Vitro SAB (VITROA), Mexico’s largest glassmaker, is temporarily shielded from attempts by bondholders to collect on legal judgments or seize assets in the U.S., a bankruptcy judge ruled today.
Bondholders with $1.2 billion in defaulted notes may continue their pending litigation “to reduce their claims to judgment,” Judge Harlin Hale wrote in a four-page ruling in U.S. Bankruptcy Court in Dallas.
Hale set an April 9 hearing to consider whether Vitro’s Mexican restructuring, approved by a Mexican judge last month, is enforceable in the U.S. That reorganization is opposed by bondholders who argued Vitro shouldn’t have been allowed to win creditor approval of its plan by voting $1.9 billion of loans between the parent and its subsidiaries.
“This order should not be construed by any party or touted as a victory,” Hale wrote. “It is simply an attempt to maintain the status quo for a short period until the ultimate issue in the case, the enforceability of the Mexican plan” in the U.S., can be decided, he said.
Vitro said in a statement that Hale’s order would protect company assets in the U.S., “in particular, accounts receivable owed from Vitro’s U.S. customers.”
A spokesman for bondholders declined to comment.
Vitro’s shares rose 0.1 percent to 17.15 pesos in Mexico City.
The case is Vitro SAB de CV v. ACP Master Ltd. (In re Vitro SAB de CV), 12-03027, U.S. Bankruptcy Court, Northern District of Texas (Dallas).
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