Insolvency of Mexicana in its final phase

May 22, 2013
Insolvency of Mexicana in its final phase

In the last days several media has informed on the possibility that the Mexicana de Aviación airline goes bankrupt, after an extensive insolvency proceeding. The media has affirmed the termination of the insolvency and the possible bankruptcy in which the airline would fall since the governing Judge of the insolvency proceeding Attorney Edith Alarcón announced that none of the investors interested in the airline complied with the requirements stipulated in the call launched in the past January.

The Judge Edith Alarcón confirms that the investors do not have the one hundred million dollars necessary to be visible before a national financial entity. These were recognized as the sole and potential investors for the restart of the firm.

Given the circumstances there is no possibility of rescue of the Mexicana de Aviación airline the term for the execution of the insolvency agreement is fixed for the month of June of this year and being difficult to find any investor, the company would go bankrupt.

There is no doubt that this insolvency procedure had political interests and topics and that without a doubt obstructed to come to the rescue of the airline. Coupled with that, the insolvency procedure was not duly carried out by the judicial authority, in the Law itself of Insolvencies it is provided that the company should continue its operations and therefore to be in a status of “payment suspension” with its creditors while the insolvency agreement is reached, such situation did not occurred, we have that since the airline went to insolvency proceeding it has not operated contravening the procedural law itself.

Therefore, given the circumstances raised, it is considered that the judicial procedure of Mexicana de Aviación is in its end having as a result the bankruptcy and subsequently the distribution of assets for the creditors; leaving thousands of unemployed that directly or indirectly it is projected that they are around 8 thousand persons.


Lic.Victor Hugo López Lamadrid