A U.S. judge has dismissed an involuntary bankruptcy case against TV Azteca, a Mexican broadcaster owned by billionaire Ricardo Salinas Pliego, following a petition by bondholders over missed payments.
Judge Lisa G. Beckerman’s decision, published on Monday evening and reviewed by Reuters, granted TV Azteca’s motion to dismiss on the grounds that the claims of the petitioning creditors are genuinely disputed. According to the decision, the petitioning creditors cannot disclaim their entitlement to a redemption premium to avoid a bona fide dispute.
In 2017, TV Azteca issued $400 million in unsecured notes, and creditors allege that the broadcaster began missing payments in 2021. However, a spokesperson for TV Azteca declined to comment on the matter.
In March, three creditors – Plenisfer Investments SICAV, Cyrus Capital Partners, and Sandpiper Ltd – filed a petition in the United States for TV Azteca to enter bankruptcy involuntarily, claiming the broadcaster owes $63.32 million. They are represented by the New York law firm Akin Gump, which also represented bondholders in a similar suit against Mexican nonbank lender Credito Real CREAL.MX.
The dismissal of the bankruptcy case against TV Azteca comes as a significant development in the ongoing legal battle between the broadcaster and its creditors, shedding light on the intricacies of financial disputes in the media industry. This news also raises questions about the financial stability of major media companies in Mexico and their interactions with international creditors. As the situation continues to evolve, all eyes will be on the actions and decisions of TV Azteca and its creditors.
