- In 2021, 7 out of 10 bankruptcy applications were rejected.
- There will be completely specialized courts with a legal and economic vision to support negotiations between the company, creditors, the Treasury, and employees.
Mexico City, March 15, 2022. Carlos Olvera, the leading partner in the insolvency area of the firm Santamarina y Steta, reported that the Federal Judicial Council finally approved and ordered the creation of two new courts specialized in commercial bankruptcies, which will surely reverse the dramatic tendency of the courts to reject applications from companies with economic difficulties, which have resorted to said legal mechanism to restructure and reinsert themselves into economic activity.
|Discarded bankruptcy report|
“The creation of two courts specializing in bankruptcy matters is encouraging news. Just last year, about 7 out of 10 applications were rejected. In addition to being saturated, the courts previously did not have the material and human resources to assess and deal with this type of judicial process with integrity, which made it even more difficult to achieve negotiations and agreements between the company and its creditors. , the treasury and the employees who are the factors that participate in the economic and social equation that if they decide to walk in the same direction they can save the entire productive cell”, he said.
The specialist pointed out that after almost 22 years since the Commercial Bankruptcy Law was published, the entry into operation on March 7 of the specialized courts will undoubtedly contribute to finding a platform to solve all the conflicts and problems that accompany the insolvency and illiquidity of the companies, which will be a respite for the productive society of Mexico, so affected by the recent political, economic and health events. "After having carried out the main bankruptcies and restructurings in Mexico, the experience that we have had in our Firm is that this resource has not only allowed companies to survive but has reinserted them in the economy with new vigor," he concluded.
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