U.S. Court of Appeals Reinstates Stay in Vitro Case
January 6, 2012
The U.S. Court of Appeals for the Fifth Circuit has reinstated two earlier stay orders issued in the case of Vitro’s Chapter 15 filing, according to a court order issued yesterday.
“We know that the bankruptcy court will act expeditiously in resolving the above issues on remand,” writes the court. “This order is without prejudice to the rights of the parties to seek further review in this court following these factual determinations.”
As a result of the ruling, Vitro officials say its subsidiaries “may continue to support the proposed restructuring plan in Vitro’s concurso mercantil" proceedings, according to a company release.
“We have always been certain that the N.Y. State Court was not enforceable since our subsidiaries had already consented formally to the Conciliador’splan and only the final ruling by the District Judge in Monterrey was pending,” says Alejandro Sanchez Mujica, Vitro’s executive legal president and general counsel. “Nevertheless, the decision by the Court of Appeals is very important because for the third time a federal court in the U.S. reaffirms our position that Vitro’s subsidiaries can and have indeed supported the restructuring plan in Vitro’s concurso mercantil.”
The appeal, filed by a Vitro creditor, Wilmington Trust, came as the result of a December 22 ruling in which Texas court ruled that the automatic stay in the 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 mercantile.
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