Mexico’s TV Azteca Files for Bankruptcy Amid Major Tax Settlement and Escalating U.S. Creditor Disputes

By Gonzalo Bugeda Salido and Steven D. Jerome

Executive Summary

TV Azteca, Mexico’s second-largest television broadcaster, filed a petition for bankruptcy relief under Mexican law after announcing in late February that it would seek to reorganize. The petition was formally admitted on March 20, 2026, comes amid significant financial pressure on two fronts: (i) a tax settlement with Mexican authorities requiring payment of more than $1.7 billion in installments, and (ii) ongoing litigation in New York arising from TV Azteca’s default on $400 million in unsecured notes issued in 2017 and guaranteed by 34 of its subsidiaries.

The New York dispute has unfolded alongside parallel proceedings in Mexico for several years. TV Azteca’s concurso mercantil filing is significant not only because of the company’s size, but also because of the potential cross-border consequences of the Mexican restructuring. If the Mexican bankruptcy court ultimately approves a restructuring plan, TV Azteca may seek Chapter 15 recognition in the U.S. of relief granted in Mexico. That possibility is especially important because Mexican insolvency law may permit nonconsensual third-party releases that could extend to TV Azteca’s subsidiary guarantors in the U.S., even though comparable relief is generally unavailable in a U.S. Chapter 11 case after the landmark Supreme Court decision in Harrington v. Purdue Pharma.

As a result, the TV Azteca concurso mercantil proceeding could become an important test of how far foreign insolvency proceedings may affect creditors’ rights, guaranty enforcement, and pending litigation in the U.S. For creditors, investors, and restructuring professionals, the case warrants close attention as a potentially consequential development in cross-border insolvency practice between Mexico and the U.S.

Introduction

TV Azteca, Mexico’s second-largest television company, filed for relief under Mexican bankruptcy law on March 10, 2026, following a public announcement it made in late February.¹ Docketed as Case No. 22/2026 before the First Bankruptcy Court in Mexico City, one of only two bankruptcy courts in Mexico with nationwide jurisdiction, the proceeding was formally admitted on March 20, 2026.²

The decision to seek reorganization follows a decade-long tax dispute with Mexican authorities that resulted in a settlement requiring TV Azteca to pay more than $1.7 billion (MX$32 billion) in 18 installments, with the first payment exceeding $500 million (MX$10 billion) made on January 29, 2026.³

New York Litigation

TV Azteca is also involved in a dispute over US$400 million in the Southern District of New York arising from its failure to make certain payments under Unsecured Notes issued by TV Azteca in 2017, and guaranteed by 34 of its subsidiaries with the Bank of New York (BNY) Mellon acting as indenture trustee.

The Notes were scheduled to mature in 2024. However, in February 2021, during the Covid pandemic, TV Azteca announced that it would stop making the required interest payments on the Notes. This announcement was followed by a notice of acceleration issued in May 2022 by holders of more than 25 percent of the aggregate principal amount of the outstanding Notes.⁴

Months later, in July 2022, TV Azteca filed complaints against certain noteholders seeking declaratory relief invalidating the notice of acceleration, and obtained an injunction prohibiting noteholders from pursuing proceedings aimed at collecting the unpaid principal on the Notes.⁵ Despite this development, in August 2022, BNY filed a motion for summary judgment in lieu of complaint against TV Azteca and its 34 subsidiary guarantors, alleging default under the Notes, which was later removed to the District Court for the Southern District of New York.⁶

A month later, in September 2022, TV Azteca filed a complaint directly against BNY in the courts of Mexico City, seeking declaratory relief that the May 2022 notice of acceleration was unenforceable. TV Azteca argued that performance under the Notes had become impossible because of the Covid pandemic under a force majeure theory.⁷

In March 2023, certain noteholders filed involuntary Chapter 11 petitions against TV Azteca and its guarantors in the Bankruptcy Court for the Southern District of New York. The petitions were later dismissed, allowing TV Azteca to avoid Chapter 11 proceedings, although it remained exposed to civil litigation in New York.⁸

After further parallel cross-border litigation, on June 28, 2024, BNY files a motion in the District Court for the Southern District of New York seeking to enjoin TV Azteca from continuing or initiating any claims in Mexico relating to the Notes, which the court granted on September 22, 2025.⁹

In February, TV Azteca announced that it would imminently seek bankruptcy relief under Mexican law. In response, BNY asked the District Court to allow the case against the subsidiary guarantors to proceed unless a stay was properly obtained under U.S. law, and questioned whether TV Azteca’s anticipated bankruptcy filing constituted forum shopping.¹⁰

The Mexican “Concurso Mercantil” Bankruptcy Proceeding and Why It Is Relevant

Upon admitting the case, the First Bankruptcy Court in Mexico City entered an initial stay, granted precautionary measures aimed at protecting TV Azteca’s assets, and ordered the appointment of a visitor to evaluate whether TV Azteca meets the insolvency requirements for relief under Mexican law and to submit an expert report for the court’s consideration.

If the Mexican Bankruptcy Court determines, after reviewing the visitor’s expert report, that the insolvency requirements have been met, it will declare TV Azteca in bankruptcy, known in Mexico as concurso mercantil, and will initiate the “conciliation” phase. This phase lasts an initial 185 days and may be extended twice for an additional 90 days each. During this period, TV Azteca will attempt to negotiate substantial reductions in creditor claims to avoid liquidation, which will occur if no restructuring agreement is reached within the maximum 365-day period.

Given the ongoing $400-million dispute in the U.S., TV Azteca will likely seek Chapter 15 recognition of any discharge obtained through the Mexican concurso proceedings. Mexican law allows nonconsensual third-party releases, which may be sought to release TV Azteca’s 34 subsidiary guarantors in the U.S., and such releases may be enforceable in the U.S. through Chapter 15 recognition, even though they would not be ordinarily available in a U.S. Chapter 11 case after the landmark Supreme Court decision in Harrington v. Purdue Pharma.¹¹

However, two post-Purdue opinions recognized and enforced foreign reorganization plans containing nonconsensual third-party releases: (i) In re Credito Real, S.A.B. de C.V., SOFOM, E.N.R.,¹² enforcing nonconsensual third-party releases obtained in a Mexican-court-approved reorganization plan; and (ii) In re Odebrecht Engenharia e Construcao S.A. – Em Recuperacao Judicial,¹³ holding that Bankruptcy Courts have the power to enforce nonconsensual third-party releases obtained in a Brazilian-court-approved reorganization plan.

Conclusion

TV Azteca’s filing is more than a major Mexican insolvency case. It is a developing cross-border restructuring with potentially significant implications for creditors pursuing claims in the U.S. The concurso mercantil proceeding will test whether Mexican bankruptcy law can be used to restructure not only TV Azteca’s domestic obligations, but also its foreign liabilities and those of its subsidiary guarantors, including through the possible use of nonconsensual third-party releases that would not ordinarily be available in a U.S. Chapter 11 case after Purdue Pharma. In light of recent Chapter 15 decisions enforcing similar foreign-court-approved releases, the case warrants close attention. Its outcome may shape the extent to which foreign restructuring proceedings can alter creditor rights and litigation strategy on both sides of the border.