Javier Garbay talks with Reorg's Maria Abreu about the challenges of restructuring Mexican companies with bonds under U.S. law and commercial bankruptcy in Mexico.
This episode of Reorg Radio features Javier Garibay from Meyer Brown, discussing the challenges faced by Mexican companies with U.S.-law-governed bonds during bankruptcy.
The conversation explores cross-border insolvency, differences between Mexican and U.S. bankruptcy systems, and strategies to protect bondholders’ interests.International bondholders face difficulties in individualizing their claims due to complex documentation and limited access to information.
Additionally, collective representation through indenture trustees can complicate the approval of restructuring plans. In Mexico, bankruptcy proceedings rely on consensus rather than formal voting, making agreements more challenging.The restructuring hierarchy prioritizes state claims, followed by secured, labor, tax, unsecured, and subordinated claims.
Recognizing foreign insolvency requires a separate proceeding, which can cause delays. Pre-pack bankruptcies are rare due to the extensive coordination required with creditors. To strengthen the legal framework, experts suggest improving debtor-in-possession financing regulations, streamlining distressed M&A, and aligning with international standards.If you want to learn more about these financial challenges and opportunities, don’t miss this episode of Reorg Radio.
Javier Garibay provides key insights for investors, lawyers, and anyone interested in cross-border insolvency. Listen now! 🎧
This episode of Reorg Radio features Javier Garibay from Meyer Brown, discussing the challenges faced by Mexican companies with U.S.-law-governed bonds during bankruptcy.
The conversation explores cross-border insolvency, differences between Mexican and U.S. bankruptcy systems, and strategies to protect bondholders’ interests.International bondholders face difficulties in individualizing their claims due to complex documentation and limited access to information.
Additionally, collective representation through indenture trustees can complicate the approval of restructuring plans. In Mexico, bankruptcy proceedings rely on consensus rather than formal voting, making agreements more challenging.The restructuring hierarchy prioritizes state claims, followed by secured, labor, tax, unsecured, and subordinated claims.
Recognizing foreign insolvency requires a separate proceeding, which can cause delays. Pre-pack bankruptcies are rare due to the extensive coordination required with creditors. To strengthen the legal framework, experts suggest improving debtor-in-possession financing regulations, streamlining distressed M&A, and aligning with international standards.If you want to learn more about these financial challenges and opportunities, don’t miss this episode of Reorg Radio.
Javier Garibay provides key insights for investors, lawyers, and anyone interested in cross-border insolvency. Listen now! 🎧
