Vitro Mexico Creditors Urge Court to Put Subsidiaries
April 1, 2011
Creditors of Mexico-based glass manufacturer Vitro SAB urged a federal
judge to put its U.S. subsidiaries, including Vitro America, into
bankruptcy at a court hearing in Fort Worth, Texas, today.
According to an article in Bloomberg
Businessweek, Christopher Shore, a lawyer for a group of
creditors, told the judge during closing arguments, "They have
debts they can't pay
These cases need to be in Chapter 11.
We need to get down to the business of figuring out a way to restructure
these debts." Fellow U.S. subsidiary Binswanger Glass Co. also
is one of the U.S. subsidiaries originally named in the involuntary
Bloomberg reported that Vitro lawyer Andrew Leblanc asked the judge
to dismiss the involuntary petitions, saying the creditors haven't
met the legal requirements to win approval.
Four Vitro creditors, unhappy with a debt settlement offer, filed
a petition for involuntary bankruptcy in November 2010 against
15 of Vitro's U.S. subsidiaries, including Vitro America and
Binswanger Glass. U.S. Bankruptcy Judge Russell Nelms had begun
the hearing yesterday at the request of creditors, and it was scheduled
to conclude today.
Yesterday, Vitro's chief legal director Alejandro Sanchez told
Bloomberg News that the Mexico-based glass manufacturer will seek
a buyer for its U.S. operations if its Chapter 11 bankruptcy is
declared valid. According to the article, the U.S. operations would
face liquidation without a buyer.
At press time, glassBYTEs.com was awaiting a statement from
Vitro America. Stay tuned to glassBYTEs.com for updates as they
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