Mexican Paper Giant Folds Under Economic Stress

Law360, New York (October 7, 2008, 12:00 AM EDT) -- Facing accrued liabilities of nearly $1.5 billion and rising energy costs, Corporacion Durango SAB, Mexico’s largest paper maker, has filed for bankruptcy protection simultaneously in the U.S. and Mexico.

Unable to pay a $26.5 million interest payment on senior notes due earlier this week, the company filed for reorganization under the Mexican Business Reorganization Act, or “Concursos Mercantiles,” in Mexico on Monday while concurrently filing for Chapter 15 protection in the U.S. Bankruptcy Court for the Southern District of New York and asking the court to...
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