Document Type

Article

Disciplines

International Law

Abstract

A survey of former Mexican laws reveals antecedents of current laws related to insolvency. The first bankruptcy law, enacted in 1853, followed two models: a French law, enacted in 1802, and a Spanish statute, enacted in 1892. Further, commercial codes, enacted in 1854, 1883, and 1890 (the latter of which is still in effect), had specific chapters on the subject. In 1942, a team chaired by an outstanding lawyer, Mr. Joaquin Rodriguez y Rodriguez, drafted the Bankruptcy Law (Ley de Quiebras y Suspension de Pagos), which was later enacted by Congress. Except for one small amendment, added in 1987, the law remained effective until May 12, 2000.

The Bankruptcy Law, along with the insolvency chapter from the 1890 Commercial Code, has formed the backbone of a long series of decisions of the Supreme Court of Justice. Over the past twenty years, scholars, government agencies and political parties have proposed several drafts for a new law. Although some of these drafts were submitted to the House for approval, they were nonetheless rejected without further discussion. During-the last two or three years, however, a strong movement has emerged. Both developed countries, such as Germany, France, the United Kingdom, the Netherlands, and Spain, as well as countries with emerging economies, such as Argentina, Brazil, Chile, Indonesia, and Peru, have changed or are in the process of reforming their insolvency legislation.

In 1999 and 2000, with these examples in mind, foreign and national experts came together with banks, unions, entrepreneurs, authorities, members of the House and Senate, political parties, scholars, practitioners and so on, to discuss the possibility of new legislation. These discussions culminated in the submission of a draft to Congress. In November 1999, it was submitted to the Senate, where Senators of one party disapproved of the final draft of the law. The Senate eventually approved it by a vote of seventy-eight to twenty-three. Before submitting it to the House for approval, the drafters introduced several changes. Subsequently, in April 2000, the House approved the new text by a vote of 355 to 3, and sent it to the Senate. Although some of the provisions were reserved for a specific vote, they nonetheless passed through by a proportion of two to one.' Once again, the Senate discussed the reformed act. It was finally approved on April 27, 2000, by a vote of 104 to 0 in the Senate. The President signed the act on May 8, 2000, and the Official Gazette published it on May 12, 2000.2 It went into effect the following day.

The new law provides for a new agency---the Federal Institute of Specialists on Commercial Insolvency ("IFECOM")-in charge of administering insolvency. Under the new law, the agency was created in thirty days and had sixty more days to produce general rules and specific regulations. Members of the Board were appointed, sworn in and took office on June 12, 2000. Two regulations-the general criteria to appoint specialists and the general rules, were published on July 12, 2000 and August 11, 2000, respectively.' By August 12, 2000, the new law was fully operative. The former bankruptcy statute remains effective only to complete actions originally brought pursuant to the old law.

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