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Recognition of foreign proceedings
Under what circumstances will the courts in your jurisdiction recognise the validity of foreign insolvency proceedings?
Mexican courts recognise the validity of foreign insolvency proceedings:
- when a foreign court or representative asks for assistance from the Mexican courts regarding a foreign insolvency proceeding;
- when the insolvency proceeding takes place in Mexico and a foreign country; and
- when foreign creditors ask for an insolvency proceeding to be initiated in Mexico.
Winding up foreign companies
What is the extent of the courts’ powers to order the winding up of foreign companies doing business in your jurisdiction?
If the foreign company does business in Mexico or has agencies or offices there, it is considered a merchant under the Mexican Commercial Code and the court with jurisdiction in the place where the foreign company does business can order the insolvency proceedings or liquidation of the foreign company’s agencies and offices. However, it will be limited to the rights, goods, assets and properties located in Mexico.
Centre of main interests
How is the centre of main interests determined in your jurisdiction?
Under Mexican law, the place where the debtor conducts the administration of its business will be considered the centre of main interests, regardless of the location of its assets and properties.
What is the general approach of the courts in your jurisdiction to cooperating with foreign courts in managing cross-border insolvencies?
The Commercial Insolvency Law dedicates a whole chapter to cross-border insolvencies and Mexico is part of the United Nations Commission on International Trade Law Model Law on Cross-border Insolvency, so that cooperation with foreign countries in managing cross-border insolvencies is fully regulated and the courts are generally cooperative with foreign courts.
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