Urbi is considering a filing under Mexico's bankruptcy law, some people familiar with the situation said.
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It is now plain that most of the money cannot be recovered by selling assets, because the loans were badly set up, and Mexico's bankruptcy law and judicial system are inadequate.
As U.S. equity markets and corporate balance sheets continue their remarkable comeback from the financial crisis that began in 2008, the recently announced merger between American Airlines and US Airways reminds us of the critical role that U.S. bankruptcy law, represented by Chapter 11 of the U.S. Bankruptcy Code, has played in the ongoing economic recovery.
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The case is set to be a big test of China's new bankruptcy law, which came into effect in 2007 but has rarely been applied to overseas-listed companies with assets in China.
Like America's bankruptcy code, the new law aims to give companies a chance to trade on, sort their problems out, preserve jobs and even help capitalists get some money back.
Citing an exception to U.S. law which favors honoring the bankruptcy proceedings of other nations, Judge Hale said it would violate public policy to allow Vitro to walk away from the guarantees backing its debt.
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But while Europeans might be bemused at all the moral outrage in America over the latest reforms, they might also wonder why Americans are so eager to move their bankruptcy law closer to Europe's especially since Europe is busily trying to emulate America.
It was the aftermath of this law that led to the court judgment sparking NHF's bankruptcy filing.
The law also applies to U.S. district courts and bankruptcy courts.
Because the law's provisions for restructuring are vague, those few companies that do declare bankruptcy rarely emerge alive.
Indeed, some economists argue that America's relatively debtor-friendly bankruptcy laws explain why it has a more entrepreneurial culture than countries where the law provides greater protection to creditors.
That testimony came about because the small law firm's founder, Thomas Ice, was searching for a way to help his bankruptcy clients.
Now some people question whether or not the state law like this would supersede a federal bankruptcy court and, you know, that's kind of a David versus Goliath situation.
Under current law, while municipalities are permitted the bankruptcy option through Chapter 9 of the U.S. Bankruptcy Code, there is no provision whereby a state can voluntarily opt to put itself into bankruptcy.
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That's the amount Zabel all but concedes Picard has the right to collect under New York State and federal bankruptcy law clawbacks, because it is what Picower took out in the six-year period prior to Picard's suit.
But Thailand's legal system is based on civil law, so the case may not be treated as a precedent by other bankruptcy judges.
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