Famsa Resorts to Mexico Bankruptcy After Chapter 11 Derailed (2)

Mexican furniture and appliance dealer Grupo Famsa SAB will no longer pursue Chapter 11 proceedings in the U.S., and has instead filed for bankruptcy protection in Mexico in a surprising about-face for the company.

Famsa said that it will engage with creditors through a local process known as a concurso mercantil, after the loss of its banking license derailed efforts to restructure in U.S. courts.

Separately, the company filed a Chapter 15 petition in New York that would shield assets in the U.S. during the process in its home country. The decision puts both Famsa and its creditors in a ...