5th Circ. Upholds Ban On Nondebtor Releases In Vitro Case

Law360, New York (November 28, 2012, 8:15 PM EST) -- The Fifth Circuit on Wednesday refused to sign off on the nondebtor affiliate releases in Vitro SAB de CV's reorganization plan, ruling that the Mexican glassmaker's case did not fall under the "exceptional circumstances" that would allow such releases under the U.S. bankruptcy code.

The appeals court panel affirmed a Texas bankruptcy court's decision that approved Vitro's Mexican reorganization plan, known as a concurso, under a Chapter 15 proceeding, but refused to enforce the releases of Vitro's nondebtor affiliates, saying the releases run contrary to U.S....
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