Mexican Legal Framework of Business Insolvency - White & Case

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106 – If subject to a condition precedent, the condition shall be deemed as never occurred [LIC 122 bis 21-V]. Therefore, the claim shall be deemed not to exist. 76 – If subject to a condition subsequent, the condition shall be deemed as occurred, that is, the claim shall be extinguished [CCF 1940]; however, the parties shall not be entitled to a refund of any consideration paid during the pendency of the condition [LIC 122 bis 21-VI]. ■■ IPAB is entitled to carry out purchase-and-assumption ( cfr. 30) or other transactions it considers to be the best alternative to the interests of the depositors in light of the circumstances [LIC 122 bis 25], subject to the lesser cost rule [LIC 122 bis 26]. The lesser cost rule implies that the cost of implementing an alternative should be lower than the cost of paying IPAB-insured liabilities [LIC 122 bis 26]. 29. Bank Restructuring A bank would be subject to bank restructuring if (1) the bank meets any commencement standard (cfr. 23); and (2) the CEF determines that [x] the bank is systemically important and [y] 100 percent of the bank’s non-IPAB-insured liabilities are susceptible to systemic repercussions [LIC 122 bis-II]. The type of bank restructuring would depend on whether the bank elected to be subject to the conditioned operation regime (cfr. 26). A bank that elected to be subject to the conditioned operation regime would be subject to bank restructuring through support, whereas a bank that did not elect to be subject to the conditioned operation regime would be subject to bank restructuring through loans [LIC 122 bis II-a]. a. Bank Restructuring Through Support Bank restructuring through support is available if (1) the bank [x] meets any commencement standard, and [y] is subject to the conditioned operation regime; and (2) the CEF determines that [x] the bank is systemically important and [y] 100 percent of the bank’s non-IPAB-insured liabilities are susceptible to systemic repercussions [LIC 122 bis 2]. 76 Borja (1991), pp. 395-399.
Bank restructuring through support is carried out in the following fashion: ■■ ■■ ■■ ■■ ■■ ■■ The bank shall offset all positive shareholders’ equity accounts (other than corporate capital) against all negative shareholders’ equity accounts [LIC 122 bis 3-I]. The bank shall then apply losses against the corporate capital [LIC 122 bis 3-II]. The bank shall increase its corporate capital to the extent required for its ICAP to reach 8 percent [LIC 122 bis 3-II]. IPAB shall subscribe and pay for such capital increase [LIC 122 bis 3-III]. IPAB shall offer those shares to the shareholders of the bank that placed their shares in trust (cfr. 26(2)) [LIC 122 bis 3-III]. Thereafter, if any shares remain unsold, IPAB shall sell (and cause the trust referred to in 26 to sell) all of the shares of the bank [LIC 122 bis 4, 122 bis 5]. b. Bank Restructuring Through Loans Bank restructuring through loans is available if (1) the bank [x] meets any commencement standard, and [y] is not subject to the conditioned operation regime; and (2) the CEF determines that [x] the bank is systemically important and [y] 100 percent of the bank’s non-IPAB-insured liabilities are susceptible to systemic repercussions [LIC 122 bis 7]. Bank restructuring through loans is carried out in the following fashion: ■■ ■■ CNBV shall cause the intervention of the bank, through an intervenor appointed by IPAB [LIC 138, 139]. IPAB shall make a 15-day loan to the bank in the amount required for the bank’s ICAP to reach 8 percent [LIC 122 bis 7]. The loan (1) shall be secured by all the bank’s shares; and (2) may be repaid only out of proceeds from an increase of the bank’s corporate capital [LIC 122 bis 8]. White & Case 107
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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
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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
Page 89 and 90: ■■ ■■ ■■ ■■ ■■
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
Page 101 and 102: 30, 31, 32, 33, 34, 35, 36, 37, 38,
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
Page 109 and 110: ■■ ■■ If, however, somethin
Page 111 and 112: Capitalization is an important indi
Page 113: A bank would be declared en concurs
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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