Vitro awaits bankruptcy ruling, seeks buyer for U.S. operations if forced into Chapter 11
The fate of Vitro SAB’s U.S. operations is now in the hands of U.S. Bankruptcy Judge Russell Nelms of Fort Worth, Texas. On April 1, the judge delayed ruling on whether the Mexican glass maker’s U.S. subsidiaries would be placed in Chapter 11, postponing his decision for an undetermined period of time, according to an April 4 Bloomberg Businessweek report.
The company will seek a buyer for its U.S. units—which include Vitro Architectural Products, Memphis; Binswanger Glass, Memphis; and Super Sky, Mequon, Wis.—if the judge declares them to be in Chapter 11, said Alejandro Sanchez, Vitro’s legal director, in an April 1 Bloomberg report.
“The U.S. operations have few assets … and would face liquidation without a buyer,” he said in the report. “We’re looking for alternatives ... .”
Vitro SAB, Mexico’s largest glass maker, has been in default on $1.2 billion in bonds for two years.
A group filed the involuntary Chapter 11 petition in November, saying they hold some 60 percent of the defaulted bonds, according to the April 4 report. They also filed an involuntary petition in Mexico against Vitro companies.
A judge in Mexico dismissed Vitro’s voluntary reorganization in that country, saying Vitro couldn’t push through a plan based on the vote of $1.9 billion of intercompany debt when third-party creditors were opposed, according to Bloomberg. Vitro is appealing.
Stay tuned to GlassMagazine.com as more details become available.