Mexican Legal Framework of Business Insolvency - White & Case

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82 ■■ ■■ ■■ The reasons for the conciliator’s proposal and justification of the differences between the preliminary list and the debtor’s books and records or the creditors’ proofs of claim [LCM 128]. A reasoned list of disallowed claims [LCM 128]. A list of documents that are the basis for the conciliator’s proposal and a copy of such documents or indication of where they can be found [LCM 128]. The conciliator must present the preliminary list to the judge within 30 days of the date of publication of the concurso judgment in the Federal Official Gazette [LCM 121]. The judge will then make the preliminary list available to the debtor and the creditors for a five-day period, giving them the opportunity to object [LCM 129]. Within ten business days thereafter, the conciliator must prepare the definitive list of claims based on the preliminary list, the additional proofs of claim and the objections presented by the debtor and the creditors [LCM 130]. Within five business days thereafter, the judge shall enter judgment for the allowance, categorization and ranking of credits, as set forth on the definitive list [LCM 132]. The judgment for allowance, categorization and ranking of credits can be appealed by the debtor, any creditor, any conservator, the conciliator or the receiver and the Office of the Attorney General (only in the cases of concursos initiated by such Office) [LCM 136]. c. Ranking While many creditors will be similarly situated with respect to the kinds of claims they hold based on similar legal or contractual rights, others will have superior claims or hold superior rights. For these reasons, insolvency laws generally rank creditors for the purposes of distribution of the proceeds of the estate in liquidation by reference to their claims, an approach not inconsistent with the objective of equitable treatment. To the extent that different creditors have struck different commercial bargains with the debtor, the ranking of creditors may be justified by the desirability for the insolvency system to recognize and respect the different bargains, preserve legitimate commercial expectations, foster
predictability in commercial relationships and promote the equal treatment of similarly situated creditors. Establishing a clear and predictable ranking system for distribution can help to ensure that creditors are certain of their rights at the time of entering into commercial arrangements with the debtor and, in the case of secured credit, facilitate its provision. 60 A clear ranking is important because no creditor from a lower ranking can be paid until all creditors of a higher ranking are paid in full [LCM 223]. The ranking of claims is not completely clear under the Insolvency Law. This is a possible interpretation of the full ranking: 1. 2. Privileged labor claims [LCM 224-I]. Administrative claims [LCM 224-II]. 3. Claims incurred to attend to the regular expenses in connection with the security, repair, conservation and management of the estate assets [LCM 224-III]. 4. Claims for judicial or extrajudicial procedures for the benefit of the estate [LCM 224-IV]. 5. Burial expenses [LCM 217-I, 218-I]. 6. Terminal illness expenses [LCM 217-I, 218-II]. 7. Secured claims [LCM 217-II, 219]. 8. Labor and unsecured tax claims [LCM 221]. 9. Priority claims [LCM 217-III, 220]. 10. Unsecured claims [LCM 217-IV, 222]. 11. Creditors of unlimited partners of the debtor, if their claims arose after the partner became an unlimited partner61 [LCM 228]. 60 UNCITRAL (2005), p. 267. 61 Claims of creditors of unlimited partners of the debtor, whose claims precede the date when the partner became an unlimited partner, shall be treated as other claims, depending on the respective ranking [LCM 228]. White & Case 83
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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*
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PART IIISpecial Insolvencies ......
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2 Consignment Consignación Coopera
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4 Priority claim Crédito con privi
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Introduction All of a debtor’s as
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PART I Out-of-Court Restructuring O
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One of the risks that suppliers of
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Under either of the two approaches,
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. Prevention of Systemic Risk Anoth
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verification and admission of claim
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The issue is still divided between
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the debtor to arrive at a consensua
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v. Remuneration Specialists are ent
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after his death, if the creditors
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The above court precedent has two f
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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
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Page 59 and 60: ■■ ■■ Claims for an uncerta
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
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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
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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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Page 111 and 112: Capitalization is an important indi
Page 113 and 114: A bank would be declared en concurs
Page 115 and 116: Bank restructuring through support
Page 117 and 118: 30. Purchase-and-Assumption A bank
Page 119 and 120: causes for dissolution has occurred
Page 121 and 122: [LCM 75]. The determination as to w
Page 123 and 124: 33. Securities Market 84 Holders of
Page 125 and 126: A reorganization plan would be enfo
Page 127 and 128: ■■ ■■ All kinds of animals
Page 129 and 130: Galindo (1957). GALINDO GARFIAS, Ig
Page 132: whitecase.com In this publication,
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Mexican Legal Framework of Business Insolvency - White & Case

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