TV Azteca seeks U.S. bankruptcy protection to restructure debt

TV Azteca has filed a petition in a New York bankruptcy court seeking recognition of its insolvency proceedings initiated in Mexico last March. Under Chapter 15 of the U.S. Bankruptcy Code, the broadcaster aims to extend protections against creditors while it attempts to restructure debts totaling nearly 24 billion pesos.

The company is currently involved in litigation regarding 630 million dollars in unpaid debt bonds from 2021. In its petition, TV Azteca stated the request is intended to prevent creditors from pursuing funds outside the insolvency process, which it claims threatens the fair treatment of all creditors. The case has been assigned to Judge Lisa G. Beckerman.

Creditors have raised allegations regarding a 290 million dollar loan negotiated with Alter Bank Limited, a Saint Lucia-based institution, just five weeks before the Mexican insolvency filing. Creditors allege the financing was fraudulent and that TV Azteca gave preferential treatment to this debt. Additionally, they claim the company moved its broadcasting concessions to a subsidiary, TV Azteca III, which is not included in the insolvency proceedings.