Mexico's TV Azteca In Talks With U.S. Creditors

TV Azteca SAB will engage in discussions with US bondholders owed $400 million after a US judge warned Mexico's second-largest broadcaster that it could be compelled to participate in a bankruptcy case in New York, Steven Church reported for Bloomberg News.

TV Azteca opposes a US bankruptcy and has used court rulings in Mexico to attempt to block bondholders from collecting on the defaulted bonds. I Photo: NINO CAPISHI Wikimedia Commons

US Bankruptcy Judge Lisa G. Beckerman informed the company that it was evident to her that TV Azteca needed to restructure its debt, despite strong resistance from the company.

TV Azteca opposes a US bankruptcy and has used court rulings in Mexico to attempt to block bondholders from collecting on the defaulted bonds.

"Your stance against restructuring is not finding favor with me," Beckerman told TV Azteca. "It is one thing to argue against restructuring in the US, and it's another to evade restructuring."

Beckerman stated that she would postpone a ruling on whether she should force the producer of some of the most-watched Spanish-language shows to participate in a bankruptcy case in New York brought by US bondholders.

WEEKLY FEATURE : Jose Mari Chan And The Christmas Anthem