Judge Says Vitro Prevented Creditor Collections
December 7, 2012
by Casey Neeley, email@example.com
Editor's Note: The Binswanger Glass Co., mentioned in this article
is not Binswanger Enterprises, LLC which was recently acquired by
Grey Mountain Partners.
An opinion handed down by Judge Harlan Hale in the U.S. Bankruptcy
Court for the Northern District of Texas orders 10 units of Vitro
SAB be put into involuntary bankruptcy. In the opinion written Tuesday,
Binswanger Glass Co. and VVP Auto Glass Inc., are named as two of
the involuntary units ordered through bankruptcy.
In the 15-page opinion, Judge Hale finds that Vitro worked to
prevent creditors from collecting funds owed to them after it defaulted
on several hedge fund notes.
"Specifically, the Court learned during oral arguments that one
of the alleged debtors, VVP Auto Glass Inc. sold its stock to an
entity not named as a party in these involuntary petitions ... Surprisingly,
the alleged debtors did no provide this information to the [court]
despite their presence there during the consolidated appeals of
the bankruptcy court's orders dismissing the involuntary petitions.
Additionally, five of the alleged debtors reincorporated in the
Bahamas October 11, 2011, after the involuntary petitions were filed
and dismissed. This fact was not revealed to any court until the
hearing on October 5, 2012, nearly a year after the alleged debtors
reincorporated," Judge Hale writes.
"Despite the alleged tax purposes for such transfers, there was
not a shred of documentary evidence to demonstrate that the moving
of substantial assets outside of the United States was for a bona
fide tax purpose," he adds.
"Vitro is currently considering all of its legal rights regarding
Judge Hale's ruling, including a potential appeal," says Vitro spokesperson
Roberto Riva Palacio. "The impact of the ruling on Vitro is minimal
given that the entities placed into bankruptcy by the ruling constitute
a very small portion of Vitro's global business enterprise. We are
also prepared to continue serving our U.S. customers due to the
fact that our main subsidiary is protected by a separate and distinct
"Vitro disagrees with Judge Harlin Hale's opinion and we believe
that the opinion contains numerous inaccurate assertions," says
Vitro's executive legal president and general counsel, Alejandro
Sanchez Mujica. "Throughout its restructuring process, Vitro has
always complied with both Mexican and U.S. law, as well as all legal
orders issued in both countries, including those related to the
Vitro's subsidiaries and their assets."
Hale has previously ruled to not enforce Vitro's Mexican-based
bankruptcy restructuring plan. The U.S. Fifth Circuit Court of Appeals
in New Orleans upheld
this ruling against Vitro's appeal November 28.
This story is an original story by AGRR™ magazine/glassBYTEs.com™. Subscribe to AGRR™ Magazine.
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