Mexico's retrogression: implications of a bankruptcy reorganization gone wrong

Arturo Porzecanski ()

MPRA Paper from University Library of Munich, Germany

Abstract: Mexico is retrogressing, becoming an unpredictable and risky jurisdiction for the adjudication of legitimate claims involving domestic and international lenders and investors. This conclusion follows from an analysis of the precedent-setting corporate workout involving a major Mexican multinational (Vitro) now winding its way through the Mexican courts. It raises serious doubts about the capacity of that country’s insolvency regime to deliver an outcome viewed as fair and consistent with prevailing norms and practices in the United States and other reputable jurisdictions. The case may well have a chilling effect on the easy access to foreign financing that Mexican corporations have enjoyed during recent years. The Vitro case has the potential to complicate even U.S.-Mexico diplomatic relations.

Keywords: Mexico; bankruptcy; insolvency; workout; Vitro (search for similar items in EconPapers)
JEL-codes: E44 F21 F34 G33 K22 N26 (search for similar items in EconPapers)
Date: 2011-11-14
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://mpra.ub.uni-muenchen.de/39670/1/MPRA_paper_39670.pdf revised version (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:35174

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