Mexican Court Rules in Favor of Vitro
November 27, 2012

by Casey Neeley, cneeley@glass.com

Vitro SAB released a statement yesterday applauding a ruling it says was made by a judge for the Second Circuit Court in Monterrey, Mexico Friday essentially upholding the legitimacy of Vitro’s restructuring under the Ley de Concurso Mercantil.

The decision, written by Claudio Perez Hernandez recognizes the Mexican Concurso Mercantil laws argued by Vitro in the appeal and states that "bondholders' grievances were without merit," according to the Vitro press release. Further, the release states that Hernandez "affirmed [Vitro's] challenge regarding the calculation of interest the bondholders are attempting to collect."

Alejandro F. Sánchez Mújica, Vitro's executive legal president and general counsel, says, "We are very pleased with this decision as it confirms once again that Vitro has acted in accordance with the law. In addition to being an important step towards the final conclusion of the various appeals initiated by certain dissident bondholders, this ruling also creates a very important precedent for ongoing proceedings."

Donald Cutler, spokesperson for the bondholders represented in the bankruptcy proceedings, declined to comment.
According to the release, officials for Vitro anticipate further contention for the decision in the way of an injunction, but maintain confidence in their arguments.

In February 2009, the Mexico-based manufacturer defaulted on more than $1 billion in bonds. Vitro completed a Mexican court approved debt restructuring plan this past February. A Texas court ruled against enforcement of the reorganization in the U.S. in June. Vitro is currently appealing this decision. Mexican officials have filed an Amicus Curiae with the U.S. court in support of the appeal.

Stay tuned to USGNN.com for further case updates.