Mexico Law Blog

Case Numbers for Bank Lawsuits Filed Against Controladora Comercial Mexicana in New York State Courts

John Dorsey — Thu, 20 Nov 2008 15:24:21 +0000

As discussed in November 12, 2008 Mexico Law Blog post, JP Morgan Chase and several other banks have filed lawsuits against Mexican supermarket operator Controladora Comercial Mexicana (CCM) (MXK: COMERCIUBC) alleging breach by CCM of its exchange-rate derivative contracts.

We have not yet had the opportunity to review the court filings, but based on our own research, as of November 14, 2008, the claims against CCM in New York state courts appear to consist of the following:

JP Morgan Chase Bank N.A. v. Controladora Comercial Mexicana, filed on November 6, 2008, New York County, Case Number 603215/2008.
Barclays Bank PLC v. Controladora Comercial Mexicana, filed on November 6, 2008, New York County, Case Number 603233/2008.
J Aron & Co v. Controladora Comercial Mexicana, filed on November 6, 2008, New York County, Case Number 603225/2008.
Merrill Lynch Capital Svcs Inc. v. Controladora Comercial Mexicana, filed on November 6, 2008, New York County, Case Number 603214/2008.

Grupo Elektra Magnate Ricardo Salinas Pliego May Increase Stake in Circuit City

John Dorsey — Thu, 20 Nov 2008 14:49:03 +0000

Mexican entrepreneur Ricardo Salinas Pliego, who recently purchased a 28.5% stake in struggling electronics retailer Circuit City, may increase his stake to become the company’s largest shareholder and is considering the purchase of the company to take it out of bankruptcy, according to a Sentido Comun report. Salinas Pliego is the majority owner of Mexican appliance retailer Grupo Elecktra, which also owns Mexican bank Banco Azteca.

Both Grupo Elektra and Banco Azteca are affiliated with Grupo Salinas, which has no equity holdings but operates as a management entity and decision forum for the executives of Grupo Salinas member companies, which also include TV Azteca, Azteca America, Seguros Azteca, Afore Azteca, Iusacell, Unefon, Movil@ccess, and Azteca Internet.

Mexico Law Blog Newsletter to be Issued Weekly; No Longer Every Four Posts

John Dorsey — Thu, 20 Nov 2008 14:33:22 +0000

Mexico Law Blog’s newsletter will now be issued once per week, not every four posts as previously issued. It is hoped that the new issuance schedule will reduce email congestion for subscribers.

Ricardo Cardenas Opens Carl’s Jr.’s 100th Restaurant in Mexico

John Dorsey — Thu, 20 Nov 2008 14:28:30 +0000

U.S. franchise operator CKE has announced that licensee Ricardo Cardenas has opened the franchise’s 100th Carl’s Jr. restaurant in Mexico, according to a Business Wire press release.

PayPal Launches Mexican Website; Allows Payment in Pesos

John Dorsey — Thu, 20 Nov 2008 14:23:14 +0000

Electronic payment facilitator PayPal, a subsidiary of eBay, has launched its website in Mexico, according to a Sentido Comun report. The website enables consumers and businesses to make secure payments in Mexican currency with credit cards or through bank accounts (via ACH), as well as deposit and transfer funds. PayPal’s Mexican website is www.paypal.com.mx.

Christmas Comes Early for Farmacias Benavides Shareholders: Company to Pay Dividend on December 8, 2008

John Dorsey — Thu, 20 Nov 2008 14:17:03 +0000

Monterrey-based Farmacias Benavides (MXK: BEVIDESB), one of the largest drug store chains in Mexico, announced that its shareholders have approved the payment of a dividend of approximately US$0.10 cents per share.

The dividend payment, which represents a total disbursement of MX$40.8 million pesos (approximately US$3.1 million), will be made on December 8, 2008.

Newspaper Offices in Culiacan, Sinaloa Attacked With Grenades

John Dorsey — Thu, 20 Nov 2008 14:00:26 +0000

The offices of Culiacan, Sinaloa newspaper El Debate were the subject of a midnight gun and grenade attack on Sunday, November 16, 2008, according to a report by Jeremy Schwartz’s Uncovering Mexico blog. No was injured in the attack, which is believed to have been a reprisal by a drug cartel against the newspaper.

The report also reflected upon a wave of recent assasinations of individuals involved in the free press, all of which are also believed to have been perpetrated by the cartels.

Last week, Armando Rodriguez, a crime reporter for El Diario in Ciudad Juarez was shot and killed in front of his home as he waited to take his daughter to school.
In September, radio host Alejandro Fonseca was killed in the southern state of Tabasco as he hung political banners denouncing a wave of kidnappings in his state.
In April, two radio reporters were killed in Oaxaca.

Mexican Scientist Mario Molina to Lead President-Elect Obama’s Science-Technology Transition Team

John Dorsey — Thu, 20 Nov 2008 13:43:42 +0000

Nobel Prize winning Mexican scientist and leading climate change expert Mario Molina will lead the science and technology group of President-Elect Barack Obama’s transition team, according to a report at Jeremy Schawart’s Uncovering Mexico blog. Mr. Molina teaches chemistry at the University of California-San Diego.

Molina, who is frequently quoted in the Mexican press, has been a tireless advocate of for alternative energy sources in Mexico and a champion of reversing Mexico City’s pollution problems, the report said.

Slim Says Fat Chance for U.S. Automakers, Suggests Chapter 11

John Dorsey — Wed, 19 Nov 2008 15:22:46 +0000

Mexican billionaire Carlos Slim offered his views to reporters regarding U.S. auto industry, health care, and other issues in an interview in San Antonio on November 18, 2008, summarized a Houston Chronicle report.

With respect to the auto industry, Slim suggested that struggling companies should file for Chapter 11 bankruptcy protection and renegotiate uncompetitive labor union contracts in exchange for giving workers company shares. This is a suggestion lawmakers on Capitol Hill may wish to bear in mind today as they listen to pleas from auto industry executives for a US$25 billion slice of the US$700 billion Troubled Asset Relief Program (TARP).

Cemex Retains Five International Banks to Help it Obtain New Credit Lines; Amend Existing Credit Facilities

John Dorsey — Mon, 17 Nov 2008 15:17:12 +0000

Cemex, S.A.B. (NYSE: CX), the world’s third largest cement maker, has hired five international financial institutions to help it obtain new credit lines and negotiate amendments to its existing credit facilities, according to a Sentido Comun report.

The banks retained are Banco Bilbao Vizcaya Argentaria (BBVA), HSBC, RBD and Banco Santander.

The announcment forms part of the company’s efforts to extend the maturity dates on its credit lines and buy time to restructure its operations as revenues decrease amid a possible global recession. Cemex is also hoping to exchange approximately US$429 million in peso denominated bonds that mature in the next few months for bonds that mature in September 2011.