Mexico's Salinas-controlled TV Azteca announces bankruptcy proceedings

MEXICO CITY, Feb 26 (Reuters) - Mexican broadcaster TV Azteca said on Thursday that shareholders had approved a voluntary bankruptcy process for restructuring the company's finances and liabilities.

TV Azteca, controlled by Mexican business magnate Ricardo Salinas Pliego, blamed the bankruptcy process on multiple factors: the recent payment of nearly $2 billion in back taxes to Mexican authorities, a "complex negotiation" with international creditors, the pandemic and the impact of license payments to the government in 2018.

The company also pointed to "profound transformations" in the television industry, including changes in the advertising market. TV Azteca is one of Mexico's most-watched broadcasters.

“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,” Rafael Rodriguez, TV Azteca's CEO, said in a statement.

Trading in the broadcaster’s shares on the Mexican stock exchange has been suspended since 2023, when the company failed to file its corporate results.

Salinas, a conservative, has had fights with left-wing President Claudia Sheinbaum and her allies over the past year amid a public feud over his back taxes. Sheinbaum repeatedly accused Salinas of being a tax dodger; he accused the government of extortion.

Sheinbaum's government had threatened to seize assets and revoke broadcast licenses if Salinas did not pay. The president has made an aggressive push to increase tax revenue to fund an expanding slate of social programs.

Last month, Salinas' conglomerate Grupo Salinas said it would pay 32 billion Mexican pesos ($1.86 billion) to conclude 20 years of tax disputes with the Mexican government. Sheinbaum had previously said his companies owed more than $4 billion.

($1 = 17.2340 Mexican pesos)