Mexican Legal Framework of Business Insolvency - White & Case

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27. Resolution Alternatives and Systemic Importance The Financial Stability Committee, or CEF, formed by high-ranking officers from the Ministry of Finance, or SHCP, along with Banco de México, CNBV and IPAB, is entrusted with determining whether a bank is systemically important and what percentage of the bank’s non-IPAB-insured liabilities are susceptible to systemic repercussions. A bank shall be systemically important if failure of such bank to meet its obligations would (1) generate serious negative effects in other banks or other financial system firms in such a manner that it puts their stability or solvency in peril, if such an event would affect the stability or solvency of the financial system; or (2) jeopardize the functioning of the payment system [LIC 29 bis 6, 29 bis 8]. A bank that meets the commencement standards (cfr. 23) would be subject to resolution. The type of bank resolution technique would depend on whether the bank in question is systemically important. Non-systemically important banks are subject to winding up and, if applicable, liquidation. Systemically important banks would be subject to bank restructuring or purchase-and-assumption techniques. Bank restructuring is available if the CEF determines that 100 percent of the bank’s non-IPAB-insured liabilities are susceptible to systemic repercussions, and purchase-and-assumption techniques are available if the CEF determines that less than 100 percent of the bank’s non-IPAB-insured liabilities are susceptible to systemic repercussions [LIC 122 bis]. 28. Winding Up and Liquidation A bank would be wound up if (1) the bank meets any commencement standard; and (2) the CEF does not make a determination that the bank is systemically important [LIC 122 bis-I]. Winding up is also available in the case of voluntary winding up and in the case of revocation of the bank’s license for reasons unrelated to insolvency, which are not addressed herein. 104
A bank would be declared en concurso if it meets the commencement standards otherwise applicable to non-bank debtors (cfr. 11). The winding up of a bank and its concurso shall be carried out pursuant to the following special rules, in addition to the general rules applicable to non-bank debtors: ■■ Only IPAB or CNBV are entitled to demand the concurso [LIC 122 bis 16-II; LCM 246]. 74 ■■ IPAB shall be named as the liquidator or receiver [LIC 122 bis 16-I]. ■■ The concurso of a bank shall begin in the liquidation stage [LCM 249]. ■■ In the case of the concurso of a bank, the bank shall close all of its branches and suspend entering into new transactions [LCM 246]. ■■ IPAB shall pay all IPAB-insured obligations of the bank [LIC 122 bis 17]. ■■ The bank’s non-IPAB-insured obligations: – Shall be stayed [LIC 122 bis 16-III]. – Shall become due [LIC 122 bis 21-I]. 75 – If unsecured, shall be converted into pesos and shall cease accruing interest [LIC 122 bis 21-II-III]. – If secured, shall be maintained in their original currency or unit of account and shall continue accruing interest to the extent covered by the collateral [LIC 122 bis 21-IV]. 74 It is unclear whether the concurso of a bank can be initiated through the bank’s petition or only as a result of demand from IPAB or CNBV. 75 It is unclear whether, as a result of a bank’s concurso, its non-IPAB-insured obligations are converted into pesos (as a result of the application of the LIC) or into UDIs (as a result of the application of the LCM). White & Case 105
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Mexican Legal Framework of Business
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Mexican Legal Framework of Business
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Maria Teresa Fernández Labardini*
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PART IIISpecial Insolvencies ......
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2 Consignment Consignación Coopera
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4 Priority claim Crédito con privi
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Introduction All of a debtor’s as
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PART I Out-of-Court Restructuring O
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One of the risks that suppliers of
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Under either of the two approaches,
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. Prevention of Systemic Risk Anoth
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verification and admission of claim
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The issue is still divided between
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the debtor to arrive at a consensua
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v. Remuneration Specialists are ent
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after his death, if the creditors
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The above court precedent has two f
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2. Voluntary Acceptance Small merch
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ii. Passive Estate Since a branch i
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For a debtor to be considered a hol
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■■ Shutting down the enterprise
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■■ The facts that motivate the
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filing such proofs of claim and ind
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29 P. 161. i. Conservative Measures
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i. Disposition of Assets During con
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■■ ■■ Granting of collatera
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All assets acquired by the concubin
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■■ ■■ ■■ ■■ ■■
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■■ ■■ Claims for an uncerta
Page 61 and 62: chattel 35 ) unless its price is pa
Page 63 and 64: c. Extensions of Credit An extensio
Page 65 and 66: the negotiable instruments and the
Page 67 and 68: epayment or abandonment shall apply
Page 69 and 70: ■ ■ Swaps: transactions in whic
Page 71 and 72: If the subject matter of the constr
Page 73 and 74: Netting of obligations in light of
Page 75 and 76: they function generally determine f
Page 77 and 78: . The Reorganization Plan The purpo
Page 79 and 80: extend to guarantors or co-obligors
Page 81 and 82: the reorganization plan); (3) all s
Page 83 and 84: If a debtor does not successfully c
Page 85 and 86: ii. Timing Removal takes effect leg
Page 87 and 88: Claims by creditors operate at two
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Page 91 and 92: predictability in commercial relati
Page 93 and 94: The receiver may oppose the foreclo
Page 95 and 96: ■■ A foreign proceeding is a co
Page 97 and 98: Conditioning the application of cro
Page 99 and 100: f. Enabling and Access The rules of
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Page 103 and 104: ii. Once Recognition Is Granted Onc
Page 105 and 106: concerning the coordination of proc
Page 107 and 108: 20. Non-bank Financial Sector Firms
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Page 115 and 116: Bank restructuring through support
Page 117 and 118: 30. Purchase-and-Assumption A bank
Page 119 and 120: causes for dissolution has occurred
Page 121 and 122: [LCM 75]. The determination as to w
Page 123 and 124: 33. Securities Market 84 Holders of
Page 125 and 126: A reorganization plan would be enfo
Page 127 and 128: ■■ ■■ All kinds of animals
Page 129 and 130: Galindo (1957). GALINDO GARFIAS, Ig
Page 132: whitecase.com In this publication,
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Mexican Legal Framework of Business Insolvency - White & Case

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