Vitro Squares Off With Bankruptcy Plan Objectors In 5th Circ.

Law360, New York (October 3, 2012, 11:45 PM EDT) -- Bankrupt Mexican glassmaker Vitro SAB de CV on Wednesday asked the Fifth Circuit to sign off on its reorganization plan, while bondholders with $1.2 billion in notes argued that the plan's nondebtor affiliate releases run contrary to fundamental U.S. policy.

A three-judge panel heard oral arguments on the case, appealed by Vitro after a U.S. Bankruptcy Judge Harlin D. Hale approved the company's Mexican reorganization plan, known as a concurso, but refused to enforce the releases of Vitro's nondebtor affiliates.

In his ruling, Judge Hale invoked...
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