Vitro Announces Favorable Bankruptcy Court
Ruling in Texas
April 13, 2011
Vitro announced this morning that, following a hearing in the U.S. Bankruptcy Court for the Northern District of Texas, orders for relief filed against certain of Vitros subsidiaries, including Vitro Packaging LLC, Vitro Chemical Fibers and Mining LLC and VVP Auto Glass Inc., have been denied.
According to a statement from the company, the judge ruled that the subsidiaries generally [are] paying their debts as they come due, and therefore denied the petitions for relief filed last week.
The petitions for relief filed against certain other non-operating subsidiaries remain pending, according to Vitro.
The courts decision, as well as the recent resolution in Mexico allowing Vitros voluntary pre-packaged concurso mercantil to proceed in the Mexican judicial system, reinforce Vitros position and will help us to continue with our restructuring process in an efficient manner, says Claudio del Valle, Vitros chief restructuring officer. Throughout this process, Vitro and its subsidiaries expect to continue normal operations, fulfilling our ongoing commitments to customers, suppliers and employees.
The latest decision from the court follows a recent announcement that Vitro America had agreed to an asset sale to Grey Mountain Partners, a Colorado-based private equity firm. Shortly after that agreement, the subsidiaries also filed for relief under Chapter 11.