Vitro Takes Nondebtor Release Ban To Supreme Court

Law360, New York (March 29, 2013, 8:03 PM EDT) -- Vitro SAB de CV on Wednesday petitioned the U.S. Supreme Court to review the Fifth Circuit’s decision rejecting nondebtor affiliate releases in the Mexican glassmaker’s reorganization plan, saying the ruling weakens cooperation between U.S. and foreign courts involved in cross-border insolvency proceedings.

The appellate court’s November decision affirmed a Texas bankruptcy court’s ruling that approved Vitro’s Mexican reorganization plan under a Chapter 15 proceeding, but refused to enforce the releases of Vitro's nondebtor affiliates, saying they run contrary to U.S. public policy.

The petition claims the...
To view the full article, register now.