Bankruptcy Court Approves Sale of Vitro America Assets
June 14, 2011

The U.S. Bankruptcy Court for the Northern District of Texas Dallas Division approved the sale of Vitro America's assets, including Binswanger Glass, to American Glass Enterprises LLC, an affiliate of private equity firm Sun Capital, through an order issued yesterday. The auction of Vitro America's assets took place on June 1.

"After a robust bidding process, the Purchaser's bid was selected as the highest and best offer for the Purchased Assets," reads the court's official order approving the sale. The court found adequate notice of the sale was provided, sale conditions are fair and reasonable, and the highest offer is in the best interest of the debtor, according to court documents.

The approval comes after several objections filed in the days following the auction, including objections from industry suppliers Pittsburgh Glass Works (PGW) and GTS Services regarding cure amounts as reported by Sun.

In response to such objections, Vitro America writes, "Most objections concern the alleged cure amounts for contracts to be assumed and assigned to Sun and additional information regarding adequate assurance that Sun can perform obligations under the assigned contracts. The Debtors have resolved many of these cure objections. For outstanding objections, the Debtors will retain a reserve in the amount of the alleged outstanding cure amounts pending resolution of the objection."

In response to a recent objection issued by former parent company Vitro SAB, court documents note that the purchased assets do not include the right to "the name, word, or mark 'VITRO' or 'VITRO AMERICA' … or any variation thereof … unless and until the purchaser obtains a valid license to do so from Vitro SAB."

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