Satmex bankruptcy hearing set for 29 July

18 Jul 2005

The bankruptcy hearing for troubled Mexican satellite operator Satmex has been set for 29 July. Judge Robert Drain concluded there was ‘sufficient cause’ to hear the case for a bankruptcy process under US law, after US creditors representing at least USD379 million of Satmex’s USD523 million debt in default since 2003 filed for Chapter 11 bankruptcy at the end of May in an attempt to restructure its finances. A month later, however, Satmex filed for bankruptcy under Mexican law (a process known as concurso mercantile), arguing that a US bankruptcy deal could be detrimental to ‘Mexican sovereignty and national security’, given that the Mexican government grants rights for orbiters and because the company has no registered base in the US. Satmex now has until 28 July to respond to the judge’s ruling, while its creditors have until 26 July to present their counter arguments to Satmex’s petition to have the US bankruptcy filing dismissed.