Judge Says Investors Can Demand Ch. 11 Payments From Vitro

Law360, Dallas (August 30, 2012, 8:26 PM EDT) -- A Texas federal judge on Tuesday vacated a bankruptcy court order and said subsidiaries of Vitro SAB de CV haven’t been timely paying down more than $3 billion in debts during a Chapter 11 restructuring and are subject to demands for immediate payment from hedge funds and other investors.

U.S. District Judge Sidney A. Fitzwater held the bankruptcy court “clearly erred” with its ruling that because operating companies for Vitro, a major Mexican glass manufacturer, had been paying invoices from trade companies they conducted business with,...
To view the full article, register now.