Mexico: New federal courts for commercial bankruptcy proceedings (concursos mercantiles)
In order to encourage the promotion and specialized attention of corporate restructuring and insolvency proceedings, by agreement of the Plenary Assembly of the Federal Judicial Council of Mexico, two district courts specializing in commercial bankruptcy cases (concursos mercantiles) were created, located in Mexico City.
Commercial Bankruptcy Courts
By means of General Agreement 4/2022 (the “Agreement”) of the Plenary Assembly of the Federal Judicial Council, published in the Official Gazette of the Federation on March 4, 2022, two specialized commercial bankruptcy courts have been established . Among other things, the Accord outlines the following:
- Like other international jurisdictions, the agreement provides for the creation of the first two specialized courts for the filing, processing and attention of insolvency proceedings or concursos mercantiles requested by companies/debtors or filed by creditors throughout Mexico.
- The courts have been designated as “First and Second District Commercial Bankruptcy Courts” and will be located in Mexico City.
- These courts will hear first instance commercial bankruptcy proceedings (concursos mercantiles) and indirect amparo suits brought against resolutions issued by other district judges in commercial bankruptcy cases. The unitary and collegiate circuit courts retain jurisdiction to adjudicate appeals and indirect and direct amparo claims related to these insolvency proceedings.
- The specialized courts will start operating from March 7, 2022. In addition, it should be noted that all active insolvency proceedings that are active on other district courts across the country, regardless of the stage of these procedures, will be transferred to the new courts from November 2020. Likewise, the indirect amparo relating thereto will be returned to them.
With the creation of these first courts specializing in insolvency proceedings, a resumption of insolvency and corporate restructuring proceedings is expected in Mexico, since there will finally be expert judges who will guarantee the rapid and rapid application of Mexican commercial bankruptcy law.