Banlinea: Corporate Restructuring and Risk Mitigation in Mexico

From financial crisis to corporate stability: how OZM helped Banlinea regain control, reduce debt and eliminate legal risks.

The Challenge

Banlinea, a Colombian fintech in the process of expanding into Mexico, faced a corporate crisis that threatened its financial and operational stability.

One of the company’s partners had moved to Mexico to open a subsidiary, but the management was not adequate, which generated a serious legal and financial mess. Banlinea not only accumulated a debt of more than US$300,000 tripling the budget available to cover the debts, but was also exposed to possible lawsuits for payment defaults.

In addition, the partner in Mexico still had the authority to sign documents, which put the company at risk, as it could continue to financially compromise the subsidiary. The situation required urgent and strategic intervention to regain control and avoid further legal complications.

Our Strategy

The OZM Legal & Business Consulting Services team designed an action plan focused on corporate recovery and legal risk reduction. The strategy included:

  • Revocation of powers of attorney: The partner in Mexico was removed from the company to prevent him from continuing to legally compromise the company.

  • Corporate restructuring: Lost documents were recovered and the corporate structure was reorganized.

  • Bank account management: Existing bank accounts were terminated and new ones were opened, ensuring that the company regained full control of its finances.

  • Debt negotiation: A plan was implemented to reduce the company’s debts, achieving renegotiations of up to 60% of the original debts with suppliers.

  • Release of Liability: Signed liability release letters were obtained from all suppliers, ensuring that Banlinea was free of outstanding commitments.

Throughout the process, OZM worked at every stage with a preventive and strategic approach, ensuring that Banlinea could once again operate without risk.

The outcome

Thanks to OZM’s intervention:

  • The partner’s powers of attorney in Mexico were revoked, eliminating future risks.
  • Banlinea regained full control over its subsidiary and its operations.
  • The company settled its debt by negotiating up to a 60% reduction in the original amounts.
  • All suppliers signed payment and release of liability agreements.
  • The risk of lawsuits for non-compliance was eliminated.

Today, Banlinea operates with a strengthened corporate structure, no outstanding debts with suppliers and a stable legal base in Mexico.