On February 14, 2008, Goldberg Kohn conducted a teleconference for the Commercial Finance Association regarding secured lending in Mexico. The teleconference was presented by Richard Kohn and Jonathan Cooper of Goldberg Kohn; Hugo Cuesta of Cuesta Campos; Arnie Dratt of Hilco Appraisal Services and Ildefonso Acevedo of Hilco Acetec.
As a result of NAFTA and lower wages in Mexico, during the past several years U.S. companies have shifted significant production and assembly operations from the U.S. to Mexico. U.S. asset-based lenders have been reluctant to finance these operations because of concerns regarding Mexican secured transactions laws and enforcement procedures.
In recent years, in connection with the Mexican government's desire to attract foreign capital, substantial improvements have been made to the Mexican secured transactions laws and enforcement procedures. These developments were discussed in length during the teleconference.