Vitro Appeals Temporary Restraining Order
December 22, 2011
By Sahely Mukerji, email@example.com
Lawyers for Vitro S.A.B. de C.V. of Mexico appealed a judge's order on December 19 to lift a temporary restraining order (TRO) put in place at the request of Wilmington Trust Co. on December 16.
The TRO orders Vitro and its subsidiaries "to withdraw their consent to any plan reorganization of Vitro that purports to release the guarantees, to take such other actions as may be required to give effect to such withdrawal," according to the December 16 order.
Wilmington Trust, a Vitro creditor, alleges that Vitro units "have consented to or intend to consent to, and thereby approve, a reorganization plan in Mexico for Vitro that would purport to extinguish each Guarantee even if the Guarantor is not in insolvency proceedings - contrary to the terms of the Indentures - and that the Defendants have entered into lock-up agreements with Vitro to support extinguishment of the Guarantees ..."
According to court documents, Vitro's appeal sought "reversal of the order on the grounds that the court below improperly granted a mandatory temporary restraining order, incorrectly decided issues of law, incorrectly decided issues of fact, and, to the extent any issues ruled upon were committed to the discretion of the court, abused its discretion."
Plaintiff Wilmington Trust's counsel has responded to Vitro's appeal with a letter to Judge Bernard J. Fried requesting that he orders Vitro's counsel to appear before the court to state what efforts are being made to comply with the TRO.
"We understand that the Mexican court has not approved the Concurso Plan although it may do so at any time, and that Defendants can withdraw their consents at any time prior to approval," according to the letter.
The Wilmington Trust case was filed as a result of Vitro's bankruptcy proceedings in the United States and Mexico.
This story is an original story by AGRR™ magazine/glassBYTEs.com™. Subscribe to AGRR™ Magazine.
Subscribe to receive the free e-newsletter.