What is PEMEXs pecking order?
The Ley de Concursos Mercantiles (in USA, Title 11- Bankruptcy) does not allow any state owned company, as PEMEX, to be declared in bankruptcy. According to the Law, PEMEX’s liquidation or extinction must be established by a Congress decree settling the form and terms of the liquidation or extinction and the pecking order. As a reference and considering that the Congress may decide otherwise in such case, the pecking order established by the Ley de Concursos Mercantiles for Mexican companies is: 1.Workers’ salaries and indemnifications 2.Administration expenses, associated with liquidating the bankrupt’s assets 3.Judicial or extrajudicial expenses 4.The trustee’s fee 5.Creditors with singular privilege 6.Creditors with real guarantee 7.Labor credits (other than workers’ salaries and indemnifications) 8.Fiscal credits 9.Creditors with a special privilege 10.Usual creditors However, as PEMEX could not be declared in bankruptcy, the Congress would determine the mechanic of the pecking ord
