New developments in Vitro SAB bankruptcy case

Mexican glass manufacturer Vitro SAB de CV won another victory when the U.S. Circuit Court of Appeals in New Orleans halted a hearing where holders of some of Vitro's $1.2 billion in defaulted bonds were asking the judge to force Vitro's non-bankrupt subsidiaries to torpedo the parent's bankruptcy reorganization in a court in Mexico, according to a Jan. 9 Bloomberg BusinessWeek report.

According to the Bloomberg article, "Bondholders don't like the Mexican plan because it would allow shareholders to retain ownership even though the bonds aren't fully paid. In addition, bondholders fault Mexican procedures because the Vitro parent is using $1.9 billion in claims held by subsidiaries to vote down opposition from third-party bondholders."

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