Crédito Real Beats Appeal of US Court’s Liability Shield Ruling

A Delaware federal judge affirmed a bankruptcy court order recognizing the Mexican lender Crédito Real SAB de CV’s bankruptcy proceedings that featured third-party liability shields.

US bankruptcy courts can give effect to orders in recognized foreign proceedings under Chapter 15, which governs cross-border restructurings, even if those orders contain relief unavailable under US law, Chief Judge Colm F. Connolly of the US District Court for the District of Delaware wrote in a Tuesday opinion.

The US International Development Finance Corp. had appealed bankruptcy judge Thomas M. Horan’s March 2025 order recognizing Crédito Real’s Mexican insolvency plan. The government agency relied ...