Mexican Legal Framework of Business Insolvency - White & Case
Mexican Legal Framework of Business Insolvency - White & Case
Mexican Legal Framework of Business Insolvency - White & Case
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The bank shall increase its corporate capital to the extent required to repay the<br />
loan and allow its ICAP to remain at 8 percent [LIC 122 bis 9]. Only then-current<br />
shareholders <strong>of</strong> the bank shall be allowed to subscribe for the capital increase<br />
[LIC 122 bis 10].<br />
If insufficient corporate capital is subscribed and paid so that the IPAB loan remains<br />
outstanding, IPAB shall adjudicate the shares at book value [LIC 122 bis 12].<br />
If, after the adjudication <strong>of</strong> shares, the IPAB loan is not repaid in full, the bank shall<br />
repay it [LIC 122 bis 12].<br />
Thereafter, the bank shall <strong>of</strong>fset all positive shareholders’ equity accounts<br />
(other than corporate capital) against all negative shareholders’ equity accounts<br />
[LIC 122 bis 13-I].<br />
The bank shall then apply losses against the corporate capital [LIC 122 bis 33-II].<br />
The bank shall increase its corporate capital to the extent required for its ICAP to<br />
remain at 8 percent [LIC 122 bis 13-II].<br />
IPAB shall subscribe and pay for such capital increase, including by capitalizing the<br />
outstanding balance <strong>of</strong> its loan [LIC 122 bis 13-II].<br />
IPAB shall <strong>of</strong>fer to sell all the shares <strong>of</strong> the bank [LIC 122 bis 14].