Mexican Legal Framework of Business Insolvency - White & Case

■■ A foreign proceeding is a collective judicial or administrative proceeding in a foreign
state, including an interim proceeding, pursuant to a law relating to insolvency, in
which proceeding the assets and affairs of the debtor are subject to control
or supervision by a foreign court for the purpose of reorganization or liquidation
[LCM 279-I].
■■ A foreign main proceeding is a foreign proceeding taking place in the state
where the debtor has its center of main interests [LCM 279-II]. Mexico provides
substantially the same rebuttable presumption as the Model Law, that the debtor’s
registered office, or habitual residence in the case of an individual debtor, is the
center of the debtor’s main interests [LCM 295, UML 16.3].
■■ A foreign non-main proceeding is a foreign proceeding taking place in a state where
the debtor has an establishment [LCM 279-III].
■■ A foreign representative is a person or body, including one appointed on an interim
basis, authorized in a foreign proceeding to administer the reorganization or the
liquidation of the debtor’s assets or affairs or to act as a representative of the
foreign proceeding [LCM 279-IV]. It is worthy of note that the Insolvency Law
implicitly assumes that a foreign representative and a debtor have conflicting
interests. In contrast, in known US Chapter 15 cases, 63 the foreign representative
was affiliated with the Mexican debtor.
■■ A foreign court is a judicial or other authority competent to control or supervise a
foreign proceeding [LCM 279-V].
■■ An establishment is any place of operation where the debtor carries out a
non-transitory economic activity with human means and goods or services
[LCM 279-VI].
E.g.
63 , the Chapter 15 cases of Corporación Durango, Metrofinanciera, Controladora Comercial Mexicana, Compañía
Mexicana de Aviación and Vitro.
White & Case
87