Judge Rules Automatic Stay Precluded Entry of Vitro's Temporary Restraining Order
December 23, 2011
A U.S. bankruptcy judge issued a ruling on December 22 determining that the automatic stay in Vitro’s Chapter 15 case precluded the entry of the temporary restraining order (TRO) previously issued by a New York state court ordering Vitro’s subsidiaries to withdraw their consent to the proposed restructuring plan in Vitro’s concurso mercantil,according to a company news release.
The order states “this Court determines that the automatic stay precluded the entry of the TRO and precludes the entry of a preliminary injunction by the New York Court,” according to the release.
The judge’s decision also precludes the entry of a preliminary injunction by the New York Court and stays Wilmington Trust and the ad hoc group of noteholders from seeking further injunctive relief from the New York Court regarding the votes of Vitro’s subsidiaries in the concurso mercantilproceeding.
“We are pleased that Judge Hale responded so quickly to protect Vitro and its concurso case from this latest attempt by a minority group of creditors, to disrupt the Mexican concurso case,” says Alejandro Sánchez Mújica, executive legal president and general counsel for Vitro in the release. “Vitro looks forward to the successful conclusion of its concurso case and the approval of the concursoplan proposed by the conciliador, which Vitro believes will achieve a financial structure that is sustainable for the company for the benefit of all its stakeholders.”
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