency appoints the insolvency officers,[2] decides whether the debtor will retain possession,[3] and can veto the reorganization plan.[4]

Hence, Interjet must enter negotiations not only with its creditors, but also with the granting authority to reach a reorganization plan.

For further info about bankruptcy law in Mexico, my work “Bankruptcy Law in Mexico”, written in English, can be accessed at https://works.bepress.com/francisco-rodrigueznepote/4/, where it can be downloaded freely. A complete translation of the legal text can be found there, as well.


[1] Article 237.- The debtor, who, under a concession title, provides a federal, state, or municipal public service, can be adjudicated in bankruptcy.

[2] Article 240.- The granting authority will propose to the judge everything related to the appointment, removal, and replacement of the reorganization officer and the liquidation officer, as well as to supervise their activities. When the special circumstances of the case justify it, the granting authority may establish a remuneration regime different from that provided for in article 333.

[3] Article 241.- Upon adjudication in bankruptcy, and at any time, the granting authority may resolve the removal of the debtor from the company and appoint a person to assume it, when it considers it necessary for the continuity and security in the rendering of the public service.

The granting authority will communicate its determination to the judge, who will promptly take all necessary measures so the person designated by the granting authority takes possession of the company. The occupation will be carried out under articles 180 to 182.

[4] Article 242.- Any plan proposed in terms of Title Fifth shall be notified to the granting authority, who may veto it within the term provided in article 162.

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