EMTA Presents Panel on Mexican Bankruptcy
On June 13, 2011, EMTA hosted a panel discussion on Mexican Corporate Bankruptcy. This event was held at EMTA’s offices at 360 Madison Avenue in NYC.
It is now more than a decade that the modern law governing the Mexican insolvency regime— the Ley de Concursos Mercantiles (LCM, best translated as the Business Reorganization Act of 2000)—was enacted and has been successfully applied in hundreds of cases of corporate debt workouts. It incorporated most of the best international practices, and its main objectives have been to preserve and protect the rights of the various local and foreign constituencies typically involved in a Mexican insolvency proceeding, maximizing the value of company assets and their eventual distribution among creditors. However, the interpretation of the LCM is being put to the test by a potentially precedent-setting case involving Vitro, a leading glass manufacturer whose intra-company loans from subsidiaries have become a point of contention. This Panel presentation began with the highlights of a briefing paper written by Prof. Porzecanski, “Corporate Workouts in Mexico: The Good, the Bad, and the Ugly,” which was available for distribution to attendees.
Arturo Porzecanski (American University) moderated the panel discussion, and other panelists and their topics included:
Richard Cooper (Cleary Gottlieb Steen & Hamilton) – Making Money, not Headlines – How to Succeed in Mexican Restructurings
John Cunningham (White & Case) – Badges? We Don't Need No Stinking Badges
William Govier (Bingham McCutchen) – Opportunities for Improvement in the Concurso Law