Document Type
Article
Disciplines
International Law
Abstract
The Mexican Commercial Insolvency Law ("CIL"),' which abrogated the old and impractical Bankruptcy and Suspension of Payments Law ("BSPL"), came into effect on May 15, 2000. CIL applies not only to large corporations, but also to small businesses and individuals doing business2. It safeguards public interest by warning companies against defaulting on payment obligations.3 Moreover, drafters of CIL hoped that it would bolster confidence in the Mexican business community and that it would forge a new existence for foreign individuals and entities in Mexico.
Indeed, CIL looks to other foreign laws for guidance. For instance, articles 278 to 310 of CIL are modeled on the 1997 UNCITRAL Model Law on Cross Border Insolvency. The incorporation of the Cross Border Insolvency Law into CIL is indicative of Mexico's desire to become an important player in the international community. Commentators suggest that CIL favors both Mexican as well as foreign financial systems; thus, it attracts new investors to the country. In addition, CIL remains an important tool for debtors. Banking institutions are now attuned to restructuring debts. Finally, debtors now have experience in restructuring debt with their suppliers.
Recommended Citation
Martinez, Eduardo, "The New Environment of Insolvency in Mexico" (2001). Connecticut Journal of International Law. 361.
https://digitalcommons.lib.uconn.edu/cjil/361
Accessibility Requirements
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