| Mexico
Oscos Abogados is a boutique law firm in Mexico City with a team of professional and highly qualified lawyers and legal staff. The firm is headed by Dario Oscos who has held practice in insolvency, litigation and ADR´s since 1977. Dario Oscos is a member of the American Law Institute, participating in the NAFTA Insolvency Project, the International Insolvency Institute, Insol International, Insol Europe, International Bar Association and Mexican Bar, inter allia.
Mexican commercial insolvency is a pro creditor regime. Ley de Concursos Mercantiles (LCM) (enacted in 2002) provides for a single compound proceeding divided in two major phases: conciliation, that may last up to 185 calendar days with two possible extensions of 90 days, each subject to some majority of creditors approval; and, liquidation in bankruptcy. The December 2007 amendment provides for a pre-package settlements or reorganisations that may be approved by court upon simple creditor’s majority. The philosophy of the law is to privilege and welcome settlements and reorganisations. There is no real criminal responsibility under this law under Concurso Mercantil that may encourage solutions. This law is intended to resolve systemic crisis experienced by Mexico over the last two centuries; the banking crisis of 1995, perhaps being the worst crisis ever experienced.
Under Mexican Law and Jurisdiction, crossborder transactions are recognised and enforced, except when contrary to public policy and fundamental principles of law. Mexican Insolvency Law, enacted 2000, incorporates in Chapter 12 almost verbatim the UNCITRAL Model Law on Cross Border Insolvency, which is a fundamental, already proven, toll for the efficient and orderly international insolvency cooperation and solution of problems arisen from multinational insolvencies.
Because of the effects of the international crisis and economical recession affecting Mexican economy, there is an increase of financial institutions, commercial, industrial and services, entrepreneurs, merchants, families and individuals that are being financially distressed and looking for viable solutions. Oscos Abogados will have a very important role assisting creditors and distressed enterprises in finding legal and practical means to face the financial crisis with viable solutions that may define distress situations in an out of court settlement, when possible, saving time and money.
We strongly encourage immediate out of court settlements among all parties involved, debtors, creditors, workers, entrepreneurs, individuals, government, and all tax creditors. The target should be, when viable, keep the enterprises as an ongoing concer to support the economy chain, otherwise, to immediately liquidate assets in an orderly and efficient process, being in Concurso Mercantil or in out of court process. Experience has shown that litigation should only be the very last resort.
