Judge Decides to Delay Ruling on Possible
Involuntary Bankruptcy for Vitro Subsidiaries
April 4, 2011
A federal bankruptcy judge ruled Friday that he will decide at a later, unknown date whether subsidiaries of Mexico-based glass manufacturer Vitro SAB will be placed into involuntary Chapter 11 bankruptcy. The decision came as a court hearing in Fort Worth, Texas, wrapped up on Friday, according to an article in Business Week.
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, Binswanger Glass Co. and Super Sky Products. Judge Nelms began a hearing March 31 at the request of creditors.
Last week, Vitro's chief legal director Alejandro Sanchez told Bloomberg News that the Mexico-based glass manufacturer would 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.
Stay tuned to USGNN.com for updates as they occur.