Mexican Lender Restructuring Nets Signoff in US Despite Releases

A New York bankruptcy judge granted recognition of a foreign restructuring for a Mexican lender that includes a narrow type of controversial litigation release struck down last year by the US Supreme Court for the owners of Purdue Pharma LP.

The English restructuring of Mega Newco Ltd., a subsidiary of Mexican non-bank lender Operadora de Servicios Mega SA, was approved with nonconsensual releases for third parties that aren’t bankrupt themselves, according to a decision issued Monday by Judge Michael E. Wiles of the US Bankruptcy Court for the Southern District of New York.

The Jalisco-based company sought recognition in November ...