Bankrupt Vitro Makes Case For Nondebtor Releases

Law360, New York (August 13, 2012, 8:48 PM EDT) -- Bankrupt Mexican glassmaker Vitro SAB de CV said Friday that the Fifth Circuit should enforce the nondebtor affiliate releases in its reorganization plan — which will leave Wall Street bondholders with $1.2 billion in notes — because the protection of claims against nondebtors is not a fundamental U.S. policy.

In a brief filed with the appeals court, Vitro argued that other circuit courts, including the Fifth Circuit, have approved nondebtor releases in the past, and that affirming a Texas bankruptcy court's decision to not enforce the...
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