An involuntary bankruptcy against Mexico’s TV Azteca has been dismissed, with a bankruptcy-court judge saying that the multimedia conglomerate and its bondholders are involved in a dispute that must play out in U.S. district court, WSJ Pro Bankruptcy reported. TV Azteca had been sued over missed payments to bondholders in a case in district court, and then earlier this year an involuntary bankruptcy petition was filed by a group of bondholders in bankruptcy court. Arguing for dismissal of the bankruptcy petition in August, TV Azteca said the sides are in a bona fide dispute, making the involuntary filing improper. It also said the involuntary petition was filed as a tactical maneuver related to a matter pending in another court, and that the U.S. involuntary bankruptcy would hurt the company. To the extent that an in-court reorganization should occur, it should happen in Mexico, TV Azteca said. In Monday’s ruling, Judge Lisa Beckerman said that TV Azteca’s motion to dismiss points to “the district court action as the evidence that the petitioning creditors’ claims are subject to a bona fide dispute.” “The parties specifically agreed in the indenture to submit to the exclusive jurisdiction of the state and federal courts located in the Borough of Manhattan with respect to any disputes regarding the notes and the indenture,” the ruling said. The fight stems from $400 million in unsecured bonds that TV Azteca issued in 2017. Beginning in early 2021, it missed several interest payments, primarily blaming the impact of the COVID-19 pandemic. Last year, certain investors including Contrarian Capital, Invesco and the State Teachers Retirement System of Ohio said the bonds were in default and demanded that interest and principal on the 2024 notes be paid in full.
