A federal judge in Dallas will issue a decision as early as
today that could determine whether Mexican glassmaker Vitro SAB pulls off what
in the U.S. would be an almost impossible feat: Emerging from bankruptcy
cleansed of $1.9 billion in debt, with its shareholder value largely intact.
The prospect has outside creditors howling with rage,
especially since they say Vitro’s bonds are governed by U.S. law and backed by
guaranties from Vitro’s subsidiaries around the world. A Mexican court in
February approved a plan of reorganization that would void those guarantees, as
well as denying any payments to creditors who refuse to sign off on the plan.
Lawyers familiar with the case say U.S. Bankruptcy Judge
Harlin DeWayne Hale in Dallas is likely to issue a decision today on whether
bondholders can block the Mexican reorganization from proceeding….
Read all about it at http://www.forbes.com/sites/danielfisher/2012/06/13/vitros-mexican-bankruptcy-has-new-york-hedge-funds-screaming-caramba/
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