Vitro in Talks with Creditors
February 13, 2013
by Casey Neeley, email@example.com
and Penny Stacey, firstname.lastname@example.org
Vitro S.A.B. officials have announced that they are "holding
talks with creditors regarding [the company's] financial restructuring
The announcement was made at the request of the Mexican stock exchange,
according to the statement. In addition, company officials say,
"In the event that Vitro has any material information to provide
as a result of these discussions, Vitro will inform the Mexican
Stock Exchange in a timely fashion."
The statement comes amid reports that the company's stock recently
saw a spike not seen since 2010, as the result of the reported pending
settlement agreement, according to reports from Businessweek.
A letter filed in the U.S. Court of Appeals for the Fifth Circuit
on January 31 directed both parties to submit a brief on their positions
on "the impact of the ongoing bankruptcy proceedings in the
Northern District of Texas, involving several of Vitro's subsidiaries,"
by February 8, 2013.
Both letters address whether relief from the involuntary bankruptcy
proceedings' automatic stay should be granted in the case.
"The issue of whether relief from the involuntary proceedings'
automatic stay should be granted is, however, entirely distinct
from the issue of whether the Vitro automatic stay was violated,
and it should be addressed in the first instance by the Bankruptcy
Court if this Court rules in favor of the Ad Hoc Group in this appeal
even if the Ad Hoc Group could not proceed with respect to
Involuntary Proceedings Debtors, it would be immaterial to the relief
it seeks in the New York action against Vitro's other subsidiaries,
none of which have filed for bankruptcy," says counsel for
the noteholders in its letter to clerk Lyle W. Cayce.
"The ongoing bankruptcy proceedings of some of Vitro SAB's
subsidiaries have no impact on the sole issue in this appeal: the
propriety of the bankruptcy court's automatic stay order,"
says counsel for Vitro in its letter to Cayce. "Seven of the
debtors were not involved in the underlying case that was stayed
by the bankruptcy court. And the other ten debtors were not subject
to the jurisdiction of the bankruptcy court at the time they cast
their votes, which had no impact on the approval of Vitro SAB's
concurso plan in any event."
In February 2009, Vitro defaulted
on more than $1 billion in bonds. The company completed a Mexican
restructuring plan this past February. A Texas court ruled
against enforcement of the reorganization in the U.S. in June
which led to the appeal.
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