Appeals Court Says Vitro Units Owe Interest On $1B Debt

Law360, Wilmington (May 10, 2012, 9:11 PM EDT) -- A New York appeals court on Thursday upheld a decision that put nondebtor affiliates of bankrupt Mexican glass maker Vitro SAB de CV on the hook for interest on $1.2 billion in debt held by bondholders including Aurelius Capital Management LP and Elliott Management Corp.

A five-judge appeals panel rejected the defendants’ argument that principles of comity require the state court to defer the matter to the Mexican district court overseeing Vitro’s bankruptcy. The Vitro units executed a "broad, unconditional guaranty" of the parent’s debt and...
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