The Business Reorganization Law includes provisions regarding cooperation in international proceedings. A foreign insolvency procedure will be recognized when an appropriate foreign representative submits a petition to a Mexican court for recognition of the procedure and complies with certain other requirements. The law distinguishes between two types of foreign insolvency proceedings, based on whether the debtor has its main place of business in the foreign jurisdiction or merely conducts business on a regular basis in the foreign jurisdiction.

The Mexican courts will cooperate with foreign jurisdictions on a reciprocal basis where:

  • a foreign court or a foreign representative (as defined in the law) submits a petition for assistance in Mexico in connection with a foreign insolvency proceeding;

  • assistance is requested in a foreign country in connection with a proceeding implemented according to Mexican law;

  • there are simultaneous insolvency proceedings against the same debtor in both Mexico and a foreign jurisdiction; and

  • creditors or other interested parties located in a foreign jurisdiction have an interest in initiating or participating in an ongoing insolvency proceeding in Mexico.

Mexico has not signed any international treaty related to insolvency or bankruptcy proceedings.

For further information on this topic contact Jaime R Guerra González, José Víctor Rodríguez Barrera, Alonso Rivera Gaxiola, Alfonso Peniche García or Ernesto Rodríguez León at Guerra González y Asociados, SC by telephone (+52 55 5543 9270) or fax (+52 55 5543 6621 or +55 5543 6624) or by email ([email protected]).