Mexican Legal Framework of Business Insolvency - White & Case

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50 n. Claims and Contracts i. Acceleration Upon the declaration of concurso, all claims against the debtor shall become due [LCM 88-I]. Claims subject to conditions precedent shall be deemed as if the condition had never occurred [LCM 88-II]. Therefore, the claim shall be deemed not to exist. 32 Claims subject to a condition subsequent shall be deemed as if the condition 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 [LCM 88-III]. ii. Quantification and Conversion The claims must be quantified upon acceleration. For most term claims, this is an easy exercise, since they would be quantified at par. However, for other types of claims, the rules are casuistic: ■■ ■■ Claims under periodic or successive payments shall be quantified, discounting them at their present value. The discount rate shall be the one agreed to by the parties or, in the absence of an agreement, the prevailing market rate for similar transactions and, if such market rate cannot be determined, the legal interest rate 33 [LCM 88-IV]. Claims for annuities shall be quantified at their replacement value and, in the absence of such replacement value, at their present value determined by commonly accepted practice [LCM 88-V]. 32 Borja (1991), pp. 395-399. 33 The “legal interest rate” is 9 percent per annum for claims of a civil nature [CCF 2395]. It is unclear what the “legal interest rate” is for claims of a commercial nature.
■■ ■■ Claims for an uncertain or undetermined amount must be determined [LCM 88-VI]. Claims that cannot be quantified shall not be recognized [LCM 88-VII]. The Insolvency Law establishes provisions that are designed to protect the monetary value of claims against inflation, once they are quantified. All claims are converted into UDIs and cease accruing ordinary and default interest. Only secured claims continue to accrue ordinary interest and can be maintained in their original currency or unit of account to the extent covered by the value of the collateral [LCM 89]. iii. Executory Contracts Achieving the objectives of maximizing the value of the estate and reducing liabilities and, in reorganization, enabling the debtor to survive and continue its affairs to the maximum extent possible in an uninterrupted manner may involve taking advantage of those contracts which are beneficial and contribute value to the estate (including contracts that will enable the continued use of crucial property that may be owned by a third party) and rejecting those which are burdensome or those where the ongoing costs of performance exceed the benefit to be derived from the contract. 34 As a general principle, the declaration of concurso does not affect the provisions of an executory contract, unless the conciliator rejects it on grounds that rejection is in the best interest of the estate [LCM 86, 92]. Any provision of an agreement that sets modifications that worsen the contractual terms for a debtor as a result of the filing of a petition or demand for, or the 34 UNCITRAL (2005), p. 120. White & Case 51
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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*
Page 8 and 9: PART IIISpecial Insolvencies ......
Page 10 and 11: 2 Consignment Consignación Coopera
Page 12 and 13: 4 Priority claim Crédito con privi
Page 15 and 16: Introduction All of a debtor’s as
Page 17 and 18: PART I Out-of-Court Restructuring O
Page 19 and 20: One of the risks that suppliers of
Page 21 and 22: Under either of the two approaches,
Page 23 and 24: . Prevention of Systemic Risk Anoth
Page 25 and 26: verification and admission of claim
Page 27 and 28: The issue is still divided between
Page 29 and 30: the debtor to arrive at a consensua
Page 31 and 32: v. Remuneration Specialists are ent
Page 33 and 34: after his death, if the creditors
Page 35 and 36: The above court precedent has two f
Page 37 and 38: 2. Voluntary Acceptance Small merch
Page 39 and 40: ii. Passive Estate Since a branch i
Page 41 and 42: For a debtor to be considered a hol
Page 43 and 44: ■■ Shutting down the enterprise
Page 45 and 46: ■■ The facts that motivate the
Page 47 and 48: filing such proofs of claim and ind
Page 49 and 50: 29 P. 161. i. Conservative Measures
Page 51 and 52: i. Disposition of Assets During con
Page 53 and 54: ■■ ■■ Granting of collatera
Page 55 and 56: All assets acquired by the concubin
Page 57: ■■ ■■ ■■ ■■ ■■
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
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
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■■ ■■ If, however, somethin
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Capitalization is an important indi
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A bank would be declared en concurs
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Bank restructuring through support
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30. Purchase-and-Assumption A bank
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causes for dissolution has occurred
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[LCM 75]. The determination as to w
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33. Securities Market 84 Holders of
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A reorganization plan would be enfo
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■■ ■■ All kinds of animals
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Galindo (1957). GALINDO GARFIAS, Ig
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Mexican Legal Framework of Business Insolvency - White & Case

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