Mexican Legal Framework of Business Insolvency - White & Case

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to their corresponding collateral or privilege [LCM 153]; (3) the creation of sufficient
reserves to pay the differences that could result from appealed claims and tax claims
that are pending determination [LCM 153]; (4) with respect to claims of unsecured
creditors that did not sign the plan, an extension of term and/or a haircut not larger
than that applicable to the group of unsecured creditors who did sign the plan
representing at least 30 percent of all unsecured claims [LCM 159].
iv. Acceptance
To become effective, a restructuring plan must be accepted (i.e., signed) by the debtor
and creditors representing more than 50 percent of the sum of (1) all the debtor’s
unsecured claims (regardless of whether the holders of such claims have accepted
the reorganization plan) plus (2) all the claims of the debtor’s secured or priority
creditors accepting the reorganization plan.
The plan shall be deemed accepted (conclusive presumption) by all those unsecured
creditors whose claims are stated to be paid in full, subject to certain legal rules
concerning quantification [LCM 158].
v. Court Approval and Veto
After receiving approval of a reorganization plan from the debtor and the required
number of creditors, the conciliator must then submit the reorganization plan to
the court for its own review and approval. Unsecured creditors are entitled to file
objections or “veto” the reorganization plan for a set period of time. Following such
period, the court would then approve the reorganization plan if it finds that the
proposed plan meets all the statutory requirements and is not inconsistent with any
public policy provision. The courts will not review the substance of the reorganization
plan [LCM 161-164].
vi. Binding Effects
The reorganization plan, with the validation of the court, would become binding on
(1) the debtor; (2) all unsecured creditors (regardless of whether or not they signed