Mexican Legal Framework of Business Insolvency - White & Case

Under either of the two approaches, care should be taken that the rescheduling
agreement does not result in the imposition of additional guarantees or in
conditions that differ from current market conditions [LCM 114-III].
The reader can find more information on the subject of avoidable transactions in
Section 15.j in Part II.
Regardless of the approach taken, it is worth mentioning that the rescheduling agreement
will be binding only upon participating creditors. That is, nonparticipating creditors’ claims
will not be subject to its terms. Since a private workout will not be binding upon all creditors,
court assistance is sometimes necessary to achieve a successful reorganization or make
broadly effective an otherwise private workout plan. This is discussed generally in Part II
and particularly in Section 15.r.iv.
5. Publicly Traded Securities
A debtor that has issued publicly traded debt securities will encounter additional
complications in its workout efforts. Section 33 in Part V provides further analysis
on the issue.
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