Mexico’s Communications Ministry has appointed a mediator to oversee the restructuring of satellite operator Satmex, White & Case announced Oct. 6.
White & Case partner Thomas Heather has been appointed by the Mexican government to help move the restructuring process along, because “creditors and Satmex’s shareholders have been frustrated by the lack of progress in the restructuring talks,” White & Case said.
Satmex agreed to the restructuring in order to avoid an involuntary bankruptcy proceeding filed in May in the United States by the company’s U.S.-based creditors. Satmex filed for concurso mercantil, a proceeding in Mexico similar to a bankruptcy proceeding in the United States, in June, and the U.S. creditors agreed to withdrew their bankruptcy petition in July in favor of the voluntary restructuring.
Satmex has until Oct. 31 to present a draft plan to the U.S. Bankruptcy Court for the Southern District of New York. If the company fails to meet the deadline, the forced bankruptcy case could be reinstated and heard by a judge. “Such litigation could be costly in many ways to all parties involved, so my job is to help move the process forward as efficiently as possible with a plan that works for everyone,” Heather said.
