Vitro Mexico Creditors Urge Court to Put
Subsidiaries into Bankruptcy
April 1, 2011
Creditors of Mexico-based glass manufacturer Vitro SAB urged Judge Nelms to put its U.S. subsidiaries, including Vitro America, into bankruptcy at a court hearing in Fort Worth, Texas, today.
According to an article in Bloomberg Businessweek, Christopher Shore, a lawyer for a group of creditors, told Nelms during closing arguments, "They have debts they can't pay These cases need to be in Chapter 11. We need to get down to the business of figuring out a way to restructure these debts."
Bloomberg reported that Vitro lawyer Andrew Leblanc asked Nelms to dismiss the involuntary petitions, saying the creditors haven't met the legal requirements to win approval.
Four Vitro creditors, unhappy with a recent debt settlement offer, filed a petition for involuntary bankruptcy in November 2010 against 15 of Vitro's U.S. subsidiaries, including Vitro America. U.S. Bankruptcy Judge Russell Nelms began a hearing March 31 in Ft. Worth, Texas, at the request of creditors. The hearing is scheduled to conclude today.
Yesterday, Vitro's chief legal director Alejandro Sanchez told Bloomberg News that the Mexico-based glass manufacturer will seek a buyer for its U.S. operations if its Chapter 11 bankruptcy is declared valid. According to the article, the U.S. operations, which includes Memphis-based Vitro America, would face liquidation without a buyer.
At press time, USGNN.com was awaiting a statement from Vitro America. Stay tuned to USGNN.com for updates as they occur.