Mexican Legal Framework of Business Insolvency - White & Case

filing such proofs of claim and indicate whether secured creditors are required to file
proofs of claim [LCM 291].
b. Appeal
The judgment that declares the debtor en concurso (or denies such declaration) can be
appealed by the debtor, the visitor, the demanding creditors or the Office of the Attorney
General [LCM 49].
c. Conciliatory Stage
The stated purpose of the conciliatory stage is to conserve or save the business
enterprise through a restructuring plan [LCM 3].
The conciliatory stage is designed to be completed in 185 days, although one 90-day
extension may be granted if the conciliator or creditors representing two-thirds of the
recognized claims so request. An additional 90-day extension may be granted if the
debtor, together with creditors representing 90 percent of the recognized claims, so
requests. The Insolvency Law clearly provides that in no event may the conciliatory
stage be extended beyond 365 days, whereupon, if no restructuring plan is agreed to,
the liquidation stage will immediately begin [LCM 145 and 167-II].
d. The Estate
From a doctrinal point of view, the estate is the portion of the assets of the debtor
devoted to satisfy creditors’ claims, over which the debtor has limited governance
(during conciliation) or no governance (during liquidation).
The Insolvency Law defines estate as the sum of all the assets of the debtor, other
than excluded assets, on which creditors can make their claims effective [LCM 4-V].
The estate includes all assets of the debtor (whether tangible or intangible, present
or after-acquired, encumbered or unencumbered), but excludes nontransferable
assets, those that cannot be attached and those that are not subject to adverse
possession [LCM 179].
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