Crédito Real Restructuring Nets US Recognition Despite Objection

A Delaware bankruptcy judge will recognize the foreign restructuring of Mexican lender Crédito Real SAB de CV, despite objections based on last year’s US Supreme Court decision that struck down nonconsensual liability releases.

Judge Thomas M. Horan of the US Bankruptcy Court for the District of Delaware said during a Tuesday hearing that he will grant recognition of the cross-border plan under Chapter 15 of the US Bankruptcy Code, which governs foreign restructurings with ties to the US.

He recognized the plan, which includes releases for nonbankrupt third parties, despite concerns raised by two US federal agencies citing the high court’s ...