Mexican Legal Framework of Business Insolvency - White & Case

PART III
Special Insolvencies
The Insolvency Law provides for three special cases of insolvency: (1) public service
concessionaires; (2) banks; and (3) non-bank financial sector firms. Only the insolvency of
concessionaires and non-bank financial sector firms is addressed in this part of the book.
Bank insolvency is addressed in Part IV.
19. Public Service Concessionaires
A concession is an [administrative] act through which a private individual [or entity] is granted
[1] the management and exploitation of a public service or [2] the exploitation and benefit
of property of the state. 68 Concessionaires subject to differentiated treatment under the
Insolvency Law include only those with a concession of the first kind (i.e., a concession for
the management and exploitation of a public service).
The insolvency of a debtor providing a federal, state or municipal public service under a
concession is regulated by (1) its concession title; (2) the special laws and regulations
governing the public service in question; and (3) the Insolvency Law to the extent that it
does not oppose the concession title or the special laws and regulations [LCM 238].
The governmental entity that granted the respective concession can give suggestions
to the judge in all matters relating to the appointment, removal and replacement of the
conciliator and the receiver, and can appoint a manager of the enterprise [LCM 240, 241].
The appointment of an enterprise manager is different from the removal of the debtor
(cfr. 16.a); however, the practical difference is not evident in the Insolvency Law.
Any proposed reorganization plan to be executed by the debtor and its creditors must be
made known to the concession grantor, who shall have the authority to veto the proposed
plan [LCM 242].
68
Fraga (1991), p. 242.
98