Vitro Begins Appeal Arguments Today
October 3, 2012
by Casey Neeley, email@example.com
Vitro SAB began arguing its appeal case today following a June decision by a Texas bankruptcy court, which ruled against the enforcement of Vitro's Mexican Plan of Reorganization in the United States.
In the June ruling, the judge had stated that "such [an] order manifestly contravenes the public policy of the United States and is also precluded from enforcement under 1507, 1521 and 1522 of the Bankruptcy Code." The company announced its intention to appeal the case in late June.
In a reply brief filed September 28, counsel for Vitro argues that “the bankruptcy court refused to enforce the ConcursoApproval Order solely because, in full compliance with applicable Mexican law, the ConcursoPlan replaced the Old Guarantees with guarantees of the New Notes issued by reorganized Vitro SAB on the basis that a similar plan could not have been approved in a Chapter 11 case in this Circuit. In doing so, the bankruptcy court misapplied the law and imposed a standard inconsistent with Chapter 15.”
Counsel for Vitro requests in the September 28 reply brief, “this court should conclude that the ConcursoApproval Order is entitled to enforcement in the United States. Every court to consider the issue has found that the LCM [Ley de Concursos Mercantiles] provides a fair restructuring process consistent with Chapter 15’s requirements and that decisions based on that law are worthy of respect.”
Further, Vitro’s counsel writes in the brief, “the Appellees are really asking this court to protect them from the decision of the Mexican Court simply because they lost there.”
“The Appellees mischaracterize Vitro SAB’s position as an ‘impassioned’ but misplaced ‘appeal to comity’ aimed at convincing this Court to blindly ‘apply the laws of Mexico in proceedings in this country,’” reads the brief. “That is not the case. Vitro SAB only asks that this Court properly apply section 1507.”
“The Bankruptcy Court failed to conduct a thorough analysis of section 1507; it did not even mention the first three of the four applicable factors in its opinion,” counsel further alleges.
In the original appeal brief filed in August, counsel for Vitro also alleged, "because the bankruptcy court misinterpreted and misapplied Chapter 15 in its consideration of the enforceability of the Concurso Plan, this court must reverse the enforcement denial order, direct entry of an order enforcing the Concurso Approval Order and the Concurso Plan in the United States, and grant Vitro SAB such further relief as it deems just and proper."
In a written statement issued to glassBYTEs.com™/AGRR™ magazine today, Vitro spokesperson Roberto Riva Palacio adds, "We remain confident in the strength of our arguments and the legal bases of our appeal."
This story is an original story by AGRR™ magazine/glassBYTEs.com™. Subscribe to AGRR™ Magazine.
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