Lender Salinas TV Azteca wants to transfer the case to new judge

(Bloomberg) – Attorneys represent U.S. lenders in a long-term case against Mexican billionaire Ricardo Salinas Pliego, a broadcaster TV Azteca, seeks to transfer the lawsuit to a new judge as they try to restore a billion dollars in debt.

Akin Gump Strauss Hauer & Feld asked the court to update the case to reflect the $400 million in the case matured in August without repayment, according to a filing in federal court on Friday. Or, the holders of most notes demand that Judge Paul Gardephe be removed from the case in favor of another judge.

“The ongoing solution has caused harm to the holders of notes who cannot recover the now mature notes,” the document said.

The company owes creditors a total of $500 million, including unpaid interest. Holders of the bond include funds related to Cyrus Capital Partners, Contrian Capital Management and Fidelity Investments.

Akin Gump declined to comment on the story.

The case was sold in 2017 TV Azteca, the producer of Spanish-language soap operas and reality shows, spinning about $400 million on unsecured unsecured times. The company defaulted in 2021, and the attempt by creditors to force it into involuntary bankruptcy was dismissed to dismiss the ongoing court dispute.

In Mexico, Salinas also fought for a ban against the country’s president, Claudia Sheinbaum, who won a ban that prevented financial authorities from exploring their bank and brokerage accounts. He recently announced a plan to fit his flagship company, Grupo Elektra Sab, from the public market to run the conglomerate where he sees fit.

Earlier this month, Paul Weiss, a long-time attorney for the Salinas-owned company, withdrew legal representatives from Aztecka TV, targeting bondholders, and was replaced by Greenberg Traurig.

“Based on the strong financial restructuring we announced four years ago and our openness and willingness to talk to U.S. bondholders, we decided to strengthen the team responsible for this restructuring by adding Greenberg Troauurig to the ship,” said Luciano Pascoe, spokesman for Grupo Salinas.

Paul Weiss did not respond to a request for comment, while Greenberg Traurig declined to comment.

Aztecka TV creditors claim that the Mexican court has already bid for Salinas. In 2023, the company won a Mexican court order that prohibits bond payments until the pandemic ends. Creditors said the court withheld justice because it did not give them a chance to object to the move, saying it violated Mexico’s obligations to U.S. investors under the trade agreement. The program is in progress.

See: Pandemic call shoots Azteca bondholders who default on contract

In the latest lawsuit in the Mexican court, Aztecka TV filed the charges of “alleged false statements” by the country’s plaintiff’s legal representative in Mexico, with its power of attorney allegedly filed in New York.

A New York City Court (NAFTA) lawsuit in the Mexican court said: “Mexican courts must engage in a Kafka-style struggle in the Mexican court.”

– Assistance with Michael O’Boyle.

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