Mexican Tourism Company Files For Chapter 15 Bankruptcy In U.S.A.
Cozumel Caribe SA, a company that books and arranges tours and other travel services at a coastal hotel in Mexico, submitted all necessary paperwork to begin bankruptcy proceedings in a U.S. court last week. Its primary reason for filing was a sharp decline in American tourists visiting the hotel. In its Chapter 15 bankruptcy petition, which was filed at the U.S. Bankruptcy Court in Manhattan, it listed a debt of more than $100 million and assets of more than $10 million. Chapter 15 of the United States Bankruptcy Code protects foreign corporations from U.S. creditor claims and lawsuits while they reorganize in their own home countries.
Nemias Esteban Martinez Martinez, a representative of Cozumel Caribe SA, was quoted as saying, “The recent world recession and crisis in the Mexican tourism sector has brought about a reduction in the flows of cash.” According to court papers, Cozumel Caribe SA provides tourism services through the Hotel Park Royal Cozumel in Cozumel, Mexico.
The U.S. Bankruptcy Code, which is a comprehensive definition of all forms of bankruptcy, defines Chapter 15 as a foreign corporate bankruptcy filing, by means of which a foreign corporation that is already reorganizing in its home country, can gain use of the U.S. courts to protect themselves from U.S. creditors. Chapter 15 is founded on the Model Law on Cross-Border Insolvency propagated by the United Nations Commission for International Trade Law, which is also known as UNCITRAL. Other countries that have adopted legislation that has likewise been based on the UNCITRAL Model Law on Cross-Border Insolvency are Eritrea, Japan (2000), Mexico (2000), Poland, Romania (2003), South Africa (2000), and within Serbia and Montenegro, Montenegro (2002). According to experts, the enactment of Chapter 15 is an experiment in globalization that will have a great impact on the global economy.
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