Judge Won't Enforce Vitro Mexican Plan's Nondebtor Releases

Law360, New York (June 13, 2012, 11:12 PM EDT) -- A Texas bankruptcy judge on Wednesday ruled that glassmaker Vitro SAB de CV's Mexican reorganization plan's releases of its nondebtor affiliates' debt is contrary to U.S. public policy, opening the door for bondholders seeking to collect on $1.2 billion in debt.

U.S. Bankruptcy Judge Harlin D. Hale said the concurso, or the reorganization plan approved by a Mexican bankruptcy court, doesn't sufficiently protect the interests of American creditors because it completely cuts off the noteholders' rights to seek payment from Vitro's nondebtor affiliates.

"The concurso approval...
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