Fifth Circuit Rules Not to Enforce Vitro’s Mexican Restructuring Plan Under Ch. 15

The U.S. Court of Appeals for the Fifth Circuit Nov. 28 ruled against Mexican glassmaker Vitro SAB de C.V. and upheld a bankruptcy court ruling denying enforcement of its Mexican reorganization plan because it would extinguish the obligations of non-debtor guarantors (Ad Hoc Group of Vitro Noteholders v. Vitro SAB de CV (In re Vitro SAB de CV), 5th Cir., 12-10542, 11/28/12).

Judge Carolyn Dineen King also affirmed the district court’s judgment recognizing the Mexican reorganization proceeding and the appointment of foreign representatives.

The appeals court found that the bankruptcy court and the district court correctly interpreted ...