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Judge rules Vitro subsidiaries can't escape guarantees on $1.2 billion in defaulted bonds

Post Time:Dec 11,2011Classify:Industry NewsView:503

 

Vitro SAB may have difficulty enforcing its Mexican reorganization in the U.S. after a New York state judge ruled that the glassmaker's subsidiaries can't escape their guarantees on $1.2 billion in defaulted bonds, according to a Dec. 9 Bloomberg BusinessWeek report.  

 

Whether Vitro's Mexican reorganization can be enforced in the U.S. “is an issue for the federal courts, including the bankruptcy court,” said Supreme Court Justice Bernard J. Fried in his opinion, according to the article. Vitro has been given protection under Chapter 15 in U.S. Bankruptcy Court in Dallas, where the company will ask the bankruptcy judge to enforce the Mexican reorganization. In the Chapter 15 case, the bankruptcy judge rebuffed an attempt by Vitro to halt the New York suit. Vitro is taking an appeal to the U.S. Court of Appeals in New Orleans, according to the Bloomberg BusinessWeek article.

 

Source: http://news.businessweek.comAuthor: shangyi

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