MFA Submits Comments to USTR on Mexican Bankruptcy Law for Trade Negotiations

September 04, 2012

From: MFA, Stuart Kaswell


Ron Kirk, U.S. Trade Representative

MFA submitted comments to the U.S. Trade Representative (“USTR”) raising concerns with the Mexican Business Reorganization Act as demonstrated by Vitro S.A.B. de C.V.’s reorganization process in response to the USTR’s request for comments on negotiating objectives with respect to Mexico’s participation in the proposed Trans-Pacific Partnership Trade Agreement.  MFA is concerned that the Mexican Business Reorganization Act is susceptible to manipulation by debtors, by allowing company insiders to engineer outcomes that are highly prejudicial to legitimate third-party creditors, such as the extinguishment of certain creditor claims.