Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Vitro Order Blocking Bondholders Extended During Appeal

July 16 (Bloomberg) -- Vitro SAB bondholders will remain blocked from seizing assets of the Mexican glassmaker while an appeal over the company’s bankruptcy plan is pending, an appeals court decided.

The stay that a bankruptcy judge in Dallas imposed last month will “remain in place during the pendency of this appeal or until further order of this court,” the U.S. Court of Appeals in New Orleans said today.

Vitro appealed after U.S. Bankruptcy Judge Harlin DeWayne Hale refused to enforce the company’s Mexican reorganization plan in the U.S. last month, saying it was “manifestly contrary” to U.S. public policy. A Mexican court approved the plan in February, after more than a year of legal battles between Vitro and bondholders including Paul Singer’s Elliott Management Corp.

The company is pleased the appeals court “extended the temporary restraining order, thereby providing important clarity and certainty for Vitro’s U.S. customers throughout the appeal process,” said Roberto Riva Palacio, a spokesman for Vitro, which is based in San Pedro Garza Garcia, Mexico.

Donald Cutler, a spokesman for bondholders, declined to comment.

The case is Vitro SAB v. Ad Hoc Group of Vitro Noteholders, 12-10689, U.S. Court of Appeals for the Fifth Circuit (New Orleans).

To contact the reporters on this story: David McLaughlin in New York at dmclaughlin9@bloomberg.net; Brendan Case in Mexico City at bcase4@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.