Creditors of Satelites Mexicanos (Satmex) filed an involuntary bankruptcy involuntary bankruptcy
Bankruptcy that is forced by creditors instead of being initiated by the firm or individual. Compare voluntary bankruptcy. See also Chapter 7, Chapter 11. petition in an attempt "to force the troubled Mexican satellite venture to reorganize re·or·gan·ize
v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es
To organize again or anew.
To undergo or effect changes in organization. and restructure US$523 million of overdue debt," Financial Times reported.
The Chapter 11 petition--filed in a bankruptcy court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. in the Southern District of New York--seeks to have the customary waiting period waived after Satmex first defaulted on payments nearly two years ago.
Creditors holding two-thirds of the company's debt also hold a debt agreement for up to US$55 million to fund the launch of Satmex's third satellite, which has been in storage in French Guiana French Guiana (gēăn`ə, –än`–), Fr. La Guyane française, officially Department of Guiana, French overseas department (2005 est. pop. for a year-and-a-half. They agreed to offer the money to the satellite so that it could be launched as part of the restructuring agreement, El Universal reported. Satmex has 20 days to respond to the petition (filed on May 25). The court filing follows an unsuccessful debt restructuring Debt Restructuring
A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage.
Notes: negotiation with Mexico's Secretariat of Communications and Transportation.
The satellite company's overall debt is roughly US$800 million and it owes the Mexican government over US$190 million.