EMTA Presents Panel on Mexican Bankruptcy
On December 7, 2011, EMTA hosted a panel discussion on “The Vitro Effect: Troubling Developments in Mexican Insolvency Law” at its offices at 360 Madison Avenue in NYC.
The interpretation of Ley de Concursos Mercantiles (LCM, best translated as the Business Reorganization Act of 2000), which incorporated most of the best international practices, with its main objectives to preserve and protect the rights of the various local and foreign constituencies typically involved in a Mexican insolvency proceeding, maximizing the value of company assets and their eventual distribution among creditors, is being put to the test by a potentially precedent-setting case involving Vitro, a leading glass manufacturer, whose intra-company loans from subsidiaries have become a major point of contention.
This panel presentation discussed Vitro and its effects, as well as more general matters relating to the LCM.
Dennis Hranitzky (Dechert) moderated the panel discussion, and other panelists and their topics included:
Alejandro Sainz (Cervantes y Sainz) – Rigging the Game in Mexico: The Role of Intercompany Claims
Dennis Hranitzky (Dechert) – Vitro’s Mexico Strategy vs. U.S. Law and Public Policy: A Game of Chicken
Robert Rauch (Gramercy Advisors) –Mexico’s Concurso Mercantil from an International Bondholder’s Perspective - Should There be a “Vitro Premium?”
Jose Coballasi (Standard & Poor’s) – How Did Recovery Ratings on Mexican Corporate Issuers Perform Through the Financial Crisis?
Claudio Loser (Senior Fellow, Inter-American Dialogue; President, Centennial Group Latin America; Former IMF Western Hemisphere Director (1994 – 2002)) – Mexico: Can it Have a Prosperous Future Without Effective Rule of Law?
Rigging the Game in Mexico: The Role of Intercompany Claims (Alejandro Sainz, Cervantes y Sainz)
Mexico’s Concurso Mercantil from an International Bondholder’s Perspective - Should There be a “Vitro Premium?” (Robert Rauch, Gramercy Advisors)
How Did Recovery Ratings on Mexican Corporate Issuers Perform Through the Financial Crisis? (Jose Coballasi, Standard & Poor’s)
Mexico: Can it Have a Prosperous Future Without Effective Rule of Law? (Claudio Loser, Senior Fellow, Inter-American Dialogue; President, Centennial Group Latin America; Former IMF Western Hemisphere Director (1994 – 2002))
Document containing links to the above presentations and other articles and cases of interest
Additional support for this event was provided by Standard & Poor’s.