Trustee Sues Vitro Units To Recoup $1.35B In Notes

Law360, New York (August 19, 2011, 5:13 PM EDT) -- A bondholder trustee of Mexican glass manufacturer Vitro SAB de CV and its units sought recovery Wednesday in a New York state court of $1.35 billion owed under notes the company issued, alleging that its insolvency proceeding was a "multiyear scheme" to avoid payments.

Wilmington Trust NA, a trustee for two sets of notes Vitro issued and its units guaranteed, says that the glassmaker has yet to repay principal and interest on the notes, after holders repeatedly demanded immediate payment.

The trustee is seeking to recoup...
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