Vitro's U.S. bankruptcy approved after bondholder fight

Vitro SAB, the Mexican glassmaker that defaulted on $1.2 billion in bonds, won approval of a U.S. bankruptcy petition that will focus the fight over its restructuring in a Mexican court, according to a July 21 Bloomberg report.

Bondholders wanted to block U.S. recognition of the Mexican proceedings because they object to Vitro's decision to use $1.9 billion of intercompany debt to gain a majority vote for the restructuring proposal in the Mexican court, according to the Bloomberg article.

With bankruptcy protection in Mexico and now in the U.S., "the company will be able to continue the financial restructuring process even as it's prepared to face any new legal action against it," Alejandro Sanchez, Vitro's legal director, said in an e-mail statement to Bloomberg.

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