- Despite the challenges facing the industry, growth is on the horizon.
- Rejection of bankruptcy proceedings is increasing due to lack of time and specialization.
CDMX, October 5, 2021. Carlos Olvera, legal partner and expert in restructuring and bankruptcy of the law firm Santamarina + Steta, noted that courts in Mexico urgently require substantial changes to properly apply the bankruptcy law, designed to protect companies in economic crisis.The spirit of this law, as in many others around the world, is to preserve insolvent companies in order to protect investment and work, both of which are essential for economic recovery.” said.
The specialist clarified that, although there have been fewer cases of insolvency than expected in Mexico, many companies are resorting to the courts to obtain the benefits that the law grants them to restructure their businesses and stay afloat.However, support is urgently needed for the judiciary to have more specialization, either through the creation of more courts or the transformation of district courts, which are overwhelmed and require more tools, materials and techniques to face their responsibility to society." destacó.
Carlos Olvera reported that "Since the creation of the Federal Institute of Commercial Bankruptcy Specialists (Ifecom) on May 12, 2000, as an auxiliary body of the Federal Judiciary Council (CJF) with technical and operational autonomy, as of November 30, 2020 (which is the last official report available) a total of 805 commercial bankruptcies have been admitted. From June to November 2020 alone, 27 bankruptcy applications were admitted in six states of the country, but unfortunately 48 applications were rejected in 13 federal entities..
"We are very far from effective judicial delivery in matters of bankruptcy, considering essentially the global and national economic crisis," concluded.
Mexico City Office
Tel. +52 55 5279 5400
Monterrey Office
Tel. +52 81 8133 6000
Queretaro Office
Tel. +52 442 290 0290
