Mexican Government Sides With Vitro in U.S. Appeal

Bill Rochelle’s Wire

Mexican Government Sides With Vitro in U.S. Appeal

The Mexican government filed papers urging a U.S. appeals court to reverse a lower court and enforce the reorganization of Vitro SAB in the U.S. Continuing to side with holders of $1.2 billion in defaulted Vitro bonds “may substantially complicate further bankruptcy cooperation between courts in the U.S. and Mexico,” the Mexican government said.

Vitro argued an appeal on Oct. 3 in the U.S. Court of Appeals in New Orleans, seeking to overturn a June ruling by a bankruptcy judge in Dallas who concluded that the Mexican reorganization plan violated fundamental U.S. policies by reducing the liability of Vitro subsidiaries on bonds, even though the subsidiaries weren’t in bankruptcy in either country.

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