Texas Bankruptcy Court Denies Recognition to Mexican Financial Restructuring Plan; Decision to be Appealed to the Fifth Circuit

On June 13, the bankruptcy court for the Northern District of Texas in In re Vitro, S.A.B. de C.V. declined to recognize and enforce an order issued by the Federal District Court for Civil and Labor Matters for the State of León, Mexico, which approved Vitro SAB’s reorganization plan in its Mexican insolvency proceeding (known as a concurso mercantil proceeding). The final decision in this case will have a significant effect on the negotiation and implementation of cross-border financings and restructurings, especially those involving Mexican issuers and guarantors of U.S. debt instruments. by Paul J. Keenan Jr. and Alexandra Aquino-Fike.