Mexico's retrogression: implications of a bankruptcy reorganization gone wrong
AbstractMexico 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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 35174.
Date of creation: 14 Nov 2011
Date of revision:
Mexico; bankruptcy; insolvency; workout; Vitro;
Find related papers by JEL classification:
- F34 - International Economics - - International Finance - - - International Lending and Debt Problems
- K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
- N26 - Economic History - - Financial Markets and Institutions - - - Latin America; Caribbean
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-12-13 (All new papers)
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