Mexico

Mexico’s new Finance Minister Rogelio Ramirez de la O pledged to maintain the country’s austerity, making a better use of its resources instead of increasing the debt burden, according to a statement, Bloomberg reported. Ramirez, a longtime ally and third Finance Minister of President Andres Manuel Lopez Obrador, begins what in Mexico is considered the most influential cabinet role with the goal of obtaining a level of independence his predecessors didn’t attain.

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Mexican telecommunications company Altan Redes, which has since 2016 been developing an ambitious telecommunications network built for carriers delivering the latest generation of technology, said on Tuesday that it has filed for bankruptcy, Reuters reported. The shared network is part of a reform to the sector aimed at curbing the dominance of the giant America Movil, controlled by the family of billionaire Carlos Slim, and improving the low levels of mobile phone penetration and network coverage.
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Mexican businessman Miguel Aleman Magnani is residing in France and fighting an arrest warrant in his native country on charges of tax fraud, his lawyer said Tuesday, Bloomberg News reported. Aleman Magnani is accused by Mexican authorities of not paying 65 million pesos ($3.2 million) in taxes dating back to 2018 that the airline he co-founded, Interjet, collected from customers and employees but failed to forward to the government. Aleman Magnani has no intention to travel to Mexico for the time being. “It’s not clear that Mr.
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Aeromexico said on Friday a group of Mexican shareholders and business people had informed the airline they aimed to participate in a major capital raising as part of the company's Chapter 11 restructuring process in the United States, Reuters reported. Aeromexico in a statement said it was unaware that any agreement had been reached so far, but would provide details as and when one was in place. It also noted it expected the investment to be "substantial, controlling and long-term." Delta Airlines, which owned a noncontrolling 51% stake in Aeromexico as of Dec. 31, declined to comment.
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A Mexican court has issued an arrest warrant on tax fraud charges for one of the founders of Mexican airline Interjet as the nation’s president targets an elite group that he calls corrupt, Bloomberg News reported. Miguel Aleman Magnani is accused of not paying 65 million pesos ($3.3 million) in taxes the airline collected from customers and employees but failed to forward to the government, said a person familiar with the matter who asked not to be named because the charges haven’t been publicly announced. Further charges may be forthcoming, the person said.
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Mexican airline Grupo Aeromexico said on Tuesday the U.S. Bankruptcy Court for the Southern District of New York, presiding over its chapter 11 restructuring process, gave it 75 more days to present a reorganization plan, Reuters reported. “The court approved the extension because, among other reasons, of the good progress the company has made with its restructuring,” Aeromexico said. Read more.
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Mexican airline Interjet hopes to strike a deal with creditors within a year so it can re-start operations after it shut down during the coronavirus pandemic in December, the firm representing it in the debt talks said, Reuters reported. Shareholders of the carrier owned by ABC Aerolineas reached an agreement in April for Interjet to seek commercial bankruptcy to allow it to restructure $1.25 billion in liabilities. Interjet had also been struggling before the pandemic.
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The U.S. government is preparing to downgrade Mexico's aviation safety rating, a move that would bar Mexican carriers from adding new U.S. flights and limit airlines' ability to carry out marketing agreements, Reuters reported. The Federal Aviation Administration's (FAA) planned move is expected be announced in the coming days and follows a lengthy review of Mexico's aviation oversight by the agency. One airline industry source said the FAA's concerns did not involve flight safety issues but rather Mexico's oversight of air carriers.
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A wave of accounting revisions is hitting two of Mexico’s largest nonbank payroll lenders and the international bond investors who lent them billions of dollars in recent years, the Wall Street Journal reported. Privately held AlphaCredit Capital SA de CV and publicly listed Credito Real SA CREAL -2.60% B de CV disclosed unexpected losses in recent weeks, and AlphaCredit also said financial statements from 2018 to 2020 could no longer be relied upon. Credito Real incorporated a relatively large loan it had made to a small business into its past-due loan book.
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The Biden administration announced yesterday that it was asking Mexico to review whether labor violations had occurred at a General Motors facility in the country, a significant step using a new labor enforcement tool in the revised North American trade deal, the New York Times reported. The administration is seeking the review under the novel “rapid response” mechanism in the United States-Mexico-Canada Agreement, which replaced the North American Free Trade Agreement and took effect last summer.
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