MEXICO CITY, Feb 26 - Shareholders of Mexican broadcaster TV Azteca have approved a voluntary bankruptcy process intended to restructure the company's finances and outstanding liabilities, the company announced on Thursday.
Company management said the decision to open the bankruptcy proceedings reflects a combination of financial strains. Those include the impact of license payments made to the government in 2018, disruptions from the COVID-19 pandemic, what the company described as a "complex negotiation" with international creditors, and the recent discharge of multiple years of taxes owed to Mexican authorities.
In a statement, TV Azteca's chief executive Rafael Rodriguez framed the move as a protective measure. "This is a last-resort tool aimed at preserving the value of the company, ensuring the continuity of its operations, and facilitating the orderly fulfillment of its obligations without interrupting its functioning," he said.
The broadcaster's shares have been suspended on the Mexican stock exchange since 2023 after the company failed to meet its obligation to present corporate results. The suspension remains in place as the firm begins the voluntary bankruptcy process.
The company described the bankruptcy route as intended to preserve operational continuity while providing a structured environment to address creditor claims and other liabilities. Shareholders voted in favor of the voluntary procedure as part of management's strategy to stabilize the business and work through outstanding financial commitments.
TV Azteca attributed the need for the restructuring to a sequence of financial pressures that accumulated over recent years. Management cited the 2018 license payments and pandemic-related impacts alongside ongoing negotiations with international creditors and the recent payment of years of owed taxes to Mexican authorities as the primary factors shaping the decision.
The company emphasized that the voluntary bankruptcy process is a tool designed to enable orderly fulfillment of obligations without disrupting day-to-day operations. The statement reiterated that the measure aims to preserve corporate value and ensure continuity for the broadcaster while liabilities are restructured.
Summary
Shareholders of TV Azteca have approved a voluntary bankruptcy process to restructure the company’s finances and liabilities, citing license payments in 2018, the COVID-19 pandemic, complex negotiations with international creditors, and recent tax payments as drivers. Management says the step is intended to preserve value and maintain operations while obligations are addressed. Trading in the broadcaster’s shares has been suspended since 2023 after the company missed a reporting obligation.