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Creditors' committee claims Vitro has secret plan to keep U.S. units

Post Time:May 05,2011Classify:Industry NewsView:78

The creditors' committee for U.S. subsidiaries of Mexico's Vitro SAB charged in a May 4 court filing that the glassmaker didn't properly disclose how it hopes to retain an interest in the U.S. businesses after a court-approved sale, according to a May 5 Bloomberg Businessweek report.

According to Bloomberg: "In its objection to Vitro's proposed procedures for auction and sale, the creditors' representative alleges that the prospective buyer, Grey Mountain Partners LLC from Boulder, Colo.,, 'may be related to, or acting on behalf of' Vitro itself. The committee points to, among other things, a statement in Vitro's earnings report for the first quarter, where the company says it 'is considering maintaining an ownership participation at the end of the sale process.'

"The committee also alludes to reports in the Mexican press pointing to discussions where Vitro would become a minority owner after the businesses are sold to Grey Mountain."

Read related story on Sun Capital affiliate's objection to the proceedings.

Read the entire Bloomberg article...

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