Vitro Confronts Bondholders in Bid to Enforce Bankruptcy Plan
As appeared in Bloomberg BusinessWeek
June 4, 2012
Bloomberg examined the recent restructuring plan put into place by Mexican glassmaker Vitro SAB (VITROA) – at least, that is, in Mexico; Vitro was scheduled to ask a US bankruptcy judge to enforce its plan, stopping litigation by debt holders.
According to Madlyn Primoff, a bankruptcy Partner at Kaye Scholer LLP, “US Bankruptcy Judge Harlin Hale in Dallas will have to weigh whether the Mexican court’s approval of Vitro’s plan should be given deference or whether it conflicts too much with U.S. law and should be rejected.”
“It’s got the Good Housekeeping seal of approval from the Mexican court,” Primoff added. “For the U.S. court to upset that ruling and say, `OK, bondholders can have at it,’ that tests the issue of how cross- border restructurings get implemented here in the US.”