Not in Mexico. google:"Peña seeks to end loopholes in bankruptcy law" :
"Investors have exacted the premium in part because of concern Mexican companies may use intercompany debt to become their own biggest creditors in restructurings, a strategy exploited by glassmaker Vitro SAB"
The bondholder group is willing to fund a new business plan for Culiacan-based Homex but so far efforts to work with the Mexican banks haven’t succeeded, this person said. Plans may materialize in the coming months after the bondholder group has access to more information on the company, this person said.
-- WSJ 21 Aug 13, Moneybeat
Yes, I agree. Rating agencies are usually conservative and thus lower in their assessment. Fitch also said the recovery of Vitro was going to be around 30% to 50% I believe. Vitro filed bankruptcy back in '09. Now their bonds are trading 83 cents. So, Fitch was totally off.
I actually think both bonds and stocks are going to do well in the long run. Of HXM holdings, my breakout is currently 90% bonds and 10% stocks. I was going to buy more HXM common if it hit below $1, but never got there. If HXM files bankruptcy as a result of inability to move forward with its bankers, I am going to buy more common.
In the meantime, I am going to accumulate more bonds. I have been trying to get some below 20cents.